Security Briefing – 15 May 2009

Thailand’s hotel occupancy has fallen to historic lows with the lack of guests being blamed on the global financial crisis, H1N1 influenza outbreak and the recent internal political uncertainty in the country. Hotel groups listed on the Stock Exchange of Thailand saw their first quarter earnings down by an average of 70 percent in comparison with the first quarter of 2008.

Kurt Wachtveitl, the outgoing general manager of the Mandarin Oriental, stated on 12 May that hotel occupancy rates currently stand at just 20 percent across the board. Surapol Sritrakul, the president of the Association of Thai Travel Agents, announced that the number of tourists visiting the country between January and April 2009 was over 50 percent less than the first quarter of 2008. A large number of hotels around the country are reportedly being put up for sale with the highest concentration of struggling hotels in Bangkok, Phuket, Koh Samui, Hua Hin, Pattaya and Chiang Mai.

Many affluent customers have been deterred from travelling to Thailand for fear of being stuck in the country, as was the case when People’s Alliance for Democracy (PAD) supporters took over three airports for several days in late 2008. At the time Surapong Techaruwichitr, the vice president of the Thai Hotels Association, announced that high-end hotels were being particularly hard hit as affluent customers tend to be more careful with regard to travel security. The announcement on 12 May that two cases of H1N1 influenza have been confirmed in Thailand will pose a further threat to the country’s tourist industry.

In another blow to the government, Foreign Minister, Kasit Piromya, was forced to announce on 13 May that the regional summit of Asian leaders had been postponed for a third time due to scheduling conflicts. The ASEAN summit has already been cancelled twice, firstly as a result of last year’s airport closures and more recently in April after a group of protestors stormed the Royal Cliff Beach Resort, a venue for the summit, in Pattaya (100 km south-east of Bangkok).

International Operations Group – Advice

Thailand has experienced regular protests during the last three years. PAD supporters caused a political crisis in the country with a series of demonstrations late in 2008 while United Front of Democracy against Dictatorship supporters clashed violently with security forces in Bangkok in April. The political situation currently remains very uncertain and tensions are high. There is a strong likelihood that further demonstrations will occur in the coming weeks or months. Although foreign personnel are not generally targeted during protests in Thailand, personnel should exercise extra vigilance and keep away from all large political gatherings and protests in case they do escalate to violence.

International Operations Group – Services

International Operations Group provides intelligence and crisis management support for corporate and individual clients across the globe. We are able to provide support and advice to organisations with personnel and interests in Thailand and other areas where critical incidents occur.

Please email us at intel [at] interopsgroup [dot] com or telephone us on +61 2 8003 3933 for additional information or confidential support.

For more information on our fee-based intelligence updates or bespoke reporting, please email Rob Stevenson - rob [at] interopsgroup [dot] com. Rob can also be telephoned on +61 [0] 420 244 909.