4.36-PAD caused lots o damage to Thailand, by Pukky, this blog’s neutral analyst

For political gains, PAD forced Thailand to invest in a loss of 210 billion baht by closing Suvanaphum

The Bank of Thailand, seen as the most neutral observer of Thai politics, said yesterday that the PAD occupation and closure of the Suvanaphum airport, according to the bank’s study, cost the country a whopping 210 billion baht. Of the 210 billion baht damaged, is about 900 million  damage in service sector, 680 million baht in transportation sector, 420 million in industrial sector, and 100 million in other tourism sectors.

While many in Thailand, such as the Foreign Minister Kasit, called the Suvanaphum airport closure by PAD a “fun and entertaining event,” and are using rationale like “to change and better the political system, sometimes you have to invest money in it,” others are saying that no amount of  political gain can make up for the monetary damages.

For example, the Bank of Thailand says, the loss of the 210 billion baht, will cut about 2% of GDP. Economist says the loss of 2% of GDP overnight, could mean a loss of about 50,000 jobs in the related industries.

“The loss did not result in any political gain but only resulted in changing the government from Thaksin influenced side to the military influence side. How can you justify spending 210 billion baht in changing the government. it makes no sense and it is the largest single investment this counrty has ever made to get the Democrat and Mark in power,” said a red Shirt political observer on D-TV.

In the meantime, on the political front, the Minister of Communications, Sophon, ordered the Thai Airports Authority to lower the landing and take-off fee for the use of 6 airports under its management, including the Suvanaphum airport, by 20%. The reduction is expected to cause a loss of about 380 million baht, for the remainder of the year.

One airline observer, said in Bangkok Today newspaper that, “The reduction will result in more airlines using the Suwanaphum airport and it will indirectly benefit the Thai tourism industry and help with better logistics for the air transport industry, however, the major problem is continues to be with foreigners who see this government as lienient to those PAD-who stop the airport,” quoted Bangkok Today.

On the bright side, as most Thai newspaper who supports the PAD and the government are saying, is that tourist arrival fell only about 40% in January, compared to a 60% fall estimated. The boost came from increase direct flight and chartered flights into parts of Thailand, outside Bangkok area. The central bank says the Tourism Ministry curren campaigh to get Thais to travel more in Thailand will not generate much activity as the Thais are watching their spending. The bank says the Thai Tourism Authority will have to try and attract more foreign tourist.

Meanwhile, as tourism faltered under weight of past PAD activities, activity at the Laem Chabang Port, dropped for the first time in 18 years of operations. The movement of goods at the port dropped a whopping 20% in december, compared to same time last year. In January Thai exports fell 14%, following a drop of 20% in December-the biggest drop in 17 years.