Chinese New Year bookings plunge in Thailand

In Thailand, the anti-government movement's plan to shut down Bangkok on January 13 is expected to damage the city's image as a prime tourist destination. The impact will continue through the Chinese New Year which begins on January 31. And with warning signs of charter-flight cancellations, especially from China, Thailand's tourism industry is worried about how long it can withstand the pressure.

It is often dubbed the 'Land Of Smiles'. It's what they are known for and it's what they believe keeps tourists coming back. But Thailand's tourist-friendly image has been tested in recent months with images like this circulating the globe- from mass demonstrations that paralyze the city to deadly clashes between anti-government protesters and police.

Protest Leaders are now upping the ante. With their planned operation to seize Bangkok, Thailand's lucrative tourism industry is under threat.

"The planned mass rally on January 13 could continue. This will be a concern for Chinese tourists as we get closer to the Chinese New Year." said Somsak Pureerisak, Caretaker Tourism and Sports Minister.

And that means bad news. Thailand is one of the most popular travel destinations for Chinese tourists during holidays. Last year, for the Chinese New Year period alone, it was estimated that more than $140 million was injected into Thailand's economy. This year, however, the numbers looks set to plunge.

"The number of Chinese tourists, before the Chinese New Year period, has gone down by 70 percent. That's a lot." said Paiboon Saetang, Vice General Manager, C.C.T. Express Co., LTD.

More than 40 countries, including China, have issued travel advisories to Thailand, and it seems, their citizens are listening. It's peak season and there aren't as many tourists as usual. The queues at key tourist sites have disappeared- a telling sign that all is not well.

Thailand's tourism industry accounts for more than 7% of the country's economy. But, the scale of the planned protests, which could coincide with Chinese New Year, has deterred tourists from the Kingdom. The tourism industry has already started seeing signs of flight cancellations especially those from China.

"The situation in Thailand is unstable. Chinese tourists are concerned for their safety so they are canceling reservations. This has reduced our passenger numbers so we have cancelled some flights." said Yuan Shengli, General Manager, Thailand Bureau, China Eastern Airline.

Ultimately, Thailand's tourism rebound seems to a case of "when" given that a solution to this political crisis seems as far away as ever. And unless the nation's political troubles are dealt with, Thailand's public 'smile' won't be able to hide its inner turmoil for much longer. And that will likely to keep visitors away.