Thailand counts the cost of SARS epidemic

THAILAND. 2003 looks as if it will be a bleak year for one of Asia’s top holiday destinations, as the Tourism Authority of Thailand (TAT) predicts a -10% drop in visitors.

Following a first-half slump in arrivals caused by fears of the SARS virus, TAT deputy governor Pornsiri Manoharn told Reuters that only 9.7 million visitors were expected this year, a -10% decrease from 10.8 million visitors in 2002.

“Since the start of the SARS outbreak in March, we’ve seen a steady decline in the number of visitors to Thailand,” Pornsiri said in an interview with Reuters. “This is very unprecedented for the Thai tourism industry.”

Before the SARS outbreak, Thailand had projected a +6% growth in the number of visitors in 2003.

According to Pacific Asia Travel Association (PATA) SARS has wiped out three million tourism jobs in the worst-hit parts of Asia since mid-March, delivering a bigger hit than the September 11 attacks, the Bali bombings and the Iraq war.

Pornsiri said she expected Thailand’s revenues from tourism to fall to THB290 billion (US$6.98 billion) this year from THB323 billion, (US$7.71 billion) or about 6% of the country’s gross domestic product, in 2002.

Tourist arrivals in the first six months of this year were down by -19.3% to 3.02 million, compared with +5% growth seen a year earlier.

TAT said it is aiming to attract 11.0 million visitors and THB340 billion (US$8.12 billion) in tourism-related revenues in 2004.

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