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Phuket and Hat Yai airports re-open amid deepening Thai crisis; tourism set to be hit – 01/09/08

Published: 01/09/08

Source: ©The Moodie Report

By Martin Moodie

THAILAND. Thousands of holidaymakers are now able to leave the country after Airports of Thailand (AoT) re-opened Krabi, Hat Yai International and Phuket International airports following the closure of both facilities due to political demonstrations. But serious damage has been inflicted on the country’s tourism industry.

In a notification to The Stock Exchange of Thailand this morning AOT said both Hat Yai and Phuket were now functioning. A blockade by demonstrators, protesting against the government of Samak Sundaravej, forced the suspension of airline services at Hat Yai from Friday, 29 August at 4.40pm to 30 August at 9.00am.

A similar crisis enveloped Phuket International Airport, Thailand’s second-busiest airport, which was closed from at 4.50pm on Friday to Sunday at 11am. Around 15,000 foreign visitors are reported to have been stranded for two days after the protesters stormed the tourist airport’s runway and blockaded entrances.

The protests are being driven by supporters of the People's Alliance for Democracy, who have barricaded themselves within Bangkok's main government compound, demanding that the Prime Minister step down. The controversy flared after former Prime Minister Thaksin Shinawatra (deposed in a 2006 military coup) fled to the UK to avoid facing corruption charges. The protesters claim that the government is operating as his political proxy.

The political crisis and targeted protests are a disaster for the Thai tourism industry, with many bookings set to be cancelled until the country stabilises. The high-spending Japanese, in particular, are likely to cancel holidays and choose alternative destinations. That is clearly bad news for the country’s dominant travel retailer, King Power, whose business will have been hit sharply by events of recent days.

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