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Monday, May 17, 2010

Bangkok Under Siege

Scenes of barricaded troops and sounds of deafening explosives marked by the occasional sniper bullet are becoming an all too familiar presence in Bangkok’s central district as anti-government ‘red-shirt’ protestors refuse to disband from the troubled streets.

To temper the escalating anarchy and human toll, Prime Minister, Abhisit Vejjajiva was set to introduce a curfew in a bid to restore calm and reduce the devastating loss on lives and businesses. Now more drastic measures will be enforced.

Earlier today the Thai government announced its plans to do a clean sweep of fortified area to rid the streets of all remaining protesters. That includes all women and children leaving their camps before 6PM (AEST) this evening.

In a national address broadcast live on Sunday night, the Prime Minister made it clear that his government would not allow the nation to be held hostage by the ‘red-shirt’ protesters’ illegal occupation of its city streets.

“Ending the protest with the least losses is the only way to bring about peace and normalcy,” the Prime Minister said in his speech.

Resembling a war zone, all MRT and BTS train services are temporarily closed along with the shopping malls. Commercial towers now lie empty as with the once-thriving four and five star hotels, with most begging travellers to stay away. Other luxury hotels have simply closed their doors until further notice, keeping in mind the safety of their guests and staff.

But what will happen to Central Bangkok’s business district if the two month siege comes to an end?

According to STR Global, the leading provider of market data to the international hotel industry, Bangkok’s once-resilient hotel market has been greatly impact by the violence. Occupancy levels fell by .02 percent during April, 2010, to 44 percent though only one month earlier occupancy levels were at 63.3 percent during the first month of turmoil.

“In spite of violence and significant recent declines in occupancy this past month, Bangkok’s hoteliers have held firm with rates, recognising that price reductions do not stimulate demand that just isn’t there”, said Elizabeth Randall, managing director of STR Global. “Discounting would only double the pain for hotels already suffering from falling occupancies”.

To the hoteliers, commercial businesses and their beleaguered employees whose livelihood centers around Silom Road’s golden strip – in the heart of Bangkok’s ‘war zone’ - it will take more than just pricing to entice guests for the moment back through their doors.

Jill Walsh / Stephen Morton: Bangkok

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