Thai economy counts toll of political unrest
Thai Prime Minister Abhisit Vejjajiva admitted Tuesday that the economy could shrink by as much as five percent as the kingdom counted the cost of its latest bout of political unrest.
With a state of emergency in the capital ongoing after violent street protests that laid bare the kingdom's deep social divide, the premier also announced a series of measures to combat falling tourism revenue.
"It's likely that our GDP will be even lower and contract by two to five percent," Abhisit told reporters after a weekly cabinet meeting.
Thailand could lose 190 billion baht (5.35 billion dollars) in tourism revenue and 3.2 million visitors as a result of the recent troubles, according to the Tourism Council of Thailand.
In response, the kingdom will extend tourism incentives such as the reduction of visa fees, flight landing charges and national park entrance fees for another year.
The country's tourism industry accounts for five percent of gross domestic product and employs two million people, or up to seven percent of the total workforce.
The tourism council forecast revenue for the industry this year could drop 35 percent to only 350 billion baht in 2008.
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