From ST:
http://www.asiaone.com/Travel/News/Story/A1Story20081205-105829.html
The best time to shop in Bangkok?
Discounts up to 80 per cent in Bangkok, but Singapore-owned businesses, other shops say sudden drop in tourists is hitting them hard. -TNP
Sun, Dec 07, 2008
The New Paper
By Zaihan Mohd Yusof
THIS is the best time to shop in Bangkok.
Discounts of up to 80 per cent scream at shoppers from display windows at Siam Centre, Siam Squareand Siam Paragon.
Yet, cash registers are not ringing, said Singapore- owned businesses in Bangkok.
Amid the global economic uncertainty, businesses are facing a "double whammy" from the events which unfolded last week in Bangkok.
Said Mr Winston Doong, honorary chairman of the Singapore-Thailand Chamber of Commerce: "Businesses are counting their losses right now. Most have been dealt a double blow from the poor global economy and internal politics in Thailand.
"It doesn't help that potential investors may have already lost confidence in Thailand, plus locals are not spending for fear of the uncertain political climate and economy."
Mr Doong said there were about 500 Singapore- owned businesses in Thailand.
Two Singapore businessmen told The New Paper that over the weekend, their profits dipped by 50 to 60 per cent.
Said Mr James Suen, 37, owner of a shoe business at Siam Centre: "In areas patronised by locals, the political turmoil has not affected business too much. But in the tourist belt, we could feel the pinch over the weekend.
Business is bad, but not as bad as during the Sars (Severe Acute Respiratory Syndrome) period in end 2002. That was about a whole month of poor sales." On average, Mr Suen's nine shoes shops sees sales of about $200,000.
Just across from Mr Suen's shoe shop, Singaporean Lionel Lim's women's shoe store at Siam Square was also hit.
Only one pair sold
Yesterday, a salesgirl manning Mr Lim's store Mixables, reported that at 5pm, she had sold only one pair of shoes.
Said Ms Karittha Kaewwonglom, 30: "We sell more shoes to locals than foreigners. But tourists also make up our clientele.
"Since the start of the PAD protest at the airport, not a single tourist has appeared at our shop. It also doesn't help that locals are tightening their belts."
Shoppers like Nanda Owatnukpad, 28, are treated like queens with salesgirls being extra- nice to them.
She said: "I do not shop often here, but the discounts are amazing.
"But in the end I feel bad to bargain too much because I know the shops are not making much these days because there aren't any tourists around." The huge discounts have been noticed by locals and tourists alike.
Ms Sunaree Rassameephen, a frequent shopper there said, at most "discounts of 30 per cent for year-end sale is normal".
She said: "Too bad not many people are grabbing the 70 per cent discounts offered by most shops." The retail sector is not the only one to feel the pinch from political instability.
The Thai media has reported that even some high-end hotels are offering discounts of 80 per cent to woo tourists during the year-end holidays.
SHOPS IN TROUBLE: Empty streets signal the
double whammy Thai shops are facing- fewer
tourists, and locals spending less, despite the
Christmas decorations.
Tourism outlook grim
Mr Jutaporn Reungronasa, deputy governor of the Tourism Authority of Thailand, predicted that the number of tourists next year will drop to seven million, half of the projected 15 million.
One Singapore businessman selling security equipment said last week's blockade at the airport "gave a lot of problems".
The Singaporean, who gave his name only as Mr Li said 60 per cent of his business "went down the drain" during those eight days.
Said Mr Li, 38, a sales director: "My equipment couldn't be brought into the country on time. My outgoing contracts and agreements were also stuck because the couriers couldn't send them out.
"There will be a penalty incurred by my company for new projects that are late. The year-end period is a crucial period for businesses to clear their budgets and projects.
"I also anticipate the airlines will pass the cost to customers like me. Everything is on hold and clients have adopted a wait-and-see attitude."
Everybody in Thailand, locals and businessmen included were waiting for next week's announcement of who will be the next prime minister to lead Thailand.
But that was cancelled yesterday.
Government spokesman Mr Nattawut Saikuar said the house speaker would set a new date, without giving any indications.
There were fears that People's Alliance for Democracy (PAD) would stage another protest if the wrong man was chosen as premier.
Hopefully not like at the one at Suvarnabhumi International Airport, where PAD's sit-in crippled flight operations for eight days.
The result was ugly. Some 230,000 tourists were left stranded in Thailand as flights out of Bangkok were cancelled.
Thai Airways, which had to cancelled 1,000 flights, reported that it was going to sue PAD for the 20 billion baht ($100 million) it lost in revenue.
Yet, Mr Doong and trade analyst like Mr Cecil Leong, are confident that the Thai economy will prevail.
Added Mr Doong: "While I personally know of a Singaporean who has sold his business here recently, I have not received any feedback from other Singaporean businessmen in Thailand.
"Maybe the full effects will only be noticed next year. But I'm confident that the economy will rebound because of its resilience and the economic fundamentals in place."
MrLeong said the "hiccup in the political scene" is nothing new to the Thais who have seen unrest and coups."
He said: "Sure, next year everybody will suffer in terms of the economy, but the Thais are known to be able to weather uncertainty.
"It just takes time for foreign investors to gain confidence in Thailand again."
