Thailand's tourism industry could lose 90 billion baht if the conflict continues.

On February 21, the Tourism Authority of Thailand announced that the country's tourism industry would lose approximately 90 billion baht if political conflicts escalated into violence and lasted for another six months. The number of tourists visiting Thailand could decrease by up to 900,000.

Preliminary statistics from the Tourism Authority of Thailand show that the group of tourists traveling on organized tours experienced the sharpest decline, accounting for approximately 30-35% of the total number of visitors to the country.

Anti-government protesters surrounded the Prime Minister's temporary office in Bangkok. (Source: AFP/VNA)

The Vietnam National Administration of Tourism is expected to hold a meeting with tourism associations to launch a new promotional program aimed at restoring tourist confidence during the last six months of 2014.

The new promotional program will likely be implemented in the most affected areas, including Bangkok, Pattaya, Rayong, Hua Hin, Cha-am, and Kanchanaburi. The Tourism Authority of Thailand will also coordinate with Airlines of Thailand to begin implementing these programs starting next month.

The recent political crisis in Thailand has caused losses for 209 Thai travel agencies specializing in serving Chinese tourists, especially since it coincided with the Lunar New Year. In April 2013, during the Songkran festival, the number of Chinese tourists visiting Thailand reached 150,000.

The Thai economy is projected to incur further losses of 120 billion baht if the country fails to form a new government within the next six months. This forecast was made during a meeting of the Joint Standing Committee of Trade, Industry and Banking.

Members of this committee argue that if Thailand cannot form a new government within the next six months, economic growth will decline by a further 1%, equivalent to a loss of 120 billion aht.

In the event that Thailand delays forming a government for a year, the losses would amount to approximately 240 billion baht, equivalent to a 2% reduction in GDP. Thailand's economic growth was previously estimated at around 4-5% this year, but prolonged political instability could push GDP growth below 3%.

The Thai Center for Business and Economic Forecasting previously predicted that the current crisis is causing approximately 40 billion baht in losses to the economy.

These losses are due to a decline in consumption and tourism. It is estimated that Thai consumers will spend less than 500 million baht per day, while daily tourism revenue is also down by approximately 200 million to 500 million baht.

According to VNA