Britain, Canada and Australia have issued travel warnings against coming to Bangkok, on anticipation of violence related to the huge red-shirt rally. Meanwhile, it is feared that if prolonged, the protests will worsen fragile economic conditions.

With businesses concerned about how a prolonged rally might tarnish the image of the country, which is hosting an Asean Summit this week, eight tourism associations will issue a statement today calling for a halt to it and the avoidance of any violence, as well as steps towards reconciliation. "The tourism sector is being terribly affected by the political unrest. Many tourists are opting for other destinations instead. We're heading for the worst," said Federation of Thai Tourism Associations chairman Charoen Wangananont.

Association of Thai Travel Agents president Apichart Sankary said only 40 chartered flights were scheduled to fly to Thailand for Songkran, down sharply from more than 200 last year. A prolonged rally could also deter Chinese visitors planning to come here for their Labour Day holiday early next month. "If the chaos continues, many operators will have to close their businesses and lay off workers," he said.

Tourism and Sports Minister Chumpol Silapa-archa admitted Tuesday's attack on Prime Minister Abhisit Vejjajiva's official car in Pattaya was raising security concerns among tourists. Tourism Council of Thailand chairman Kongkrit Hiranyakit earlier said there were expectations of Japanese, South Korean and Chinese tourists returning by this quarter, but the renewed chaos may delay that. As it is now, Thailand will be lucky to welcome 12.8 million visitors this year, less than the Tourism Authority of Thailand's target of 14.8 million, he said.

The Thailand Exhibition Association, expecting zero growth for the meetings, incentives, conventions and exhibitions industry, said the Kingdom would miss its goal of becoming a regional hub, due to the cumulation of negative factors. Businessmen yesterday expressed concern that a prolonged anti-government protest might encourage Asean leaders to rethink their participation in the Pattaya meeting this weekend.

"A prolonged protest will undermine not only the country's economic growth, but also its image among Asean members," said Santi Vilassakdanont, chairman of a private committee consisting of the Board of Trade, the Thai Bankers' Association and the Federation of Thai Industries. He said that although security must be beefed up, measures must be in accordance with the democratic rule of law.

Board of Trade deputy secretary-general Pornsilp Patcharintanakul said illegal activities were the last thing Thailand needed and urged the government to take control of the situation. If the protest continues, some Asean leaders and observers from the World Trade Organisation and the United Nations Conference on Trade and Development may be reluctant to participate in the regional summit this weekend. That would damage the Kingdom's image, he said.

A survey released yesterday by Political and Economic Risk Consultancy showed foreign investors were now more concerned about political instability than Thailand's ranking in the Asian corruption table, which is second only to Indonesia. The Japan Credit Rating Agency is maintaining a "negative" outlook on its ratings for Thailand's debts, out of concern over political developments.

"On the political and social front, the structural factors that brought about the turmoil in 2008 remain unresolved. There remains the possibility that the current government may lose its public support, the entrenched confrontation may resurface, political and social unrest may recur and effective economic policies may be hampered," it said in a statement.