Hotel occupancy rates and guesthouse bookings in Khaosan Road, a prime area for backpackers and other budget-conscious travellers, was sharply declined due to the ongoing political turmoil, according to Surat Vongchansilp, president of the Khaosan Road Business Association.

Following the anti-government Red Shirt protests, particularly the Thursday blockades of Bangkok’s major intersections, many tourists on Friday cancelled their Khaosan bookings and total bookings dropped to only 20 per cent from 95 per cent of the reservation for the Songkran Festival.

He said existing tourists have cancelled remaining days in their room bookings and checked-out, while new tourists opted not to come due to the protest, fearing a resumed political crisis and worried about possible airport closures. Tourists communicated to each other via e-mail, Mr. Surat said, and the Internet had spread the news worldwide.

Mr. Surat said the association had earlier predicted that tourist numbers would decline by five per cent this year because of the global economic crisis, but after the meeting of association members, bookings evaporated by as much as 80 per cent. The association expected a Bt300 million cash flow during Songkran, but after the protest, Bt200 million in circulation is considered the best prospect, he said.

Khaosan Road, Thailand’s heaven for backpackers, is a famed venue for tourists and Thais alike to celebrate the Songkran ‘Water’ Festival. Mr. Surat, however, affirmed that Khaosan entrepreneurs would continue to hold their celebration as planned during April 12-15.

The tourism industry was sluggish for seven to eight months, and the association hopes their business will recover and expected to cash in during the Festival, but their plans have been shattered because of the protest, he said.