Now rolling into its third week, thousands of protesters are showing no signs of giving up. On the contrary, they are entrenched in the centre of commercial Bangkok for the long-term despite the heavy financial toll that their presence is having on shopping malls and five star hotels in the area.

Under the state of emergency, Prime Minister Abhisit Vejjajiva has banned public gatherings of more than five people and given broad powers to police and military under emergency rule announced Wednesday in the capital and surrounding areas.

This is the fourth time that a prime minister has resorted to a state of emergency in just two years, a telling statistic on why the country’s tourism and economy is suffering.

Most Asian neighbours are upgrading their travel advisories and recommending citizens go else where until the situation is stabilised in Thailand.

Tensions have escalated after red shirt protestors invaded the parliamentary compound on Wednesday afternoon, prompting lawmakers to flee some by army helicopters. Police and security officers appeared helpless to intervene.

Tourist chiefs and business leaders have urged the demonstrators to end their action, warning it is taking a heavy toll on the nation’s economy.

However, Mr Abhisit’s government is in a bind and critics challenge the wisdom of declaring a state of emergency. They say he will be dammed if he acts against the protesters and dammed if he doesn’t.

Thailand has again reached an impasse when none of the political options, open to law makers, appear to lead to a long-term solution and economic stability.

Federation of Thai Travel Agents spokesperson, Charoen Wangananont, challenged the Minister of Tourism and Sports “to tell the truth regarding the impact from political unrest”.

He was visibly angered by minister’s comments that the tourism situation was under control despite political unrest and that this year Thailand would gain a record 15.5 million international arrivals.

Chumpol Silapa-archa

“Government ministers say anything and they still get a salary. But private sector cannot do like that and keep their jobs,” he told the media yesterday. “Saying things positive, while there is a crisis will not help us eat and pay our bills.

“If the minister sees no impact, then he should stop asking for additional budgets.”

The latest day-to-day data from Association of Thai Travel Agents for April shows a decline when compared with the same period over the last three years.

“Of 100 charters expected from China during Songkran we have just 20 charters confirmed.”

He added that three tour companies had already asked the federation to negotiate with the SME bank to extend the grace period on special loans granted since last year, for another year.

“They expect this year low season will be worse than last year,” he added.

Thai Hotels Association’s office manager, Sakkarin Chorsawai, estimates the loss in Ratchaprasong district for seven to eight hotel members at between 20 to 30% in occupancy.

According to THA president, Prakit Chinamourpong, at least 10 events that were due to be held in hotels in Ratchaprasong have been cancelled, which means a loss of around Bt30 to Bt50 million per day or Bt200 million during the four days of protest if they were not rescheduled to other hotels in the city.

Thailand Incentive and Convention Association president, Sumate Sudasna, said requests for event bookings were very rare now.

Tourism Council of Thailand president, Kongkrit Hirunyakit, said the council will revise the forecast for this year after the Songkran holiday. He said from the original forecast of 12% growth, inbound tourism could grow at best by one-digit, or just reach the same level as last year.

FETTA honorary committee, Apichart Sankary, said the government needed to negotiate a solution with protesters.

“The nation is now like an ICU patient. If the doctor refuses surgery, then the patient has to lie there and die or get another doctor,” said Apichart Sankary.

He claimed tourism arrivals this year could reach 12 million, while Federation of Thai Travel Agents estimated at best 14 million.

The crisis means that Bt500 million spent by the Tourism Authority of Thailand to boost low season travel from Europe, China and India has been wasted, he said.

The government confirmed, yesterday evening, that as many as 50,000 troops have been deployed in the capital in a peace keeping role.

There are nine Royal Navy gun boats guarding the Thon Buri side of the river, opposite Thammasat University.

Ferries have halted their short commutes across the river, although the north-south river taxis continue, but have been ordered to stay close to the Bangkok riverbank.

“Red Shirts”, who support fugitive former premier Thaksin Shinawatra, will rally this afternoon after protestors gather at pre-arranged points in the city. The action comes just two weeks after Thailand’s top court confiscated US$1.4 billion of Mr Thaksin’s assets.

Deputy prime minister, Suthep Thaugsuban, who overseas the security operations, said “full deployment” began Thursday of 30,000 soldiers, 10,000 police and 10,000 civilian volunteer forces.

“If protesters intrude into army bases or police stations, the government will use armed force to crack down immediately, as we consider that an act of terrorism,” he told reporters.

The government has invoked a tough internal security act that allows it to call out troops, impose curfews but does not ban rallies.

Checkpoints have been set up throughout Bangkok to search protesters for weapons as they travel by bus and train from the provinces in the North and Northeast, the main power base for Mr Thaksin.

The Reds, resent what they call an undemocratic government and accuse of the current administration of partiality to the “yellow shirts that took over airports in late 2008 and caused irreparable damage to the country’s economy and image.

They challenge the government to take legal action in the courts against the yellow shirt leaders in the same manner as they have singled out red shirt leaders.

To back up their calls for the government to dissolve the house and call a new election, the Red Shirts say they will bring as many as 600,000 people to the main rally on Sunday but have stated it will be peaceful.

The government believes that around 100,000 protestors will turn up for the main rally.

Prime Minister Abhisit Vejjajiva warned earlier in the week that there could be “sabotage”.

One of the main concerns for visitors and tour operators focuses on the airports. They were besieged by protesters in 2008, but government officials have stated that contingency plans in place to ensure history does not repeat itself.

However, Red Shirt leaders affirmed that the city’s airports are not a target for demonstrators..

The Stock Exchange of Thailand (SET) said it too had prepared measures to ensure that trading was not affected between March 12 and 15.