During the school break in March and April, many Japanese travel to Thailand. Japanese tourists number almost 1 million per year.
"We will see negative impact on both outbound and inbound travel," said Anake Srishevachart, president of the ThaiJapan Tourism Business Association (TJTBA). However, he said it was too early to estimate the size of the impact.
Yesterday China, the Philippines, Indonesia and Papua New Guinea were bracing for possible tsunamis after the 8.9magnitude earthquake struck off the northeast of Japan, sending waves crashing through coastal towns.
Tsunami warnings were issued in the Philippines and Taiwan, after the northeastern Japanese city of Sendai, 300 kilometres north of Tokyo, was struck by the waves.
In Thailand, authorities warned that the tsunami could reach the southern provinces of Narathiwat and Pattani today.
Surin Pitsuwan, secretarygenerฌal of Asean, said the earthquake in Japan would affect investment in Thailand and Asean as Japan had previously been planning foreign investment because of the strength of the yen.
The disaster will weaken the curฌrency, forcing the Japanese government to review investment outside the country. Japan will need the funds to help its own population and repair the damage caused by the quake and tsunamis, he said.
The number of Japanese tourists expected to travel to Thailand will also fall significantly, he said.
Asean will convene an urgent meeting to help Japan with relief and recovery efforts, he added.
Thai stock investors reacted negatively to disaster, selling off shares and putting downward pressure on the composite index.
The Stock Exchange of Thailand lost 13 points when afternoon tradฌing resumed. The index gradually moved up again, but by 3.19pm the index had shed 11.93 points or 1.17 per cent to 1,007.29 points.
The Japanese yen slumped immediately after the quake made headlines. It weakened against 15 major currencies. At the time of writing the yen was at 83.30 against the US dollar.
Anake said the disaster would hit Thai tourism to Japan.
About 20,00030,000 Thais visit the upper part of the country, few compared with the southern region, he said.
According to the TJTBA, 5001,000 Thai tourists visit Japan per day, with the figure normally rising during the school break and Songkran festival.
"I have asked staff at my company, Thai Sin Express, to stand by at the office and keep communicating with partners in Japan," he said.
Anake believes the incident will damage the tourism sector in Thailand, as Japan is one of the country's biggest markets with nearly 1 million visitors a year.
Charoen Wangananond, president of the Association of Thai Travel Agents (ATTA), said the association was calculating the damage from the disaster. He was confident the industry would be hit hard.
According to Thai Airways International (THAI), the airline flies to five destinations in Japan with a total of 10 flights per day. Flights serve Narita, Haneda (Tokyo International Airport), Nagoya, Kansai (Osaka) and Fukuoka.
The airline has suspended servicฌes from Bangkok to Narita and Haneda airports, both of which serve Greater Tokyo. More than 200 THAI passengers remain in the Japanese capital.
Chaiyaporn Nompitakcharoen, head of tactical research at Bualuang Securities, said the earthquake would not hurt Thai market fundamentals. However, it would boost food export sales to Japan, as well as outsourcing orders for electrical appliance manufacturing.
Boonlert Siripatvanich, chief executive officer of Ausiris, said gold prices could fall as well, as after natural disฌasters investors prefer to hold cash over other types of assets. In war, gold is a safe haven, he noted.
Teerana Bhongmakapat, dean of Chulalongkorn University's economics faculty, said economic damage from the disaster would depend on whether aftershocks hit Tokyo and other big cities.
"Damage to the economy may be limited but the cost in human lives could be much higher," Teerana said.
Commerce Minister Porntiva Nakasai ordered all Thai Trade Centres overseas to assess the effects of the disaster on export businesses. The information will help the ministry provide urgent assistance to companies affected.
Porntiva has also ordered the centres to monitor political unrest in the Middle East closely in preparation for the launch of measures that will encourage Thai exports.
Vuthichai Duangratana, deputy directorgeneral of the Department of Export Promotion, said Thai Trade Centres in Tokyo, Osaka and Fukuoka were asking Japanese importers and Thai exporters how they had been affected. Japanese importers may be unable to load goods at ports, affecting payment of Thai exporters.
The ministry will ask the government for financial support to ensure cash flow for Thai exporters during the disaster.
"Japan has to import more goods to rescue its people, and other countries may have to provide assistance as well," he said.
Phongsak Assakul, vice chairman of the Thai Chamber of Commerce, expressed concern about Japan's purchasing power, as its government would now focus on recovery of the country and the population's mental wellbeing. For the latest updates PRESS CTR + D or visit Stock Market news Today
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