A recent report by the Bank of Thailand (BoT) suggests the blockade and closure of Bangkok´s two airports by the People´s Alliance for Democracy from 25 November to 2 December 2008 could cost the country upto 290 billion baht in lost revenues.

The report from the BoT is based on a period of ten days from 25 Nov to 4 Dec as full services only recommenced 5 Dec.

This works out to be approximately 3% of GDP, according to the report.

The airport closures have had ongoing impacts on Thailand´s tourism industry with visitor numbers  nationwide considerably down. Following the traditional Christmas and New Year spike in numbers, according to hoteliers the ´high´ season is looking bleak. This coupled with the global economic situation sees Thailand facing challenges ahead.

Despite the low visitor numbers and slowing economic growth, the Bangkok-based PLC Preuksa Real Estate´s chief executive officer Thongma Vijitpongpun, remains confident, with 15 new residential projects planned for 2009 as well as a project in India and ongoing research into the Vietnam and Chinese real estate markets.

In Phuket, confidence remains shaken. While supply continues to increase with a number of new launches in 2008 and more on the cards for 2009, demand is waning. The ultra-luxury end of the market appears to be a beacon of light with reports of continuing strong interest from cash buyers, though slower-than-usual closing of sales, where branded resort villa developments are becoming the choice of wealthy buyers.

Media reports and market analysis show 2009 to be a year of challenges. Thailand´s resort real estate markets are dominated by cash buyers, which while likely to show a dip in the short-term, may end up being a blessing in disguise for the sustainable growth and development of these markets. Bangkok is driven by domestic consumption which will be sensitive to government policy and domestic economic growth.

source : www.property-report.com