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The swanky international airport at Bangkok is a gateway to a new Thailand

In the last two decades alone, Thailand has been hit by military coups d’etat, the AIDS pandemic, SARS, bird flu, the May 1992 political crisis, the 1997 economic crisis, the tsunami, the disturbances in south Thailand, and clashes with Cambodia.

The recent A(H1N1) flu outbreak could make tourism contract by three-to-four per cent, causing the country to lose up to 200-billion baht (Rs30,000 crore), of tourism revenue this year.

Add to this the internal political change, the challenges of economic development, and preserving the delicate ecological balance. In each case, Thailand has been able to reach into its social, cultural, and spiritual psyche, to deal with the issues.

The past local crises and global geopolitical events like the Iraq war, 9/11, the financial crises, have all affected travel and tourism - Thailand’s largest service sector, the largest employer, and largest foreign exchange earner.

It is a complete turnaround from the 1980’s and 1990’s, when Thailand was the beneficiary of a diversion of tourism from other competing destinations such as the Philippines, Indonesia, and Sri Lanka, as they experienced internal upheavals.

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In those days, Thailand was comparatively calm and able to mount scintillating marketing campaigns to position itself as an ideal alternative destination. Today, other regional countries (Malaysia, Vietnam, Macau, and Singapore), are calm and now pose a bigger competitive threat than ever.

The closure of Bangkok airport last November-December did significant damage to visitor arrivals in the high season which normally covers the October-March period, and includes peak travel periods like Chinese New Year in February.

Now, even the low season is likely to be gutted by the latest economic crisis. The head of the Tourism Council of Thailand has been quoted as estimating that the Thai travel and tourism industry will incur a loss of approximately 200-billion baht.

Most hotel general managers are pessimistic about a full recovery for tourism in Thailand by the year-end. Most also believe 2010 is unlikely to be a great year for Thai hotels as other destinations are competing with great value and lower prices.

Further, the meeting and incentive sector (MICE) has been hit hard by local political turmoil; as a result, the Asian corporate groups are the worst affected market.

International corporations concerned about organising conventions and events here may shift to locations they consider safer, including Singapore, Kuala Lumpur, Hong Kong, and Shanghai.