Thai Military Relaxes Curfew to Boost Tourism

Industry Groups, Foreign Investors Hopeful Domestic Economy Will Get Jolt It Needs


BANGKOK—Thailand's ruling military on Tuesday eased its curfew to minimize the impact on the public and tourism, as some industry groups and foreign investors expressed optimism the junta will quickly take steps to reverse the Thai economy's slide after months of political gridlock.

The ruling military shortened its overnight curfew to four hours, from midnight to 4 a.m., six days after seizing power May 22, according to its statement. The relaxation came after state tourism officials reported a 20% fall in the number of visitors in recent days at a meeting with Adm. Narong Pipatanasai, commander of the Royal Thai Navy, who oversees tourism and social ministries.

The military's curfew has hurt consumer spending, as shops, malls and gas stations were forced to close early.

Amid early signs that normalcy is returning to the country, the military also said it is preparing an economic road map to bolster the battered economy after seven months of street unrest and outbursts of violence, which have hampered growth, consumer spending and investment.

Ten advisers, half of them retired or active military generals, were appointed on Tuesday to advise the military junta on economic, legal and security issues. Economist Pridiyathorn Devakula, who served as Finance Minister in the interim civilian government installed by the military after the 2006 coup, serves as an economic advisor. Somkid Jatusripitak and Visanu Krue-ngam, who held top Cabinet portfolios under ex-leader Thaksin Shinawatra, ousted by the 2006 coup, will advise on foreign affairs and laws.

The Thai economy contracted 2.1% in the first three months of this year from the previous quarter. The annual output is expected to be below last year's reading of 2.9%. The military said Monday that it is trying to hit at least 2% annual growth this year.

Some industry groups and foreign investors said Tuesday they were hopeful that the domestic economy will get the jolt it needs while they have the junta's attention on boosting growth and bringing stability to the Southeast Asian nation.

"It's certainly unfortunate that the state of Thai politics led to a coup, but if the junta puts focus on the economy, it may help reverse the deterioration seen since the political protests started last year," said Darren Buckley, president of the American Chamber of Commerce in Thailand.

Toyota Motor Corp., which briefly slowed production last week in the wake of the coup, said Tuesday that it had resumed day- and night-shift operations at its plants in Thailand.

Political turbulence in Thailand is one of a number of political uncertainties the company faces in Asia's emerging markets, said Nobuyori Kodaira, executive vice president of Toyota, citing elections set for this year in Indonesia and next year in Myanmar, following the voting this month in India.

"It is not just Thailand," Mr. Kodaira said in a briefing with journalists in Tokyo. "After the regimes change, the policies are likely to change as well…and we who do business in this environment will also experience this impact."

Representatives from the Thai private sector said they feel positive about the military's steps to tackle urgent economic problems, such as paying rice farmers, speeding up budget spending and clearing the backlog of applications for investment projects.

"We see that the money paid to farmers will stimulate rural spending and consumption two- or threefold," said Vichai Assarasakorn, vice chairman of the Thai Chamber of Commerce. "The military is moving in the right direction."

The private sector also supported the junta's plan to reinstate some of the infrastructure projects, which will boost the country's long-term competitiveness, Mr. Vichai said.

But the military also needs to take steps to restore confidence in the economy and lay out a clear plan to install a government, said Marc Spiegel, vice chairman of the Joint Foreign Chambers of Commerce in Thailand, which represents 29 chambers of commerce with 8,500 member companies.

Delaying an election or jeopardizing the country's integration with the regional economic community set for next year could risk bringing a setback to domestic economy, Mr. Spiegel said.

"You have all these companies waiting to invest, and the longer this goes on, the higher the probability they're going to pull that investment," he said.

Army chief Gen. Prayuth Chan-ocha, who heads the military junta, said Monday an election and interim cabinet are "in the plans" but gave no definite timeline. Over the weekend, Gen. Prayuth himself met with investors, hosting a delegation from the Japanese Chamber of Commerce, whose members invest about $9.8 billion a year in Thailand, to reassure them that the new military regime would attempt to shift the economy into a higher gear.

Among other things, the members asked for a speedy completion of stalled flood-control measures as well as steps to get the investment-approval process functioning again.

Almost daily pop-up protests against the coup could pose a challenge to the military's attempt to bring about order and stability, even though the protests remain relatively small. Gen. Prayuth on Monday warned that the military would take tough action against the protesters and those who violate martial law.

On Tuesday, Chaturon Chaisang, ex-education minister under the government deposed in Thursday's military coup, was taken out of the country's foreign press club in Bangkok Tuesday by camouflage-clad troops.

Mr. Chaturon made a surprise speech at the Foreign Correspondents' Club of Thailand after hiding since the putsch. He was one of the more than 200 people that have been summoned by the military. Most members of the ousted administration have already been detained.

—Wilawan Watcharasakwet in Bangkok and Phred Dvorak in Hong Kong contributed to this article.



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Thailand: Is the party over for now? The effect of the curfew on tourism

As the military relaxes the nightly curfew imposed following last week's coup, Tom Vater reports on how strictly it is being enforced in Thailand's party hot spots


Since the military coup on May 22, Thailand has been under a strict curfew. Initially, everyone was ordered indoors from 10pm to 5am. The curfew has just been relaxed however – allowing tourists and locals to stay out in the evenings – as long as they are off the streets between midnight and 4am.


Naturally, visitor numbers are down and the industry is suffering. Tourism Council of Thailand (TCT) President Piyaman Tejapaibul this week called on the military to lift the curfew entirely in tourist hotspots around the country. And while evidence suggests that this has already happened in some tourist areas, albeit highly informally, it remains to be seen whether restrictions will relax further over the weekend, and whether rules affecting holidaymakers will become more flexible or tighten up.


Bangkok, night life capital of the world, has been feeling the squeeze the hardest. Five-star hotels are offering special rates for tourists and promotions to entice locals to spend the night after coming for drinks or dinner, and avoid rushing home for curfew.


The city usually comes to life at night and glows with hedonistic abandon, but for the past few days, the Thai capital’s usually packed concrete canyons have been largely deserted, its countless bars, clubs, shops and restaurants closed in line with the military’s orders. ...


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