Bangkok Malls Battle for Buyers as Protests Drag On: WSJ The streets of Bangkok, seized by political protesters, have morphed into a marketplace. But the crowds are challenging major malls and retailers, forcing them to find ways to bring back buyers and ensure them of their safety as profits start to slump and rallies drag on. Days after antigovernment protests began, scores of vendors have set up pop-up shops and tables along roads still blockaded by demonstrators. During the day traffic is slow, but at night the streets transform into a festival, complete with free outdoor concerts, celebrity appearances and a host of outdoor food a shopping opportunities. While street commerce is thriving in some places, ritzy malls and hotels are having a tougher time finding buyers, as the rallies keep many shoppers and tourists away. Since protesters blockaded roads and set up camps outside major shopping malls in the Ratchaprasong area on Monday, hotel occupancy has fallen to about 30%, while many bookings for corporate conferences have been cancelled, according to the Ratchaprasong Square Trade Association, or RSTA, which represents a dozen hotel and shopping malls in the area. Normally hotel occupancy is at around 85% during this time of year, it said. During the first two days of the protest, when tens of thousands of demonstrators turned out to rally against Prime Minister Yingluck Shinawatra, business at food and beverage outlets in the area boomed. Some protesters checked themselves in for a few nights at high-end hotels so they could be close to the action. Now that the rallies have slowed, however, sales have too. Retail outlets, particularly luxury shops and clothing stores, are hardest hit, said Chai Srivikorn, RSTAs president. People are not in the mood to spend, he said. To draw buyers back, members of the RSTA have launched promotions. Malls, for example, are offering discounts of between 10% and 70%, while some hotels are reducing room costs by 40% and offering 30% discounts for restaurants. To improve visibility and sales opportunities, the association is allowing some mall vendors to showcase their goods on the sidewalk. Ratchaprasong is a strip of high-end hotels and malls that attracts 150,000 to 250,000 visitors a day, most of them Chinese and other Asian tourists. It became a key protest site in 2010, when it was occupied by thousands of Red Shirts, key supporters of former prime minister Thaksin Shinawatra, Ms. Yinglucks brother, and those opposed to the current demonstrations. The Ratchaprasong occupation in 2010 was a bid by the Red Shirts to pressure the then-government to call a new election -- in much the same way the antigovernment demonstrators are now. But six weeks after the 2010 occupation began, the government ordered the military to crack down on the protesters. About 90 people were killed and scores more injured in the clash between the protesters and security forces. Several buildings were set on fire, including parts of a shopping complex in Ratchaprasong. The occupation cost retailers and hotels in the area about 10 billion baht (roughly $300 million) and put dozens of people out of work, according to the association. Mr. Chai said it is still too early to estimate financial losses from the current protest, but the association is already taking action to make sure the same thing doesnt happen again. Last time we waited too long to see how the situation unfold, he said. This time we are more proactive and take initiatives to ensure that we can keep our business running. The current protests have been largely peaceful, so the damage is not as significant yet, said Mr. Chai. However, he said a series of shooting and grenade attacks at various rally sites in the capital is a growing concern. On Friday, unknown assailants lobbed explosive devices into a crowd of protesters marching with protest leader Suthep Thaugsuban near a major shopping complex in central Bangkok. One person was killed and at least 30 people were injured. It was the first time since rallies began that a small explosion has gone off during the day, and so close to a major center of commerce. Mr. Chai said business members in the area have beefed up security to ease safety concerns. About 1,700 security personnel, who were on hand during the 2010 occupation and have experience dealing with protest situations that turn violence, have been deployed Safety and security will be a major factor here, said Mr. Chai, adding: As long as its safe, I believe tourist will come back and the business can go on.
Posted on: Sat, 18 Jan 2014 09:17:26 +0000
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