Even by these standards, however, Thailand’s proclivity for civic turmoil is peerless.
Indeed, few countries can match Thailand’s record of 21 coup attempts, nearly half of which have been successful, before the toppling of Thaksin Shinawatra’s Government in 2006.
Indeed, few countries can match Thailand’s record of 21 coup attempts, nearly half of which have been successful, before the toppling of Thaksin Shinawatra’s Government in 2006.
So, in many ways, the recent unrest wracking the country evoked a strong sense of déjà vu. But with the global financial crisis in full swing, now is an especially dangerous time for Thailand to fall into disarray. The country depends on tourism and exports, both of which will have suffered big hits from the airport closures. Even before the airport closures, though, exports and investment were suffering due to the global economic downturn and the long-running protests.
The 2009 outlook is grim. The recent political turmoil has shattered business confidence and it’s going to take a year at least to recover. There are suggestions that even two per cent growth will be an achievement next year as the fallout from the airport drama becomes evident in the first quarter - Thailand’s high tourist season. Not only were more than 100,000 Western travellers already in Thailand immediately stranded, all incoming planes of fresh holidaymakers were cancelled. The problem is one of confidence.
Media images all over the world showed forlorn tourists sleeping on baggage trolleys, protest militia members armed with wooden stakes, and police seemingly overwhelmed by the lawlessness.
The MICE (meetings, incentives, conferences and exhibitions) business too has been savaged, because the risk insurance will now be astronomical and organisers will look to more secure venues in Kuala Lumpur, Singapore and Vietnam.
How quickly Thailand bounces back this time remains to be seen. The Thai tourist industry and the wider economy have recovered from turmoil in the recent past. Despite the impact of the tsunami, overseas visitor numbers climbed, and the economy proved equally resilient following the army coup in 2006.
The Tourism Authority of Thailand, unfortunately, shot itself in the foot this time by recently proclaiming Thailand a safe destination, suggesting that if travellers avoided its hot spots, all would be well.
A crisis need not mean the end to a brand - but not everything, of course, can be solved by a good-looking campaign, particularly when external, uncontrollable factors play such a critical role.
But, at the very least, Thailand must act quickly to regain its international image. It should do this through a sustained, candid and co-ordinated PR communications campaign aimed at all stakeholders - one that involves the country’s hotels, airlines and even the airport authority itself. The strategy, after all, is simple enough. Brands in trouble need to invest if they are to rebuild fraying emotional ties.
Honda is cutting its losses and withdrawing from Formula One. It’s a devastating blow to the sport; in the current financial climate, chances of Honda finding a buyer willing to fork out in excess of US$290 million per year are slim.
With its sales and profits battered by the global financial crisis, Honda’s exit is perhaps unsurprising. The brand has the largest budget in Formula One bar none, more than the leading teams on the grid, Ferrari and McLaren. How do you sustain investment like that in a downturn?
Even so, the pullout by one of the world’s biggest car manufacturers will undoubtedly send shockwaves through a sport renowned for its extravagance and financial muscle. The question now is what it could mean for fellow Japanese giant Toyota, which, like Williams, is reported to be in serious financial difficulties.
The implications are clear: no sport sponsorship is immune to the global economic downturn.
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