Thai Blast Strikes Blow To Tourism, Pillar Of Ailing Economy

BANGKOK (AP) — The bomb blast that ripped through a Bangkok shrine, killing 20 and injuring dozens, is also certain to take its toll on tourism, the one bright spot in Thailand's sputtering economy. The Southeast Asian country's tourism industry has expanded strongly over recent years, driven by rising numbers of Chinese tourists, which has helped offset the drag on growth from a decade of political instability. In the bombing's aftermath, some foreign travel agencies cancelled group tours and the baht sank to a six-year low. The explosion at the shrine, which is popular with Chinese visitors, is likely to dampen their enthusiasm for Bangkok as a tourist destination. "Major constraints" on expansion for the rest of the year include weak global growth amid China's slowdown and the depreciation of the yuan, which Beijing moved to devalue last week, sending many other Asian currencies lower. The bomb went off Monday evening at the Erawan shrine at a busy central Bangkok intersection in an affluent neighborhood with upscale shopping malls and hotels such as the Grand Hyatt nearby. Attendants at the Hindu shrine speak fluent Mandarin and Cantonese, attesting to its popularity with ethnic Chinese, which may stem partly from tales recounted by Hong Kong and Taiwanese movie stars and pop singers to fans of how their wishes were granted after paying a visit. Hong Kong took stronger action, issuing a red travel warning for Bangkok, the second highest of three levels, prompting travel agencies in the Asian finance hub to cancel all package tours to Thailand until the end of the month.