Thailand’s Political Turmoil Eats Into Profit Of Singapore Firm

Written by Writer on Thursday, November 13th, 2008

Thailand’s Political Turmoil Eats Into Profit Of Singapore Firm

SINGAPORE, Nov 13 (Bernama) — A leading Singapore hotel and resorts company Thursday blamed the political turmoil in Thailand for the drop in its third quarter profit.

Singapore’s Main Board listed Banyan Tree Holdings Ltd, a manager and developer of premium resorts, hotels, spas and galleries, announced that profit dipped 51 percent to S$9.2 million due to the domestic politics.

Banyan Tree’s executive chairman Ho Kwon Ping said the political turmoil in Thailand which resulted in street demonstrations in Bangkok and also closure of Phuket airport over a weekend in August had affected travel to the country in the third quarter.

“This was compounded by the fact that third quarter is the shoulder season of the year,” he said in a statement.

Ho said the company was closely monitoring the Thai political situation and given the increased deterioration of the global financial situation, it was approaching the high season at the end of this year more cautiously.

However, Banyan Tree’s profit for the nine months was 17 percent ahead to S$82.9 million, largely driven by its hotel residences segment.

Some of the hotel, residences and resorts managed by the company in Thailand are Banyan Tree Phuket, Dusit Villas, and Banyan Tree Bangkok.

– BERNAMA