Oct. 10--The US financial crisis on Wall Street is hitting the areas where foreign executives stay and dine in Bangkok and has tipped demand for hotels, luxury restaurants and serviced apartments into a descent set to last into next year.

Travel-related businesses have felt the pinch of the global financial crisis, which has sunk stock markets around the world over the last two weeks. Domestic political conflict, which peaked a few days ago with two deaths and hundreds of injuries, is also keeping tourists away from Thailand.

Tourism-related executives now say they must adapt to the situation not to achieve growth but simply to survive.

Wiwat Tangjitkobboon -- group director of Kasemkij Co's Kameo and Kantary Group -- said his group's serviced and non-serviced apartments in Bangkok were facing hard times. Occupancy of the group's Bangkok projects has fallen by 30 percent since the start of this month. Its eight properties in the provinces have also seen occupancy dip by 5 percent year-on-year.

"Personally, I believe everyone has been affected by these problems, particularly hotels and the tourism business," said Mr Wiwat. "I am strongly confident we will see the worst effects next year."

He added that foreign companies are withdrawing staff from Thailand to reduce costs and this trend would intensify next year. He forecast that the occupancy rate for both hotels and service apartments in Bangkok would drop by at least 20-30 percent next year.

"As headquarters cut costs some expatriates will look for new accommodation at a lower price. This will cause a price war in this business," he said.

Mr Wiwat said his group must look at new markets such as Middle East residents travelling to Thailand for check-ups and airline passengers waiting for connecting flights.

In addition, the company must meet consumers' requirements by introducing new special packages, he said.

Jennifer Cronin, vice-president for sales and marketing of Dusit International, said Thailand's inbound tourism will face one of its toughest tests ever over the coming months -- and it will be those companies that are flexible and can adapt fast that will prosper.

Ms Cronin said that Dusit's advance bookings were much weaker than last year. But she added that the company has already been working on new markets, such as the Middle East and India, that are less sensitive to US and European financial problems and it has met with great success.

The company is also facing the challenge with the "Triple Nights Delight" promotion within the domestic market in October. She said this has already secured almost 400 room-nights and that more than 75 percent of the guests were first-time visitors.

Gianmaria Zanotti, owner of the high-end restaurant Zanotti Il Ristorante Italiano, said he was concerned about falling consumption in the wake of global and local economic slowdown.

"I believe that everyone will be affected by this problem. At this time I can't tell how much damage there will be," he said.

He said his restaurant has been affected only slightly so far, but another of his restaurants at Suvarnabhumi Airport had seen sales fall 30 percent year-on-year in September.

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