Business presses govt, PAD to sort out differences

Instead of worsening the conflict, both sides should be rational, he said. "Foreign investors are holding up their investment plans, while Thai businessmen are slowing their expansion," he said.

"Both the government and the People's Alliance for Democracy [PAD] should be less arrogant, while the government should focus on solving economic issues."

Private sector representatives are seeking a meeting with the prime minister to discuss the country's economic problems, he said.

Prapot Nanthawatsiri, president of Thai Soap, Detergent and Personnel Care Manufacturers' Association, said the government should pay more attention to solving economic problems rather than devoting resources to tackling political issues.

Chatchai Payuhanaveechai, a senior vice president of Kasikornbank, warned that it would not be good if the PAD

continued to protest without a clearer agenda. The latest poll showed that 70 per cent of respondents did not support the PAD.

"If PAD wants to be more widely accepted it should have a clearer position - rather than shifting from opposing the charter rewrite to the current demand for the premier to quit," he said.

Somchao Tanterdtham, president of Thai Real Estate Association, said the PAD rally had hurt people's confidence because they believed the economy would get worse and they might lose their jobs.

The Association of Thai Travel Agents (ATTA) warned that political turmoil would affect inbound tourism. "If the problems explode soon, many international tourists will not come," said Apichart Sankary, ATTA president. "Thailand is now in the peak season for tourists from Australia, New Zealand and the Middle East and we could lose these markets," said Apichart.

Andrew Wood, general manager of Chaophya Park Hotel and Resorts, said the country was facing a tough

time, with few initiatives to solve the current economic woes.

"The government is so focused on rewriting the Constitution and allowing former friends and politicians back into power. Political nervousness will impact Thailand's long-haul traffic and domestic travel," said Wood.

Perajed Suwannapasri, deputy managing director of Union Petrochemical, said every potential foreign investor is asking about the political situation.

"Two years ago, PAD wanted a new government and they got it. Now they're disappointed again because they believe Prime Minister Samak is the nominee of Thaksin. I don't know what they want," he said.

Thammasat University lecturer Praipol Koomsup suggested the government and PAD set up an intermediary group to reconcile differences to prevent the turmoil from worsening into bloodshed.

"The two sides have no chance to meet and talk so they should allow intermediaries to bring peaceful resolutions," said Praipol.