By Nirmal Ghosh

Ms Rosna Singjirakul runs a travel agency in Bangkok and often had lunch in the Holiday Inn hotel in busy Silom Road, just up the escalator outside her office.

Not any more.

The 49-year-old now eats out only about once a week, and avoids expensive restaurants. All her friends have similarly cut back.

'People have become cautious because we do not know what is in store,' she said.

'Now, I don't buy anything that is not absolutely necessary. I have cut back on travelling too.'

For September's Jewellery Fair, 70 of her clients cancelled when they heard of the political unrest in Bangkok.

That was before the global financial crisis struck. Today, Thailand is lurching under the double whammy, and Ms Rosna's business volume has fallen by around 60 per cent.

'Ten years ago, when we had the political conflict, there was no recession in Europe.

'But now, there is a big recession in the West and we can't rely on their spending power. Even Thai people are cutting down on their expenses, and everyone is spending money sensibly.'

She added: 'It's a big hit for the travel industry. I'm sure some of the smaller hotels have only about 30 per cent occupancy, the larger ones probably 50 to 55 per cent.

'Since my agency is based in a hotel, when occupancy rates drop, we're affected too.'

Ms Rosna, who is single, supports her 80-year-old mother and is trying to figure out ways to diversify her business.

For now, most of her business is inbound. She has been working out budget packages, putting clients up in guest houses on tailor-made vacation plans so that they feel they get a good bargain.

She is also devising other strategies to attract people, marketing Thailand as a destination for wedding parties and school excursions.

But it is an uphill battle in the current environment. Besides, outbound travel is not picking up, given the cautious mood.

'Thailand has to regain the confidence of tourists. It will take some time to rebuild our international image even though everything is normal here,' she said.

This article was first published in The Straits Times on November 02, 2008.