Protest causing mass disruption in bustling Bangkok

BANGKOK (Reuters) - Thai stockbroker Sukit Udomsirikul is one of thousands forced to move to a backup office during weeks of protests in Bangkok, a trend that is cutting deep into Thailand's economy and testing the capital's patience.

"It had become such a hassle going to the office," said Sukit, a 40-year-old senior assistant managing director at Siam City Securities, one of at least five brokerages located in an district controlled by tenacious anti-government protesters.

Sleek office towers, embassies, international schools, luxury hotels, expensive apartments and half a dozen upmarket department stores pack the 3 sq-km (1.2 sq-mile) stretch of central Bangkok occupied by the red-shirted protesters since April 3.

Their refusal to call off their demonstrations on Tuesday threatens to worsen one of the biggest and costliest dislocations of workers and residents in Bangkok history.

"We started moving out two weeks ago, realizing these roadblocks of rubber tires and bamboo spears might be just a little too much for us," said Sukit, echoing a comment made workers and residents across the Rachaprasong district.

The mostly rural and urban working-class protesters targeted the area as a symbol of wealth out of reach to rural masses in a country with one of Asia's widest income disparities.

The first month of their stand-off against the government and wealthy business elites they accuse of meddling in politics cost firms in the area $160 million, said Chai Srivikorn, president of the Rachaprasong business association.

Some 4,000 companies employing 60,000 workers have been forced to close their doors, relocate or endure strict security checks and months of cumbersome commutes, according to data provided by Thailand's Labour Ministry.

Retailers at Central World, Southeast Asia's second-largest shopping mall, have lost $37 million since the protests began. Its operator, Central Pattana PCL, will miss a target of 14-15 percent revenue growth this year because of the unrest, its Chief Financial Officer, Naris Cheyklin, told reporters on May 6.

RESIDENTS FLEE

A reconciliation process proposed by the government, which involves an early election on November 14, has been officially accepted by the protesters, although red shirt leaders say they won't budge until they get a better deal.

That means the ritzy intersection normally flooded with tourists and wealthy Thais will remain in the hands of thousands of protesters who have given it the look and feel of a rural village fair, with lively music and streets adorned with tents, food vendors and market stalls.

But residents and the mostly middle-class workers are not quite feeling the festive mood.

"It's inconvenient having to work outside the head office," said Montree Sornpaisarn, chief executive of Kim Eng Securities, Thailand's largest brokerage. Some of his staff have started working from home, with many executives relying on video conferences and telephones for their meetings.

"We want to move everyone back once this is over," he said.

That might not be soon.

The five-star hotels are almost empty and the mainly expatriate and well-off Thai residents of posh condominiums have long fled, unable to cope with blaring round-the-clock country music and rousing speeches that draw deafening cheers at night.

Uncertainty and political violence continue to dampen the outlook for Southeast Asia's second-biggest economy, badly damaging a tourism industry that employs 2 million people and supports 6 percent of Thailand's economy.

The slowdown in gross domestic product growth in Bangkok alone -- a city of 15 million people -- could trim up to 0.6 percentage point off Thailand's overall growth, economists at U.S. investment bank Morgan Stanley estimated last month.

Other economists see similar damage.

"We estimate that if the political protests continue to weigh on the tourism sector, and it takes an year to recover, it could potentially shave off 0.5-1.0 percentage point of GDP growth in 2010," said Rahul Bajoria, a Singapore-based economist at Barclays Capital.

Multinational companies including Nestle SA and Philip Morris International have moved offices temporarily, and Singapore retailer FJ Benjamin said on Tuesday it might shut one or two of the three stores -- two Celine and one la Senza -- it has in Bangkok.

"Thailand has been an unfortunate disappointment," said the company's CEO, Nash Benjamin. "We don't see any light at the end of the tunnel."

Some upscale department stores have reopened and are fighting to lure Bangkok's frenzied shopaholics with attractive discounts and grand sales.

At least five city schools near to the protest site have decided to delay the beginning of the new term from May 17 to June 1, affecting about 2,700 students, and plans are in place to move classes to other schools if the demonstration drags on.

With the resilient red shirts showing no signs of quitting, Bangkok residents in the "red zone" have no choice but to accept the protests and make alternative arrangements.

"We're now renting a private villa," said Janjira Pinthongkum, a resident in the Rachaprasong area. "It's just temporary, but there's no place like home." (Additional reporting by Kevin Lim in SINGAPORE; Editing by Martin Petty and Alex Richardson)