Tope

Hi, The topic of global and climate change was an umbrella topic, and we were told to choose a more defined issue underneath that title. We also felt that the aid provided isn't really the issue. They ought to provide more practical help. Thanks for your comments. Tope

Hello, I'm part of a group of students at the Erasmus University Rotterdam in the Netherlands. We've written this piece about international trade and investment and global and climate change, with regards to the recent tsunami disaster. We would really appreciate any comments or views that you may have. Thank you very much. Tope In addition to giving Thailand financial support, foreign governments should look to the long-term situation of Thailand’s economy, specifically with regards to the tourism industry. The results of the tsunami of December 26th have been varied, but mainly disastrous. For one, 146.000 people have died. The tsunami is not entirely to blame for these deaths: a proper warning system would have prevented many people from being caught by surprise and would have enabled the relevant authorities to prepare for the coming catastrophe; and, also the absence of a natural coastline caused the waves to strike faster and harder. The Thai Tourism Board predicted that 1.2 million foreigners are likely to cancel their trips because they feel it is unsafe and they fear there will be health risks as well. There has been an estimated cost to the tourism industry of US $770 million and this might go up to US $1 billion. Furthermore, there are roughly 200.000 people unemployed and unfortunately, 700 tourists have been reported dead. The Commissioner of Development for the EU, Louis Michel, feels that the financial aid should not be a “…beauty contest…”, but should have some plan behind it and there should be promises that lead to efficient spending. The Foreign Minister of Australia, Alexander Downer, has pledged AUS $706 million. He feels that Australia has special responsibilities to its neighbouring countries. Thailand’s tourism sector accounts for approximately six percent of the country’s gross domestic product. Moreover, it is estimated that the growth of the GDP will decrease by 1,5 percentage points, assuming that the tragedy subtracts 25 percent of business during the first quarter of this year. The case of the Singaporean airline, Tiger Air, illustrates this issue. The airline is currently reviewing its flight schedule following the tsunami calamity. Tiger Air is a fledgling low cost airline that has Phuket as one of its main destinations. The board of directors of the airline predicts that most of Asia-Pacific’s budget airlines will fail. This being due to the increase in prices for jet fuel and the current decline in demand for travel to Phuket. The EU initially pledged €23 million, and now they have sent an estimated €1.5 billion. As aforementioned, Australia pledged AUS $760 million. The United States has promised US $350 million and there are rumors that they will even raise this to an amount of US $650 million. The prime minister of Thailand urges foreign countries not to dissuade tourists from visiting the country. In addition, he feels that aid for the disaster should come from local authorities as well. Following this, there will be a meeting of Thailand’s governing body, to be held on the 28th and 29th of January regarding the tsunami warning system. It has become clear that a large amount of money has been made available by foreign governments and local authorities to rebuild and invest in the future. However, the most important issue, specifically for Thailand, is that not only money is invested by foreigners, but foreigners themselves should invest by supporting the tourism industry even more than before. This is why the financial aid that is given should not only fund the rebuilding of houses, hotels, and infrastructure, but there should be a detailed plan on how attract tourists. It is important for these foreigners to feel safe and be protected from such alarming ruin ever again.