Hotel occupancy rates have plunged 10 to 15 percent nationwide, including as much as 40 percent in some Bangkok hotels, from January to March compared to the same period last year, industry officials were quoted as saying.

Secretary of the Thai Hotels Association Prakit Chinamornpongalso warned that the kingdom would suffer major losses over next month's popular Thai new year celebration known as Songkran.

"Overall, we anticipate roughly 100,000 visitors could disappear during Songkran," he said in the Bangkok Post.

Asian visitors during Songkran were expected to be cut by half, the paper cited a travel agent as saying.

Concern over Severe Acute Respiratory Syndrome (SARS) has led to flight cancellations by several airlines to Asian countries affected by the virus, including Thialand, where a handful of suspected SARS cases have been reported.

Overseas visitor markets showing major declines include Japan, the United States, Europe and Israel, Prakit told the English-language daily, adding the number of Israelis traveling to Thailand's hilltribes region "has dropped to zero" since war concerns kicked up in the Middle East.

Prakit was not immediately available for further comment.

Quarterly figures for the tourism industry as a whole have yet to be released.

The revelations douse the optimism fuelled by last year's record figures, which showed tourist arrivals jumping 7.33 percent to 10.8 million despite a regional terror alert after the deadly Bali bombings.

Tourism earnings for 2002 are projected to total 8.5 billion dollars, up 11.5 percent on 2001.

WAR.WIRE