Thailand is plotting its return from the tourism cold now that control and order has been restored in Bangkok. The government estimates US$1.5 billion has been lost in tourism revenue following two months of political upheaval, whilst many fear that Thailand’s image as the “Land of Smiles” has been shattered by the violence that left 88 dead and 1,900 injured.

The curfew in Bangkok has been extended by a further three nights as Thai troops attempt to storm the anti-government protesters’ camp and weed out the ringleaders. The army insisted the violence was now under control following yesterday’s outburst which claimed a further 14 lives.

Bookings for resorts in Phuket have sunk to just 15 percent for June as the tourist industry across Thailand suffers the fall-out of the violent protests in Bangkok. The global coverage of the street battles has sent the country’s tourism industry into freefall, despite the destination remaining largely peaceful and few resorts outside the capital affected.

The British Foreign and Commonwealth Office has rescinded advice advising against all but essential travel to Thailand. However, travellers are still urged to avoid Bangkok, with protestors still occupying swathes of the capital.

Hundreds of tourists remain stranded in the basement of Bangkok airport as airlines struggle to clear the backlog caused by the ash cloud crisis. The recent spate of civil disturbances also makes it safer to remain in the airport rather than staying at local hotels.

Thursday’s explosions in Bangkok have bought weeks of simmering internal discontent to international attention. But with large parts of the country untouched by protests and local tourist chiefs urging visitors not to alter their plans, Chris O’Toole here examines how dangerous the country really is.