Foreign travellers are cancelling their trips to Thailand in the wake of political turmoil in the kingdom's capital, the president of the Thai Hotel Association told AFP on Wednesday.

Prakit Chinamourphong said hotel cancellations had risen significantly since the government declared a state of emergency across Bangkok on Tuesday in the wake of deadly fighting among political protesters.

"Cancellations of hotel bookings by foreign travellers have jumped following the government's declaration of a state of emergency," Prakit said.

"They have been gradually increasing since protests began at Government House," he added.

A group of anti-government demonstrators calling themselves the People's Alliance for Democracy have been occupying government offices for a week.

They clashed with pro-government protestors early on Tuesday morning leaving one dead and dozens injured — leading to the emergency declaration hours later.

Chinese authorities issued a warning against travel to Thailand on Wednesday morning. Shortly afterwards a Chinese tour group cancelled a booking for 450 rooms for three nights in November, Prakit said.

"That one group's cancellation alone has lost us around 6 million baht ($176 000)," he said, adding that hotel occupancy in northern Chiang Mai had also been affected, dropping from an average 50 percent in low season to 30 percent.

"We are entering high season period in October. If the political turmoil continues it will damage our business and it will take years to recover," Pradit said.

AFP