With House dissolution looming, tourism operators have warned the government not to rush into the controversial casino legalisation attached to the Entertainment Complex Bill, as it carries a high risk of provoking street protests and jeopardising the fragile tourism industry.
Political instability is occurring at an inopportune time, as the border dispute with Cambodia remains unresolved.
Thienprasit Chaiyapatranun, president of the Thai Hotels Association, said with or without coalition partner Bhumjaithai Party, this government is expected to have a short tenure, as political analysts believe the House might be dissolved within the next year, before its four-year term, attributed to growing rifts between coalition parties.
He said the private sector, particularly the tourism industry, would like the government to take careful steps to maintain domestic tranquility, addressing the sluggish economy and the border conflict with Cambodia rather than pushing ahead with plans that would dissatisfy the public or create opposition.
"It's helpful that the government is accelerating the 157-billion-baht stimulus budget," said Mr Thienprasit.
"However, given the government's fragility, quickly pushing the Entertainment Complex Bill into the next parliamentary session would create more risks for the country as this project has consistently drawn a lot of criticism and opposition."
As the ruling Pheu Thai Party recently announced the Entertainment Complex Bill doesn't need a referendum, he said the lack of public consensus would weaken the prospects for this project.
"The private sector cannot fully support it if we cannot see the final draft," said Mr Thienprasit.
"If the government decides to rush this project, they should let the public voice their opinion via a referendum."
He said the tourism sector has lacked strategy, having to start over with three new tourism and sports ministers in the past three cabinet reshuffles.
The ongoing political tug of war might affect the entire economy, as ministers are more focused on power bargaining than on performing their duties, said Mr Thienprasit.
Sisdivachr Cheewarattanaporn, an advisory chairman at the Association of Thai Travel Agents, said the political situation has weakened economic confidence.
He said the business sector and the public are weary of politics that prioritise self-interest over the public interest.
"We are dealing with more serious issues, such as the border dispute with Cambodia," said Mr Sisdivachr.
"Yet the government still wants to spend time on internal political conflicts rather than the national interest."