Is terrorism a threat to economy? Just ask Thailand

While terrorism remains a threat to global safety, many investors and traders are less bothered of its economic impact.

Since most of the bombings, beheading, kidnapping takes place across Middle East countries such as Syria, Iraq, African countries such as Nigeria, Ghana and only in small scale in developed economies many traders are oblivious to the cost of terrorism in economic term.

Other than that most of the focus on impact of terrorism over oil.

However recent shoot out in Tunisia beach resort and this week's bombing in Thailand reveals that could be dear for an economy that relies heavily on Tourism.

As of the latest information a man wearing yellow T-shirt is suspected to have left a bomb in near a popular Hindu shrine, a tourist attraction that killed at least 22 people including local and foreigners and injured more than 100.

While it is easy to bomb terrorist sites across a country (such as Islamic state in Middle East), authorities are waking up to the fact that it is extremely difficult to tackle lone wolf attacks such as these.

For Thailand, a country that relies heavily on Tourism, which contributes more than 10% to GDP is likely to face challenging times tackling such incidents. The country last year suffered heavy damage as the country faced military coup.

Thai baht which is down more than 1% in last two days is likely to suffer further as above incident is likely to hit tourists' psyche hard.