Most tourist destinations are far from the troubled south

But there is concern the attacks will hit the country's tourism industry - a mainstay of the economy.

"There aren't too many tourists in the south. Normally they are packed in Phuket," an official from the Thai embassy in London told BBC News Online.

"But there may be a psychological impact," he said.

Tourism accounts for 6% of Thailand's gross domestic product (GDP).

Even before the attacks, the sector was suffering because of the Sars outbreak in Asia and the war in Iraq.

Last year 9.7 million tourists visited Thailand, whereas in 2001 and 2002, the country had seen many more than 10 million visitors a year.

Travel warnings

With tourists spending on average �52 a day, it is a decline the government wants to halt.

There is no indication that the security of our guests is endangered Thomas Cook spokesman

Security has been stepped up in the south and tighter controls put in place at the border with Malaysia since violence erupted last summer.

The government has blamed some of the violence on drug traffickers.

But already the US, Britain, Australia and Germany have issued travel warnings to nationals considering travelling to the south.

British diplomats said they would be "taking action" as a result of Wednesday's attacks.

According to the UK's Foreign and Commonwealth Office, there is a threat to British and other Western targets from terrorism and vigilance is required in public places, including tourist resorts.

The southern region, home to the country's Muslim minority and a decades-old separatist struggle, is somewhat off the backpacker trail.

But in recent years, some tourist resorts have been developed in the area.

"The fighting was 10 to 20 kilometres away... we are scared," said one employee at the upscale Pattani Hotel in Pattani, where a battle took place between police and gunmen trapped in a mosque on Wednesday.

Travel agent Thomas Cook said it was informing its local agents of the attacks.

But it said the violence, which has gone on for several months now, has not yet been bad for business.

"There is no indication that the security of our guests is endangered... our guest patterns have stayed the same," said a spokesman.

"Phuket is far from the affected area," he added.