Thai troops fired at crowds of anti-government protesters in the Thailand capital Bangkok and demonstrators fought back with firebombs and rocks, injuring 94 people and propelling the country deeper into political crisis.

Two people were shot dead in fighting between the protesters and city residents angry at the violent disruption.

Near dusk, soldiers advanced into an area held by protesters near the Government House, the prime minister’s office, setting the stage for a final push to end demonstrations that have further hobbled a country still reeling from political chaos last year and the global financial crisis.

Hundreds of soldiers with riot police behind them lined up on two roads approaching Government House, where protesters who support exiled former prime minister Thaksin Shinawatra and are known as the “red shirts” have been encamped since late March.

Preparing for conflict, protesters lit several city buses on fire to block the troops. The clashes came two days after protesters forced the cancellation of a high-profile Asian summit in Thailand, a big embarrassment for the present Prime Minister Abhisit Vejjajiva. He took office only in December.

Several countries issued travel advisories for Thailand. “I believe the darkest days in Thailand’s history are yet to come as we see no swift solution to ongoing divisiveness”, said Prinn Panitchpakdi, a CLSA Asia-Pacific analyst.

Japan urged its nationals to avoid wearing red or yellow colors in Bangkok, while France and Britain advised citizens to stay indoors as rioting spread in the Thai capital and countries worldwide issued travel advisories. Australia advised its nationals to reconsider traveling to Bangkok or surrounding provinces, and to “exercise a high degree of caution because of the Political instability in Thailand and the possibility of political demonstrations”.

Hundreds of local and foreign tourists still gathered two days ago to celebrate the water festival in Bangkok’s Khao San Road, a magnet for budget travelers, but some businessmen wondered how many foreigners would be back next year.

“Around 80 percent of tourists have checked out and more tourists are expected to leave after Songkran,” Surat Wongcharnslip, chairman of the Association of Khao San Business Operators, said.

Apichart Sankary, president of the Association of Thai Travel Agents, was quoted in the Bangkok Post as saying on Monday that tourist arrivals could fall below 10 Million this year. “Right now, there’s no hope for the Thai tourist industry” Surat said.

Tourism is the largest Industry in Thailand and the experts think that around 200,000 people will lose their job in tourism. A disaster not only for the tourism industry in Thailand.

Latest: In the last hours the leaders of the demonstrators called their people to go home and end the crisis. Journalists on the scene reported that the demonstrators are starting to put an end to this situation and going home. But at the same time, the question arises – is this the end or just a break! Please send us your comments to: reader@tourism-insider.com.