The economic crisis in Asia is threatening to harm British companies with contracts in the region.

But the fall in the value of currencies should be good for tourists, with cheaper holidays to the Far East and a reduction in the price of imported goods.

The DTI video has been amended

Just a year ago, a video produced for British businesses by the Department of Trade and Industry promoted south-east Asia as one of the most attractive regions of the world for investment.

Now the video has been withdrawn and the commentary changed to give a more measured view of prospects in the Far East.

British companies are not immune to the crisis

British companies are already finding that the crisis in the Tiger economies is affecting them.

Engineers from Britain are helping to build many of the huge construction projects already underway in the region.

The Bakun Dam: postponed

But with schemes like Malaysia's Bakun Dam already postponed, the future looks less rosy.

Hugh Woodrow, of the Association of Consulting Engineers, said: "Our members are concerned about the events in the Far East because at the moment the work they are committed to amounts to over 50% of their overseas earnings - earnings that are desperately needed by this country."

But for some companies the crisis brings opportunities.

Holidaymakers will benefit from cheaper prices

The big holiday companies have been encouraging travellers to look farther afield.

With Far Eastern currencies depreciating fast, holidays there may soon be much cheaper.

Christina Roberts, of Thomas Cook, said: "We won't see a major change straight away. However I believe that in the future hoteliers will be reducing their prices and maybe the flights coming down.

"In the future, maybe nine months or a year on from here, we will definitely be seeing cheaper holidays."

Imported goods will be cheaper

Prices of electronic goods from the Far East should also fall as manufacturers try to make up for the downturn at home with bigger sales abroad.

For British companies trying to sell in the Far East these are worrying times.

But millions of British consumers face the prospect of lower prices for imported goods, which could even help lessen the pressure for higher interest rates.

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