The tsunami that struck south Asia on St Stephen's Day has taken a terrible toll on lives in Indonesia, Sri Lanka and Thailand, but it also impacted on the local economies.

Although they are still counting the bodies in these countries, people in these areas now have to rebuild their livelihoods from the shattered fragments of their shops, restaurants and fishing boats.

Tourism is the lifeblood of southern Thailand and the industry is focused on the island of Phuket and the mainland areas of Phangnga and Krabi.

The Thai government is forecasting a dip of 0.5 % in gross domestic product (GDP) because of the tsunami.

However, people are refusing to give up.Narong Chaidum, whose tour guide business and tourist shop on Naiyang beach were destroyed in the tsunami, has been busy trying to get his businesses back up and running.

Mr Chaidum's six children, who were on school holidays until Tuesday, were called to help with the clean-up.

"I hope tourism comes back to Phuket after this shock. But the feeling is that the tourists will come back.

"It was terrible but even Swedish and German tourists, who have suffered in the tsunami, say they will visit Phuket again," says Mr Chaidum.

"A lot of people are cancelling now, but next year we hope the same people will come back here.Whatever happens, we will have to save money. We will just have to make sure that we spend less."

The high level of savings in Asian economies is going to play a major role in offsetting the long-term effects of the disaster. In the absence of a fully functioning social security system, people have to save for their own future.

Vitaya Boonmee is manager at the Phuket Orchid Resort hotel in Tambon Karon, an area which escaped the worst of the damage.

"There are 35,000 or 40,000 hotel rooms on the island, so obviously it will hit employment for the hotel staff if the tourists don't come back in two or three months," said Mr Boonmee.

"We'll be paid for up to three months but after that, we'll have to find new jobs. But if business does come back soon, we won't be affected that much," he said.

Mr Boonmee's hotel was used as an emergency centre in the aftermath of the disaster. A major Scandinavian tour operator set up a crisis centre there and the Finnish embassy located its help desk at the hotel.

"Some hotels are closed through damage, so some people have already lost their jobs. In a couple of months, the government will try to get the travel agencies' representatives to come here to see the work that has been done to repair the damage.

"We hope that the tourists will come back and that we can start again," said Mr Boonmee.

While things on Phuket are bad, the situation in Phangnga province looks far worse.

Khao Lak beach, where the tsunami killed thousands of Scandinavian tourists, has a post-apocalyptic look and will certainly take a long time to recover from the disaster.

"Khao Lak will take more than one year, maybe it won't be a destination for a long time. For the last three or four years, Khao Lak has become more and more popular. It's less developed than other areas, but it has become particularly popular with tourists.

"However, a lot of its beauty has been washed away now and it could take a long time to grow back. A lot of people died there and the tourists will remember that," Mr Boonmee said.

"Phuket is different. In two months, Patong beach will re-open and hopefully by the time of the Thai New Year on April 13, some people will come back. Maybe the people who would have gone to Phi-Phi island or Khao Lak may come to Phuket instead," said Mr Chaidum.

Some small traders were fearful that unscrupulous property developers and the local mafia would use the disaster as an excuse to claim a firm grip on the beachfronts.

However, even some of the beach hawkers have already returned. The Thai government said it recognises the problem and has issued statements to keep things above board.

The authorities are trying to keep things as simple as possible for the small traders and have promised that anyone who was selling on the beaches will be able to work there again once reconstruction takes place.

One major area of concern is borrowing. This was supposed to be the best season ever on Phuket, and the tsunami hit at the peak of the season, when the weather here is at its most pleasant and it its worst in northern Europe, where most of the tourists come from.

Many traders have borrowed to the hilt to build new shops, bars, restaurants and tourist facilities. For these traders, there may be some tax reliefs available or some state credit to help tide them over the worst.

Manoj Kimar Rana, a Nepalese tailor whose shops on Naiyan beach were all destroyed in the wave, has no insurance - another widespread problem. His family and friends have joined him in the rebuilding effort.

"The government want to help. We've registered with the police, like all the other victims of this disaster, giving them an idea of damages and a calculation of what we lost. Maybe we'll get some kind of refund or tax relief, I don't know yet," Mr Rana said.

"There are a lot more people affected by this than it appears - if I can't get my business up and running again it will affect people in my home town of Butwal in Nepal," he added.

Thai Prime Minister Thaksin Shinawatra, who is also one of the richest men in the country, said the plan to rehabilitate the beachfronts would continue apace, and the government believes it's time for the tourists to return.

One of the most striking things about the damage is how confined it is: restaurants, hotels and shops within reach of the wave were completely destroyed but just behind the beachfront area, everything is normal.

Local chamber of commerce chairman Pamuk Atchariyachai predicted this week that tourists would start coming back to Phuket within a fortnight.

The head of the local travel agency association, Patthanapong Ekwanit, said that damage to tourism-related businesses was at least 10 billion baht (€193 million) because the wave struck at the peak of the tourist season.

The tsunami also played havoc with the local fishing industry and it's hard to see fishermen from stricken villages going back in the water.

Mr Thaksin said the government needs technical rather than financial assistance. Although Thailand is a developing country, it is comparatively wealthy and it has been named the hub for disaster relief in the region.

The southeast Asian nation is digging deep into its reserves to rebuild the resorts. If ever there was a rainy day to save for, this is it.