Thailand’s Government declared a state of emergency last night, clearing the way for police to storm Bangkok’s international airport and remove thousands of protesters occupying one of Asia’s biggest transport hubs.

Hundreds of fiercely royalist and largely middle-class militants belonging to the People’s Alliance for Democracy (PAD) have barricaded themselves at Suvarnabhumi airport since Tuesday, filling the approach roads with cars and blocking access with coiled razor wire and queues of tethered trolleys. They are demanding the resignation of the Prime Minister, Somchai Wongsawat. Thousands of tourists, including as many as 2,000 Britons, have been stranded.

The Health Minister, Chalerm Yoombamrung, said the Government was holding talks with the protesters to find a peaceful solution but, if they failed, 30 emergency medical teams were on standby to deal with the aftermath of a police crackdown. “I want the negotiations to be successful because I don’t want to see bloodshed,” he said. However, PAD leaders have sworn to maintain their hold on the airport until the Government resigns. “We will not leave, we will use human shields against the police if they try to disperse us,” Suriyasai Katasila said. The occupation has already cost the country as much as £1.8 billion and severely damaged its image abroad, but many Thais - civilian and military - would condemn the use of violence to clear the terminal.

Mr Somchai addressed the nation last night to announce formally the limited state of emergency, which covers Suvarnabhumi airport and the little-used Don Muang airport, and smooths the way for a police takeover. “The Government is not intending to hurt anybody, it’s just facilitating official works. The emergency will be temporary,” he said.

The streets of Bangkok were eerily quiet last night and the city was alive with rumours of a military takeover, despite reassurances from the army chief, General Anupong Paochinda, that he would not mount a coup. After 18 attempted coups - 11 of them successful - since 1932, Thais are no strangers to force majeure. Rumours of a coup were so widespread that the military issued a statement saying that armoured vehicles on the streets were returning from a parade.

The occupation of the airport was a last-ditch effort by PAD, which had seen its numbers dwindle after months of protest marches and rallies appeared to have had little effect on the Government.

Times Recommends

• Times Charity Appeal: SolarAid
• Is it Black Monday all over again for Dubai?
• Behind the scenes at the biggest deal