Thai Longstay expects to turn profit after dismal five years

CHATRUDEE THEPARAT

Thai Longstay Management Co (TLM), one of two high-profile tourism projects initiated under the Thaksin Shinawatra government, is here to stay, and expects to turn a profit this year.

According to Piyapat Suban Na Ayudhaya, chief executive officer of TLM, the company has changed a lot following a restructuring and downsizing implemented last July. The company is now focusing principally on providing services and consultation to longstay tourists.

Established in September 2002, with the Tourism Authority of Thailand (TAT) as its major shareholder, TLM has struggled to stay afloat since its inception. The company reported accumulated losses of 70 million baht as it failed to achieve its mission to promote longstay services for foreign visitors to the kingdom of Thailand.

As of July last year, the company had signed up only 130 members.

The failure was partially attributed to the company's business plan, which originally focused on investment in real estate rather than services.

The company offers four types of membership including a one-year platinum card valued 28,000 baht. The card offers a one-year multiple re-entry visa with fast track for immigration procedures, a driving licence, and a discount for medical treatments, spas, hotels, golf and restaurants.

The second type is a one-year gold membership valued at 20,000 that allows the members to enjoy a one-year, single-entry visa, and other privileges similar to the platinum card.

The third is a one-year silver membership valued at 12,000 baht, allowing fast-track immigration and discounts for medical and spa treatment and restaurants.

The fourth type is 20-day ruby membership valued at 1,500 baht, allowing members to ask for longstay visas, one-time fast-track immigration procedures at Suvarnabhumi airport, and discounts for spas, golf and restaurants.

Ms Piyapat said the company aimed to sign up 13,063 members this year and to earn 26.42 million baht and 18.49 million baht in net profit.

Scandinavians account for 70% of the members, with the rest from the Middle East and Japan.

According to Ms Piyapat, in the first quarter the company has signed up 4,503 members.

According to the company's four-year business plan starting from next year, the company plans to raise its memberships to 15,480 next year, 15,780 in 2010, 15,960 in 2011 and 16,320 in 2012.

Revenue is projected to increase to 31.13 million, 31.91 million, 32.28 million, and 33 million baht during the period respectively.

"If the company succeeds in achieving an average net profit of 20 million baht each year during the period, we are fully confident we will be able to clear accumulated loss at the end of 2011," she said.

According to Ms Piyapat, the company provides consultation services to property companies that are interested in investing in developing projects for longstay tourists.

According to a company survey, 3,000 members of TLM were found to have bought residences in Thailand valued at more than five billion baht each.

Thailand Elite Card is abandoned

BANGKOK: -- The loss-making Thailand Elite Card, launched in 2003 to lure wealthy tourists and business people to Thailand, will be scrapped, a government spokesman said. Only 2,570 were members in 2008.

-- Reuters/Bangkok Post 2009-01-29

Abhisit orders feasibility study on ending Thailand Elite Card scheme

By Piyanart Srivalo, Suchat Sritama
The Nation
Published on January 29, 2009

Prime Minister Abhisit Vejjajiva yesterday ordered the Tourism and Sports Ministry to conduct a feasibility study on ending the money-losing Thailand Elite Card programme. The topic did not originally appear on the Cabinet's agenda.

Deputy Government Spokesman Puttipong Punnakan said Cabinet members were not sure whether it was feasible to terminate the programme at this stage.

Initiated by the government of ousted prime minister Thaksin Shinawatra to promote Thailand to wealthy foreigners, Thailand Privileged Card Co (TPC), which operates the programme, has suffered continuous losses since launching its services for "premium" visitors to Thailand in 2003. Wholly owned by the Tourism Authority of Thailand (TAT), the firm lost Bt134 million in 2003, Bt384 million in 2004, Bt843 million in 2005 and Bt1.14 billion in 2006.

TPC also recorded losses in 2007 and 2008, but exact figures are not yet available.

Puttipong said Tourism permanent secretary Sasithara Pichaichannarong had been assigned to conduct the study on ending the programme and report her findings to the Cabinet within two weeks.

"The premier and ministers want clarification about the financial losses accumulated over the past five or six years, as well as what to do next. They also want to ensure that any exit plan will not affect the rights of existing members," he said.

Sasithara attended yesterday's Cabinet meeting to discuss the planned waiving of visa fees. The ministry also plans to seek Cabinet approval soon for a Bt5-billion low-interest-loan facility for tourism and related operators hit hard by the economic crisis.

In addition, it will ask for Bt1 billion to revive tourism, with Bt400 million earmarked for domestic activities and the rest for international advertising and marketing.

TAT governor Phornsiri Manoharn, also a TPC director, could not be reached for comment, as she was accompanying TAT chairman Weerasak Kowsurat on a trip to Spain.

The card's goal is to present the finest services that Thailand has to offer in one unique package. It is the world's first country-membership programme, with benefits for immigration, leisure and business. Starting with a membership fee of Bt1 million, TPC has issued 2,570 cards.

TPC has been run without a president for some time now. Chairman Suraphong Triamchanchai is acting president.

Bt 134 million in 2003
Bt 250 million in 2004
Bt 459 million in 2005
Bt 297 million in 2006