‘Quality tour’ packages planned to replace ‘coin less tours’ from China

The Tourism Authority of Thailand said tour agencies from three Chinese cities - Shen Zhen, Shanghai and Guangzhou - have been invited to visit Thailand this month in a plan to start quality tour services between Thailand and China. The state-owned agency plans to reorganize tourism between the two countries.

According to TAT governor Seri Wangpaichit, it is necessary that Thai-Chinese tourism be revamped after a rampage resulted from the ‘coin less tour’, in which Thai travel agencies have to ‘buy’ tourists from mainland China for programs back in the Kingdom. Under the ‘coin less tour’ arrangement, Thai agencies would earn only commissions from hotels and shopping centers in return. The practice is destroying tourism industry, he said.

Notes: Only about 10 travel agencies from over 60 were found selling quality tours to Chinese companies. Mainland tourists have been experiencing difficulties while staying and shopping in Thailand as prices are hiked against commissions. Many of those tourists have been cheated. THAI and other leading airlines would support quality tours.

Japan’s Family Mart increases holding in Thai operation

Family Mart of Japan has increased shares in Siam Family Mart Co., which operates a convenience store chain in Thailand. The bid comes in a new restructuring plan in which the company’s registered funds will be increased from Baht 400 million to Baht 600 million. Although Japan’s Family Mart, which earlier held 45% in Siam Family Mart Co. has reduced its share to 43%, it has increased its holdings through Family Mart Holding Co., which holds 17% in the Thai operation.

Japan’s Itochu Corp. of Itochu (Thailand), the Saha Group, and Robinson Department Store chain have all diluted shares in the new holding structure, said Minoru Endo, Siam Family Mart managing director. Though Robinson and the Saha Group have reduced their shares in the Siam Family Mart, the two leading retailers will still play a leading role in managing Family Mart convenient store chain, Mr Endo said.

The chain, with 86 branches since it entered Thailand in 1994, will now implement an ambitious expansion plan with franchising schemes. Since last year the company has offered the public a chance to own a convenience store with only Baht 950,000 in initial investment. Changes are planned for the chain when it opens up its 100th branch this September.

CP leads protests against new import duty structure

Thailand’s largest agriculture group Charoen Phokphand has led 17 other livestock and poultry organizations and associations in protests against the government’s new import duty structure. The new structure comes under a tax and tariff restructuring scheme in accordance with the World Trade Organization agreement. Local industries said the new import duty on livestock and poultry, brought down from over 40% to 15%, is too low.

Industries have feared that under the duty structure, local markets, especially beef and chicken, will be overwhelmed by price-subsidized products form US and EU producers. Local markets must be protected as the government still has 5 years to announce a new tax structure to comply with the WTO commitment, the organizations said.

The organizations are protesting that the agriculture sector, hoping to see a recovery in the next 2 years, will be adversely affected. Local agricultural produce - maize, beans, feed mill and grains - will be also be at a disadvantage they say. The domestic market must be protected as the US market is closed to Thai-broiled chicken, while EU charges a 50% import duty on Thai boneless chicken.

Agriculture director accuses Australians of ‘spying’ on Thai fruits

An Australian delegation will spend 25 days in Chiang Mai to study growing lychee under a suspect educational tour program, as the country has become Thailand’s rival in exporting tropical fruits. "It’s too long a trip to spend in Chiang Mai for such an education," said the director-general of the department of agriculture Danai Dalodom.

This is not the first time Australian officials made such a trip to the Kingdom for educational purposes. Australia has also offered more than Baht 40 million a year to support research in tropical fruit and insect control in Thailand, Danai said. Australia exported more than Baht 1.6 billion of tropical fruit last year- some of which had never been grown in that country before, he said.

Similar educational trips by Thai officials have been refused by Australian authorities.

The country now exports lychee, longan, rambutan and mangoes to the same markets as Thailand, including the Pacific islands, Hong Kong, Singapore, Britain, France and Belgium.

Thai academics have been urged to be more independent and free of foreign assistance in botanical research.

Plans to privatize two state-owned transport firms approved

The cabinet on Tuesday approved plans to privatize the state-owned Express Transportation Organization of Thailand and Transport Co Ltd. The plan will allow private investors to hold more than 50% of the shares in the two organizations, which have monopolized domestic transport and passenger commuting businesses through the past several decades.

According to Deputy Minister of Transport and Communication Sonthaya Kunpleum, the Committee for State Enterprise Policy is to determine how to operate and manage the state-owned Transport Co. and ETO after they are privatized. Under the plans approved, the government will reduce shares in Transport Co. Ltd. to fewer than 50%, while an independent company will be formed to see to operation of the new business entity.

ETO will be changed into a company, majority-owned by private investors. A privatized ETO, with whatever name it carries, will enjoy 3 more years of monopolizing the transport business. The committee will spend 6 months studying terms of investment and factors to help speed up privatization.

New Thai-made Y2K card available in town

Smart Solution Network Co., which formally opened itself to the public on Wednesday, has introduced its ‘MT 2000’ card to the market, aiming to tap into institutional and agency customers from here to the end of the year. The new card, which would help make PCs Y2K compatible, has been developed and produced by Thai computer scientists who earlier worked for Master Call (Thailand), and Master Call Technology Co., a Thai communications group which won telephone projects in China.

The card, at Baht 1,200 a set, will correct CMOS, real time clock and basic input/output system problems on PC hardware, with no need to replace integrated circuits on computers to prevent the system crashes which are feared to occur at the turn of the century. Government agencies have been found in the company’s survey to remain inactive concerning the Y2K threat, said SSN deputy chairman Vichet Sirivachiranuskul. However, those agencies will be more serious about the problem later this year, he said.

The company has already brought out up to 10,000 sets of the MT 2000 card from Master Call factory in Samut Prakarn. The production base might be removed to China’s Shen Zhen, where costs are much lower. Some of the products have been exported to the US market.

IBM Thailand’s PC manager calls it quit

IBM Thailand’s PC manager, Terdsak Skulyong has surprised the industry by resigning from the company. IBM Thailand leads the domestic PC market, and sales of IBM PCs have reportedly risen sharply. Terdsak, after many years with the computer giant, said that he would like to set out in his own business. Terdsak’s resignation became affective as of June 6, said an IBM sources.

The company’s general business manager, Thanwa Laohasiripong has been appointed to replace Terdsak, while a permanent manager is being sought for the top post in the marketing of IBM’s PCs in Thailand, the source said. Terdsak’s resignation, however, is not likely to hurt sales of IBM (Thailand), which reportedly have increased sharply in the past several months, since a firm marketing strategy has been established, said the source.

IBM leasing manager Ms Supajee Suthampan and e-business manager Mr. Supoj Chokevareeporn have been among strong candidates for the top job.

Coke to launch drinking water this month

Sermsuk Co. and Haad Thip Plc., producers of Coca-Cola, are preparing to launch their first bottled drinking water this month, aiming to tap from the huge market segment. Sermsuk has told retailers in Bangkok and vicinity to prepare for the launch of ‘a new product’ around the middle of June, while the company prepares TV commercials to promote sales, said industry sources.

Though sources said Sermsuk’s new product will be drinking water under a new brand-name, Coca-Cola managers have declined to provide details about the new ‘soft drink’, saying that competitors would take the advantage from news leaks. The group, which started price wars in the soft drink market earlier this year, will soon launch new sales drives in both modern and traditional trade channels, said the sources.

Posters, hand bills and placards, among other tools, are being prepared for the launch. A number of freezers are already installed at city stores. The group also last week launched ‘Buddy Coke’ in 250 CC bottles.

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