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The Pattaya Palace to be resurrected
Investment of 800 million baht earmarked
Songklod Kaewvisit
The Pattaya Palace Hotel, once the pride and glory of
Pattaya has lain in waste for many years. The hotel was first opened in 1970
under the management of the legendary Louis Fassbind. In 1973 the Hyatt
group took over the management and operated the hotel until 1980. After that
period the hotel remained in operation for a few more years before closing
down and being abandoned for almost two decades.
 Abandoned
for almost two decades, the Pattaya Palace Hotel will soon receive a
facelift and brought back to its former splendour. (Photo by Boonsiri
Suansuk)
The resurrection of the hotel will be incorporated with a
new project, which will be called The Market Pattaya. A one-story retail
development will combine the themes of Centre Point at Siam Square and Suan
Lum Night Bazaar in Bangkok.
Of the total 23 rai (36,800 sq. metres) of land, located
between sois 5 and 6, about nine rai (14,400 sq. metres) will be renovated
around the Pattaya Palace Hotel, with the hotel given a facelift to create a
retro 1960s style look and 200 rooms upgraded to a five-star boutique hotel
standard.
 The
Pattaya Palace as seen from second road today. A huge one storey shopping
plaza will be built on the grounds of the property.
Construction has begun and the new centre is scheduled to
officially open on January 1, 2004. The hotel’s front entrance will be
located right next to the main road alongside Pattaya Beach while the other
side of the project would be on Pattaya Second Road. The hotel renovation
begins after the completion of the market.
The 14 rai (22,400 sq. metres) on Pattaya 2nd Road will
be developed as the Market Pattaya shopping plaza and will have more than
450 units of small shops offering fashion boutiques, decorative items,
furniture, handicrafts, beverages and entertainment, as well as a car park
for 300 cars.
The company has hired Chatree Sophonbunnarak, who manages
the Chatuchak Weekend Market in Bangkok, to look after the marketing
strategy. The management has already outlined plans to divide the market
into zones.
“We will have a mix of stores and services, like Centre
Point and Suan Lum Night Bazaar in Bangkok. We are confident of turning our
project into a landmark destination for shoppers in Pattaya in the near
future,” said Thanakorn Telan the managing director.
Pattaya Mail did some investigation and was able to
locate the legends of the Pattaya Palace Hotel. Read the story on page 24.
Rollout of first metro train for the Bangkok Blue Line
Completion in record time
In Vienna, Siemens Transportation Systems (TS) recently
presented the first metro train for the Bangkok Blue Line to the customer,
Bangkok Metro Co., Ltd. (BMCL). The train is part of a 352-million-euro
turnkey contract, under the terms of which TS will be responsible for
project management and part of the infrastructure, as well as for
maintenance of the system over a period of ten years. The new subway line is
targeted for soft opening with limited service on April 13, 2004 - Thai New
Year - four months earlier than scheduled.
 Bangkok
Blue line to ease Bangkok’s traffic congestion.
The train presented is one of 19 three-car units produced
by Siemens SGP in Vienna and scheduled for service on the Blue Line -
Bangkok’s first underground system. The route is about 20 kilometers in
length with 18 underground stations in the city center, including three
connections with the Sky Train, the elevated rapid transit system, likewise
fitted-out by TS and operational since late 1999. The new line is designed
in its initial phase to carry 12,000 passengers per hour and direction.
“I am looking forward to seeing the train run in
Bangkok,” said Suriya Jungrungrerngkij, Thai Minister of Transport, at the
presentation in Vienna.
And this will be earlier than scheduled, in cooperation
with the Mass Rapid Transit Authority of Thailand (MRTA), the agency in
charge of providing the civil infrastructure for this project: the original
(and ambitious) timescale of 30 months was shortened by 4 months at the
request of the Thai government.
That demonstration run will start in April 2004, followed
by a soft opening with 13 trains after only 26 months. It is being described
by TS Vice President Hans-Dieter Bott as “a record in the world of mass
transit systems.”
Bott added, “We are proud to be a key partner for the
development and implementation of transportation concepts in the city of
Bangkok. We and our local staff look forward to successfully handing over
this project in record time.”
The objective of the Blue Line is to ease traffic
congestion in central Bangkok. “We want to make the metro an attractive
alternative to the automobile,” commented Plew Trivisvavet, Chairman of
BMCL.
The project has been 100 % financed by banks. As system
operator, BMCL is setting store by safety and comfort. The fully
air-conditioned three-car units are 65 meters long and three meters wide.
They are walk-through all the way, provide space for 886 passengers (126
seated and 760 standing) and attain a maximum speed of 80 km/h. The
car-bodies are made of stainless steel.
Consumer confidence
index hits 58-month high
The University of Thai Chamber of Commerce is preparing
to upgrade the nation’s economic growth forecast after releasing the
consumer confidence index for July, showing it to be at a 58-month high,
with the future earnings index in particular edging up to an impressive
113.0 points.
Thanawat Phonwichai, Director of the university’s
Economic Forecasting Center, said that all the consumer confidence indexes
for July, based on a survey of 2,342 respondents, gave clear indications
that Thailand’s economy was going from strength to strength.
The overall index for July pushed up to 98.0 points,
compared to 94.6 points in June, with the future employment opportunities
index rising from 85.0 points to 89.9 points, and the future earnings index
from 108.1 points to 113.0 points.
Noting that these indexes signaled growing confidence in
the economy on the part of Thai consumers, Thanawat attributed the rise to
the Bank of Thailand (BOT)’s revision of its 2003 economic growth forecast
from 3.5-4.5 percent to 4.5-5.5 percent, and the early repayment of loans to
the International Monetary Fund (IMF).
In addition, exports recorded continuous growth, while
the Stock Exchange of Thailand (SET) hit 503.19 points on 16 July, and the
baht had appreciated from 42.04 to the US dollar in June to 41.98 to the
greenback in July. At the same time, the government’s low interest rate
policies had served to stimulate economic growth.
However, a number of factors did have a negative impact
on consumer confidence, including the rising price of oil and problems
relating to the lack of progress on dealing with non-performing loans (NPLs).
Nonetheless, Thanawat said consumer confidence is on the
upturn after having fallen in March and April due to the impact of the war
in Iraq and the SARS health scare.
But he also warned against complacency, saying that
trends for the index in the latter half of the year were dependent on oil
prices, the affect of low interest rates, and the revival of the global
economy.
Nevertheless, he said that the center predicted that the
consumer confidence index would continue to rise although the extent of the
impact on the rising oil prices on the price of consumer goods would have to
be assessed before any concrete forecasts could be made. (TNA)
Thailand home to world’s highest per capita ratio of entrepreneurs
Thailand is home to one of the world’s highest ratio of
entrepreneurs per head of population, but entrepreneurship skills need to be
developed to strengthen the kingdom’s small and medium-sized enterprises (SMEs),
according to a leading researcher.
Montri Chulawattanathon, chair of directors of the Keenan
Institute Asia, said that during the entrepreneurship seminar held as part
of the Asia Pacific Economic Cooperation (APEC) meeting on small and
medium-sized enterprises (SMEs) in this northern resort province of Chiang
Mai recently, foreign experts had cited research conducted by the London
School of Economics showing that Thailand had one of the highest per capita
concentration of entrepreneurs, with an average of 18 entrepreneurs per 100
adult members of the population.
This compared extremely favorable to Japan, where the
ratio was only 2:100, and was considerably higher than the global average of
7-8:100, he said.
But Montri, who called on the government to support
entrepreneurs by slashing red tape, warned that Thai entrepreneurs required
further development, particularly in terms of the creation of innovations
and in training.
He also cited comments by experts from Singapore, Taiwan
and Australia showing that innovations had to begin with young people, and
noted that Australian experts had called for backing for research into all
areas, including information technology (IT), biotechnology and food and
medicine.
Meanwhile, Pitipong Pungbun Na Ayudhaya, director of the
government’s transformation of assets into capital program, said that the
program would help members of the public use their assets to become SME
entrepreneurs.
Noting that under the program, assets would be divided
into five categories – land, rental or leasing contracts, land benefit
rights, intellectual property and machinery – he said that the project was
now establishing a database and a clearing house to settle possible disputes
out of court. (TNA)
SET to push for greater stock market balance
The Stock Exchange of Thailand (SET) has pledged to
redress the imbalance between Thai and foreign investors in Thailand’s
stock markets, calling for Thai corporate investors to replace foreigners as
the main market drivers in order to ensure greater stability.
SET president Kittirat Na Ranong stressed the importance
of creating better balance on the stock market, in particular by allowing
Thai corporate investors to determine market trends. Noting that foreign
investors based their decisions on international and external factors, he
said, “In fact Thailand’s stock market base is stronger and more
prominent than that of several other countries in the region. By looking
only at the region as a whole, foreign investors might make biased
decisions, which small-scale investors would then follow.”
“If Thai investors, with their greater understanding of
domestic factors, could emerge as stock market leaders, the result would be
greater stability. The SET hoped that the proportion of Thai corporate
investors could match that of foreign investors. At present the proportion
of foreign investors is 3-4 times higher than that of Thai investors,”
Kittirat said.
Kittirat admitted that Thai investors might need
encouragement. “The SET feels that the lack of interest in investing in
the stock market among Thais is not a question of lack of confidence, but
lack of familiarity. To solve this problem, the SET is joining with related
agencies, both in economics and in education, to communicate knowledge and
understanding to a wide sector of the public, via all forms of media. This
will begin from primary school level upwards, and will help make more
members of the public invest in the stock market, as in developed
countries,” he said.
Kittirat added that in the latter half of the year the
SET would be driven by a number of positive factors in terms of overall
economic growth. He noted that company performance and the financial
structure of listed companies was continually improving. However, he
conceded the profit to equity ratio (PE) of the SET stood at 8.6, the lowest
of stock market in Asia, where the average ratio stood at 14.
The SET president also admitted there would be a number
of negative factors affecting the stock exchange in the latter half of the
year, not least the imbalance of the financial markets caused by the
emphasis among the public on depositing their money in banks rather than
investing in stocks. (TNA)
Poll reveals most people agree with government’s decision on early debt repayment
Most people praise Prime Minister Thaksin Shinawatra-led
administration for its repayment of remaining debts owned to the
International Monetary Fund (IMF) ahead of schedule, according to a poll by
Assumption University.
The survey was made on “Public Confidence in
Government’s Attempt to Bail Out Ailing Economy Following Earlier Debt
Repayment with IMF” with a random sample of people in 22 provinces
nationwide during 1-9 August. It showed 79.32% admired the government’s
decision to repay all debts ahead of time, while 4.43% did not, and 16.3%
voiced no comment.
The survey disclosed that 71.8% expressed confidence in
the government’s attempt to solve the country’s economic woes, while
10.3% did not.
It found 30.4% believed it would have to take 1-3 years
for Thailand to strengthen and sustain the economic growth, and 42.7% and
18.4% thought it would need 4-6 and 7-9 years respectively.
On the public’s confidence in the government’s
attempt to cope with the poverty, 46.1% believed it could be achieved with
27.6% expressing no comment.
On positive factors that could contribute to the economic
growth, most people said it depended on an increase in purchasing power,
people’s spending and foreign investment respectively.
On negative factors that could undermine investment
climate and economic growth, most viewed they included bribe-taking,
corruption, traffic woes, protest and violence, bureaucratic red tape,
insecurity in life and property, and poor quality of education. (TNA)
TOT shows 7.58 billion baht net profit for first half of 2003
TOT Corporation Plc President Sitichai Songpiriyakit
recently announced that the firm had a total net profit of 7.58 billion baht
on a revenue base of 30.5 billion baht for the first six months of this
year. He said the biggest contributing factor was the boost in TOT’s
fix-line services and revenues shared by private operators.
Sitichai said, “Fixed-line service brought in 16.7
billion baht revenue for the company over the period, and the concession
fees it charged from private operators amounted to 8.5 billion baht, with
interconnection amounting to 4.7 billion baht.”
“After being transformed to a company limited, TOT’s
operations have been encouraging. So, I expect it to bring in an operating
profit of higher than 10 billion baht by the year-end,” Sitichai added.
Sitichai said the firm will boost its service revenue and
meet customers’ requirements by continuing to focus on its core fixed-line
business and will introduce a variety of supplementary non-voice based
services. He said TOT also plans to add 565,500 new fixed-line customers and
hopes to increase its market share to 52 percent up from its present 51.2
percent. (TNA)
Energy ministry ordered to monitor world oil prices
Energy Minister Prommin Lertsuridej recently stated that
although the prime minister has ordered concerned officials to keep a eye on
world oil prices, the current 13.69 baht a liter price for diesel oil is
still lower than the ceiling price of 14.79 baht a liter, set during the US
led war in Iraq, by 1.10 baht. He said the price of benzene oil slightly
increased to a 17 baht per liter level but it is projected that it will not
rise to 19-20 baht per liter and that the government’s intervention is not
yet necessary.
The ministry will focus on the price of diesel oil which
is the mainstay of the industrial production and transportation sectors.
Prommin said the current price is not excessive and the 17.29 baht a liter
price of benzene oil will not negatively impact the economy. Seeing no need
yet for government subsidy, the ministry plans to let oil prices move in
accordance with market mechanisms. (TNA)
BOT forecasts 3.5-5% growth for third and forth quarter
A recent report by the Bank of Thailand (BOT said the
country’s economic growth in the third quarter is projected at only 3.5-5
percent, a further decline from the first and second quarters. The report
also stated that there is a 64 percent possibility that the economic
expansion in the fourth quarter would also be about 3.5-5 percent.
According to the report, positive factors that could have
impact on the country’s economic growth are private sector consumption and
further export expansion. The central bank projected, however, that these
two vital dynamics would expand at a slower pace than that of the first half
of the year.
The BOT acknowledged that the fourth quarter is winter
season in western countries, which substantially increases the demand for
oil. This in turn could trigger an oil price hike. The report stated if the
price hike is one percent on average, Thailand’s economic growth is
projected to decline by 0.01 percent, the report said, adding that if the
oil price hike is not prolonged, Thailand’s economy would suffer minimum
impact.
Businessmen’s confidence in the country’s economy
during the month of July increased to a 54.90 level, signally sustainable
growth. (TNA)
Energy minister says new national oil strategies will turn Thailand into oil exporter
Energy Minister Dr. Prommin Lertsuridej recently
disclosed that the government is preparing national energy and petrochemical
strategies to transform Thailand from an oil importer to one of the
region’s key oil exporters within the next two years.
Speaking during a visit to private sector oil refineries
and gas separation plants based at the Mabtaput Industrial Estate in the
eastern province of Rayong, Dr. Prommin said, “Thailand’s potential to
develop its energy and petrochemical sectors is enormous, and the
development of these sectors will in turn contribute to overall economic
growth.”
Noting that three oil refineries belonging to Shell, PTT
and Caltex were able to use cutting-edge technology to provide the country
with one-third of its oil needs, Dr. Prommin said, “I will collect
information from the companies to draw up national energy and petrochemical
strategies and discuss with the oil companies how to boost Thailand’s
potential in these sectors, as well as how to amend related legislation, in
particular legislation relating to the tax structure, as tax problems were
currently preventing oil refineries from developing to their maximum
potential.”
Expressing hope that the strategies would soon lead to
the transformation of Thailand into one of the region’s key oil exporters,
he nonetheless warned that the strategies would only be successful if the
tax structure was amended to allow refineries to order the purchase of more
oil for export.
Dr. Prommin stressed that at the same time, the
supervision of customs regulations and excise tariffs would also have to be
amended to ensure the effective growth of the sector. Voicing optimism, Dr.
Prommin said, “Changes can be made in the near future, as Thailand’s
readiness in terms of oil refineries, gas separation plants and oil storage
facilities means that the strategies can be drawn up quickly.”
On 28 August a seminar will be convened bringing together
representatives from the public and private sectors as a preliminary move to
work on the national strategies. Dr. Prommin also hinted that the use of
land belonging to the Navy where oil storage facilities were located might
be extended for commercial use, with shipyards and ports.
Dr. Prommin voiced confidence that within the next two
years Thailand would leap to the top place for energy and petrochemicals in
the Association of Southeast Asian Nations (ASEAN), the third highest place
in Asia and the fourth highest place in the world, noting that natural gas
reserves in the Gulf of Thailand were sufficient to bring a huge amount of
revenue into the country. (TNA)
Dog designer clothes seen to have promising prospect in overseas markets
Your family dog’s fashion statement could be the result
of a new growth industry in the kingdom. These days clothes are not now only
for humans. Beloved pets of families the world over are now sharing in the
warmth and diverse designs of clothes made from Thai fabrics. The popular
trend of doggie fashion is on the rise and innovative Thai designers are
jumping on the bandwagon.
‘Noi’, a Thai designer of clothes for both male and
female dogs said, “My orders have been increasing satisfactorily,
particularly from foreign dealers for sale in overseas markets. My customers
are very impressed with the unique styles and designs made from Thai
fabrics, namely cotton and silk.”
“This design work needs a lot of thought. I must take
into account the specific characteristics of different dog breeds, body
structures, behaviors, and sex. The workmanship must be of high quality to
satisfy my customers’ demands,” Noi said.
Noi added that the most promising markets of the product
were located in all regions worldwide, including Japan, the United States
and Europe. (TNA)
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