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Spa operators seek urgent state assistance
Spa operators have called for urgent assistance from the
government after sustaining damages of almost 1.6 billion baht from last
month’s tsunami disaster, leaving over 2,500 people jobless. Paiboon
Piranowas, president of the Thai Spa Federation, said the damages inflicted
on the spa business totaled around 50% of the country’s entire market
value of around 3.6 billion baht.
Before the tsunami tragedy, spa operators in Phuket set a
target to earn 1 billon baht in revenue per year. Now, total revenues have
been reduced to 10 million baht, with the number of spas falling to 111 from
121 and the workforce declining to 1,500 from 3,740.
In Phang-nga, operators have targeted 420 million baht in
annual revenue. Now, however, the number of spas has dropped to 3 from 24,
with revenue expected to be flat. The workforce was reduced to 10 from 200.
In Krabi, operators hoped to earn revenue of 180 million
baht per year. Now, they expected to earn only 4.32 million baht. However,
the number of spas remained unchanged with the workforce dropping to 180
from 200.
Paiboon Piranowas said spa businesses have not yet
obtained concrete assistance since the tsunamis wrecked the six southern
Andaman coastal provinces. So, the federation wants the government to
accelerate working out a plan to expand spa business in areas which are not
affected by the disaster, and find jobs for the affected workers.
Thai spa villages should be established in Phuket,
Phang-nga, and Krabi so they could be new tourist sites where tourists are
accessible to local spa services, he said. The government should also set
aside a budget to promote low-cost tour packages with accommodations. (TNA)
Consumer confidence index rises in January
Spending in the New Year Festival and the just-finished
general election helped push up the confidence index in all categories in
January although there was a sign of slowdown in consumption, according to
the University of Chamber of Commerce’s Economic and Business Forecasting
Center.
Saovanee Thairungroj, Dean of the Economics Faculty,
disclosed a survey conducted by the center showed the confidence index in
all categories edged up. For instance, the confidence index on overall
economy rose to 90.9 from 89.3 points in December, on job opportunities rose
to 87.8 from 86, and on future incomes to 105.1 from 103.1 It resulted in an
increase in the consumer confidence index to 105.1 from 103.1.
She attributed the increase in the confidence index to
the easing of consumer worry about effects from last month’s tsunamis in
six southern Andaman provinces, persistent southern violence, and bird flu
outbreak.
Spending on the New Year Festival and the general
election also helped boosted the confidence index. Higher fuel prices are
only a negative factor that undermines the confidence. However, she said,
the confidence index in many categories stayed below the 100-point level for
the 13th consecutive month.
For instance, the confidence index on future situation
edged down for the 6th consecutive month. Beside effects from the tsunami,
the government’s decision to float diesel oil prices in April could make
people slow consumption by 3-6 months.
Thanawat Palavichai, director of the center, said the
landslide victory of the Thai-Rak-Thai Party in the general election, which
could lead to the establishment of the single party government, would
contribute to the increase in the confidence index. He projected the
confidence index in February would stay close to that in January.
Since the confidence index is likely to stay unchanged or
drop slightly, private companies must accelerate adjusting their marketing
strategies to maintain the total sales and keep selling prices unchanged.
(TNA)
Elenex Thailand 2005 hosts MEA Forum
Elenex Thailand 2005, Thailand’s Electrical Engineering
Event, is to be held in conjunction with the Metropolitan Electricity
Authority’s (MEA) Buyers Forum and the Thai Electrical & Mechanical
Contractors Association’s (TEMCA) 20 Anniversary held from March 2-5 at
the Queen Sirikit National Convention Center in Bangkok.
The MEA Buyers Forum will be the first of its kind
alongside an international event and will attract the top 600 of the key
electricity buyers in Thailand.
Adding to the full impact of the Elenex Thailand 2005
exhibition and conference is the pro-active cooperation of government,
associations and the private sector in particular the collaboration of MECT
(Mechanical & Electrical Consultants of Thailand) and TIEA (Illumination
Engineering Association of Thailand) in the organization of the technical
seminar program. TEMCA will also be holding their inaugural Economic Forum
alongside Elenex Thailand 2005 with panel speakers including the Federation
of Thai Industries and Thai Chamber of Commerce.
Up to 250 local and international companies are expected
to participate at Elenex Thailand 2005 and with the exhibition incorporating
Lighting Thailand and Energy Thailand the event is expected to attract
around 10,000 trade buyers from throughout Thailand and Southeast Asia.
Securitex & Fire Thailand 2005 will be held in
conjunction with Elenex with the support of the Fire & Rescue Department
of the BMA. This specialized exhibition will embrace the latest technology
and requirements of the fast expanding Fire & Security industries in
Thailand, and is expected to attract the key buyer groups from both the
construction and industrial sectors.
Elenex Thailand 2005 and Securitex & Fire Thailand
2005 open at the QSNCC on Wednesday, March 2 at 10 a.m. until 6 p.m. The
event will run for four days and is open by invitation to trade
professionals only.
Think-tank unveils
“Detroit of Asia” Plan
The industry-linked Thai Automotive Institute has drawn
up a 10 billion baht government investment plan to turn Thailand into the
“Detroit of Asia” by 2010. Institute director Vallop Tiasiri said the
think-tank’s plan, which it is ready to present to the new government,
outlined what the country had to do to become the hub of car and car parts
manufacturing in Asia.
The 10 billion baht investment – which could be
private-public sector joint funding – would enable Thailand to produce 1.8
million cars per year by 2010, up from the current capacity of 900,000 units
manufactured in 2004. Another goal of the plan was to train 300,000 skilled
workers in the sector, from the present pool of 200,000, at a cost of 1.5
billion baht.
Thailand should also build a research and development
center and auto-part testing facilities. In addition, there will be a need
for an information technology center to predict industry trends, as well as
an auto-part export promotion center.
Thailand exported 1.7 billion baht worth of car parts in
2004. Under the plan, that figure could be increased to four billion baht by
the year 2010. (TNA)
New government told
to push ahead with fiscal legislation
The new government should rush to get fiscal legislation
on the statute book in order to boost confidence in Thai financial
institutions, according to a leading research center.
In a recent report, the Kasikorn Research Center (KRC)
spoke of the need to ensure that fiscal legislation which was undergoing
review during the last term of Parliament is brought into force as soon as
possible. Such legislation includes amendments to the 1997 Asset Management
Corporation Act, amendments to the 2002 Credit Fonciers Business Act and
draft laws on deposit insurance institutes, financial institutions and the
Bank of Thailand.
The research center noted that while this legislation may
not in itself be urgent, bringing it to the statute book quickly will have a
beneficial effect on overhauling national financial structures and will help
boost confidence in the nation’s financial institutions. Describing the
success of the legislation as a key indicator of the performance of the new
government, the report said that the passage of the laws will be watched
with interest by Thai and foreign investors alike.
The research center expects amendments to the Credit
Fonciers Act and the Asset Management Corporation Act to be relatively
speedy and uncomplicated, but admits that other legislation, particularly
the draft law on deposit insurance institutes, could be more detailed and
sensitive. Nonetheless, the center views this legislation as an important
step in the development of innovations in financial deposits, which will see
changes to the way in which business is conducted in the future.
The report also noted that the proposed establishment of
a super regulatory agency to oversee financial institutions will play an
important part in determining the success of draft legislation on financial
institutions and the Bank of Thailand. (TNA)
Investors needed for land bridge project
The Ministry of Energy is to approach the governments of
China, South Korea and Japan to ask them about the progress they have made
on plans to invest in Thailand’s strategic energy land bridge project,
according to a senior ministry official.
All three countries have expressed an interest in
investing in the project, and are currently studying the cost-effectiveness
of investing in a 250 kilometer-long oil pipeline capable of coping with
1.5-2 million barrels a day, oil storage facilities on the Andaman and Gulf
of Thailand coasts and an SPM buoy which will be able to receive
100,000-300,000 ton ships.
Pornchai Rujiprapha, deputy permanent secretary for
energy, said that a letter would be sent to all three countries in the
middle of this month to determine what progress they were making on the
project. “If China, South Korea and Japan respond and are ready to invest
in this project, we will be able to begin construction in 2010, completing
within three years”, he said.
The Energy Ministry has asked the oil giant PTT Plc to
study investment plans for the project, focusing on energy security,
cost-effectiveness and environmental impact. The plans will also include
proposals for a tsunami warning system.
According to a ministry source, one sticking point which
could put off investors is the currently high price of steel, the principle
raw material in construction. The source indicated that if the potential
investors decided that the project was not cost effective, it would have to
be put on hold until new investors could be found.
The land bridge project is intended to boost energy
security and oil reserves, as well as lead to the development of downstream
petrochemical industries in Thailand’s southern region. Linking west and
east Asia, the project will reduce journey times and costs for oil
transportation, obviating the need for oil tankers to go via the Malacca
Straits. (TNA)
Clear intention to promote gasohol needed
Local oil traders have sought the government’s clear
policy to promote the production and consumption of gasohol before there is
a change in the sale and purchase contract on ethanol prices in the middle
of this year.
Cherdpong Sirivich, the Energy Ministry’s permanent
secretary, said representatives of PTT Plc, Bangchak Petroleum Plc, and
Shell (Thailand) Co. met with him to ask for a confirmation of the
government’s policy to promote gasohol ranging from production process,
raw material prices to ethanol output to be used for production.
He said the oil traders wanted to acknowledge the clear
policy before the contract on the ethanol prices can be adjusted before the
midyear in tandem with higher price of morass, one of the key raw materials.
They proposed the discussion between the ministry’s senior officials and
top executives of the energy-related private companies should be held every
two to three months.
Other problems earlier raised by the private sector such
as an increase of taxes in the morass export to encourage producers to pay
greater attention to the local market were also discussed and likely to be
settled before the middle of this year.
Cherdpong said the oil traders also called on the
government to show its clear intention to cancel the plan to mix MTBE in
gasoline next year and to develop gasohol in a concrete manner. (TNA)
Barter trade soared in 2004
Barter trade in 2004 increased around ten times over the
previous year, to 21.29 billion baht, according to the Foreign Trade
Department. Rachane Potjanasuntorn, the department’s director-general,
said 51 barter trade contracts were signed last year. The total value of
those contracts was 21.29 billion baht, compared to 2.19 billion baht in
2003.
Nine state agencies entered into the barter trade:
Electricity Generating Authority of Thailand, National Police Office, State
Railway of Thailand, Customs Department, Royal Thai Navy, Expressway and
Rapid Transit Authority of Thailand, Treasury Department, Bangkok
Metropolitan Administration, and Space Technology and Geo-Information
Development Office.
Rachane said the country’s chicken exports last year
dropped significantly by 335,000 tons or 60% in volume and 23 billion baht
or 50% in value. So, it was necessary for the country to adopt barter trade
in the international trade arena. Products such as frozen and cooked poultry
are included in the barter trade as part of the efforts to promote export
and ease damages incurred by the local poultry industry. (TNA)
New government must maintain tourism promotion policy
Key players in the Thai tourism industry have called on
the government to maintain its successful tourism promotion policy during
its second term in office. Both the official Tourism Authority of Thailand
(TAT) and private sector representatives argued for policy continuity.
TAT governor Juthamas Siriwan said, “The government
paid special attention to tourism during its first term, recognizing it as
an important source of government income. Twelve million foreign tourists
visited Thailand in 2004, a 20 percent increase on the previous year. It was
a target reached through the joint efforts of both the TAT and the private
sector. The government knew the policy’s strengths and weaknesses, but it
also understood the need for continuity,” she said.
The head of the Domestic Travel Association, Muslin
Sukpattananarakul, said while the new cabinet may contain a mix of old and
new faces, she too wanted to see policy continuity, particularly in the
reconstruction of the six provinces hit by the Indian Ocean tsunami late
last year. Muslin said there must be a strong commitment to the revival of
the areas as well as good coordination between policy makers and those at
the operational level. “The private sector should also be allowed to play
its role in the reconstruction effort,” she added. (TNA)
Phuket admits delays in Patong rehabilitation
Phuket Governor Udomsak Asawarangura spoke on February 13
of the urgent need to repair businesses on the island’s Patong Beach,
while conceding that operational glitches had served to delay post-tsunami
rehabilitation.
Noting that the revival of the beach was essential to
bring back tourists to the resort island after December’s tsunami, Udomsak
said that while the government had issued several relief measures, there
were difficulties in putting these into practice. As a result, repair work
was being delayed, particularly when it came to the restoration of business
operations along the beach.
Problems include the failure of insurance companies to
provide compensation for tsunami damage, delays in the issuance of
construction licenses and delays in the issuance of loans from commercial
banks.
Udomsak said that the provincial authorities would draw
up a detailed plan of all 91 businesses which had received tsunami damage in
order to speed up the repair work and ensure that it met the needs of local
business operators. (TNA)
Singaporean tourists welcome Phuket promotions
Singaporean tourists are responding well to the heavy
plugging of Thailand’s southern resort province of Phuket as a tourist
destination in the wake of the December 26 tsunamis, with a large number of
Singaporeans booking holidays on the now largely restored island over the
next few months, Tourism Authority of Thailand (TAT) Governor Juthamas
Siriwan revealed.
Juthamas said that Singaporeans were keeping a close eye
on promotions such as the ‘Rediscover Phuket’ packages being organized
by the TAT’s Singapore office in conjunction with Tiger Airways. The
airline is offering 20,000 cut-price tickets from Singapore to Phuket and by
the end of the third day of sales had already sold 5,000. The program is
also benefiting participating 3-5 star hotels.
Phuket, dubbed the Pearl of the Andaman, has been one of
the first areas to recover from the tsunamis, but visitor numbers are still
well down on pre-tsunami levels. (TNA)
More lottery money to go to poor
The government is planning to use additional revenue from
the state lottery to fund poverty elimination projects, Deputy Prime
Minister Chaturon Chaisang recently revealed.
Speaking after a meeting with the government’s economic
team, the deputy prime minister said that the new government would increase
the amount of state lottery proceeds going to the poor to 6-7 billion baht a
year.
The past administration spent around 5.3 billion baht of
lottery revenue on children and the poor, of which 4.9 billion baht has
already been spent this financial year.
“This money will go towards poor children and
education”, Chaturon said, adding that around 5.3 billion had already been
earmarked, and uses would soon be found for the remainder. He also revealed
that the government is preparing legislation relating to means-tested
educational funding, which is likely to come into force by the 2006 academic
year. (TNA)
University proposes
relocation of Chiang Mai Airport
Academics from Chiang Mai University have warned that
proposals to extend the existing runway at the Chiang Mai Airport will have
too much of an impact on the local area, and have suggested that the airport
is completely relocated within the next five years.
Under government plans to transform Chiang Mai into a
regional aviation hub, Airports of Thailand Public Co. Ltd. plans to extend
the runway by another 300 meters to the North. This will bring the length of
the runway up to 3,400 meters, allowing it to accommodate long-haul aircraft
from Europe.
A company named Southeast Asia Technology is currently
conducting an environmental impact assessment on the project. But at a
recent meeting between Chiang Mai University academics and the environmental
assessment team, it was decided that the impact on the area would be
enormous. The extension of the runway would limit the area available for the
adjacent university to construct new buildings in the future, while teachers
at the university would be forced to interrupt their lessons due to the
noise disturbance. Other problems would include increased dust levels, and
interruptions to medical and communications equipment from radio signals at
the airport.
Doctors, pharmacists and medical researchers are
particularly concerned that radio signals could lead to the malfunctioning
of equipment requiring a high degree of accuracy, which could in turn
compromise the well-being of patients. Pharmacists have said that they would
have to refrain from weighing out medicines each time an aircraft passed
overhead. Academics are also worried that the vibrations from the airport
could damage the large number of ancient monuments in the vicinity. (TNA)
THAI cabin crew protest outsourcing, call for pay rise
Over 300 employees of the national flag carrier Thai
Airways International (THAI) protested against outsourcing of stewardesses,
citing concerns over quality of service.
At the airlines’ headquarters, over 300 employees in a
recent rally organized by the company’s labor union, protested the plans
to hire a company called Siam Rajathanee to recruit a new batch of 509
stewardesses who will be employed under a three-year contract. THAI
executives said they can reduce cost concerning welfare by hiring contract
employees.
The labor union countered that hiring contract employees
who may not be as committed as full-time employees to deliver the services
will have an impact on the airline’s image in the long-run. They also
pointed out that the problem with THAI at the moment is not about the terms
of cabin crew employment but has to do with inadequate hardware facilities
such as poor in-flight entertainment programs and uncomfortable seats.
The labor union also demanded to meet with THAI President
Kanok Apiradee for an answer why to date he has not yet authorized the pay
rise which has been approved by the Cabinet. (TNA)
Thailand set for renewed free trade talks with Japan
Thailand is preparing for a sixth round of free trade
talks with Japan. The negotiations, scheduled to be held in Tokyo, will pave
the way for a free trade agreement expected to be signed in the middle of
this year, a senior Foreign Affairs Ministry official said.
Ministry’s Deputy Permanent Secretary Pisan Manpat said
the sixth round of talks was scheduled to start in April. “If the talks
are successful, a free trade agreement between the two countries will be
drafted within four months,” he said. The negotiations will also discuss
work permits and visas issues for Thais wanting to find employment in Japan.
Pisan said one example was the demand for Thai chefs in
Japan where the popularity of Thai food is on the rise. There are now said
to be more than 200 Thai restaurants in the country. Another area of
potential employment is the spa business, which is growing strongly in
Japan, as it is in Europe and the United States.
The foreign ministry official also gave an assurance that
Thailand would push for a fair deal for Thai entrepreneurs during the
negotiations. (TNA)
Budget airline Thai AirAsia opens Bangkok-Narathawit route
On February 9, budget airline operator Thai AirAsia
inaugurated the Bangkok-Narathiwat route with hopes to fill up to 70% of
seats and stimulate tourism in this southern province. Thai AirAsia CEO
Tasapol Blackweld said the Bangkok-Narathiwat route is initiated with a view
to make Narathiwat province a hub connecting travelers to the three border
provinces. Narathiwat will soon become a major air transit point to help
alleviate congestion at Hat Yai airport in Songkhla, he added.
Thai AirAsia is a joint venture between Shin Corporation
and AirAsia Malaysia, offering low-cost air travel within Thailand and
neighboring countries. A 60 percent seat occupancy is projected for the
initial period of service in a 120-seater that operates return flights three
times a week between Bangkok and Narathiwat. The occupancy rate is expected
to rise thereafter to 70 percent.
Narathiwat Governor Pracha Terat said the flight
connection helps facilitate transport and tourism in the province and
surrounding region considerably. He said the new government should be able
to restore peace in the southern border region in months to come.
Commercial flights between Bangkok and Narathiwat were
suspended a long time ago due to thin passenger traffic as well as security
concerns. (TNA)
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