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Homeworks invests Bt.500 million in new Pattaya store
Narisa Nitikarn
Homeworks department store, part of the giant CRC Power Retail chain
recently opened one of its biggest branches in the country on a 20-Rai site
in South Pattaya.
The official opening of the 500 million baht development on Sukhumvit Road
took place on September 9 and was attended by many dignitaries, including
Mr. Phong Sakuntanak, managing director of CRC Power Retail Company Limited,
Mr. Wanchai Jirathiwatt, president of Central Group of Companies, Mr.
Santsak Ngampiches, Senator for Chonburi and Mr. Chanyuth Hengtrakul, ex
member of parliament, Chonburi District 7.
 (From
left) Mr Phong Sukontanad, managing director of CRC Power Retail Company
Limited, Mr Wanchai Jirathiwatt, president of Central Group of Companies, Mr
Sansak Ngampichaet, Senator for Chonburi and Mr Chanyuth Haengtrakul, ex
member of parliament, Chonburi attend the opening ceremony of the new
Homeworks store in Pattaya.
Speaking in his opening address, Mr. Phong said, “The South Pattaya store is
presently the 6th largest Homeworks branch in the country and Pattaya was
chosen as the site for this development because it has a lot of potential
and a large pool of prospective customers, both locals and foreign nationals
who have high buying power.
“There is also a burgeoning market for home products within the real estate
and hotel industries in the area and this looks set to continue growing.
With the opening of Suwanabhumi Airport, I believe that Pattaya and the
surrounding areas will see a massive increase in investment.”
The new store covers an area of some 34,000sqm and is expected to achieve
total sales figures in excess of 50 million baht per month.
Businessmen say coup ‘cleared the air’
Thai businessmen believe that the nation’s political
situation will remain a major influence in the business environment well into
the third quarter of next year though most of them said political conflict has
eased and their operations will now be more profitable.
These are the main findings from a survey conducted by the University of the
Thai Chamber of Commerce among 580 Thai businessmen September 22-27 after the
seizure of power by the Council for Democratic Reform.
According to Yajai Chuvicha, who led the survey research team, the businessmen
also list the topmost tasks facing the new government as solving economic
problems, maintaining political stability and stemming political turbulence.
The majority of businessmen surveyed endorsed the seizure of power and believed
that the change has cleared the air politically.
Asked to look ahead, most businessmen surveyed saw a bright picture in terms of
political certainty and unity among what they saw as a highly divided society.
They also believed that six months from now, consumption, private sector
investment and foreign investment would pick up.
During the coming six to 12 months, the businessmen indicated, they do not
foresee any negative impact from the coup in terms of employment, business
operation or export orders. They are upbeat that businesses will be more
profitable. (TNA)
Good news so far for
Thai meetings sector
Mark Bode, TTG
Thailand’s meetings industry is breathing easier now that it appears the
immediate fallout from the September 19 military coup d’état has been minimal,
although there are concerns the long-term impact could be greater.
Industry figures said the peaceful nature of the coup had eased international
jitters and they were confident the country’s MICE (meetings, incentives,
conventions and exhibitions) industry would not be hit too hard, provided there
was status quo.
Thailand Convention and Exhibition Bureau (TCEB) acting director-general, Mr
Kajit Habanaanda, said: “There’s been very little impact so far. Most
cancellations have been from the MI (meeting and incentive) sector, and these
events don’t need long-term planning. As for exhibitions and conventions,
nothing has changed. Up to now we’re very relieved, but we have our fingers
crossed.”
CDM managing director, Mr Sumate Sudasna, said his only cancellation since the
coup was a site inspection for an incentive from the Netherlands. “We’re waiting
to see what will happen. We don’t know how many missed opportunities there will
be,” he said.
Meanwhile, AsiaCongress managing director, Mr Marcel Ewals, said his company was
organising a medial conference in Pattaya in October for 1,000 delegates, and so
far there had been no cancellations. “We are surprised, but the cancellations
might come later, although we believe it will be okay,” he said.
Diethelm Events executive manager, Mr David Barrett, said he received no firm
cancellation, but was concerned that might change. “The corporate meetings and
incentive sectors remains the most fragile of all tourism markets and all
customers are monitoring the situation a little longer prior to making decisions
for their 2007 programmes.”
Kuoni strengthens regional position with purchase of Asian Trails
The Kuoni Group is continuing its acquisition strategy in
Asia with the purchase announced last week of Asian Trails Holding Ltd, one of
the leading destination management companies in Southeast Asia.
Thailand based company Asian Trails is currently active in seven countries in
the region. The acquisition underlines Kuoni Group’s expansion strategy in
destination management and further strengthens its position in Asia.
Kuoni Travel Holding Ltd, one of the world’s leading travel organizations, will
integrate Asian Trails as a separate company into its Asia & Destination
Management business unit. Asian Trails’ four-person management team, headed by
Luzi Matzig and the senior managers Laurent Kuenzle, Jacques Guichandut and
Roger Haumueller will continue to be responsible for the Asian Trails unit and
its positive development. Asian Trails will report directly to Rolf Schafroth,
Managing Director Destination Management.
Asian Trails, which has its operational head office in Bangkok, was founded in
1999. With its 400 employees, the company is expected to generate a turnover of
approximately USD 60 million (Thai Baht 2.28 Billion) in 2006. All employees
will continue to work for Asian Trails. The parties have agreed not to disclose
any information about the purchase price.
Asian Trails CEO Luzi Matzig commented, “This transaction is very positive for
the future growth of the Asian Trails Group through its synergies with the
worldwide Kuoni Destination Management network and will assure sustainability
for the future, especially in the increasingly important online area.”
Rolf Schafroth, Managing Director Destination Management at Kuoni, emphasized:
“Kuoni is already very well established in Asia. With this acquisition, which
fits our strategy perfectly, we can add to our strong sales presence in
destination management in Southeast Asia by entering the fast growing inbound
market.”
The acquisition was announced in Zurich and at a press conference in Bangkok
last Friday, September 29. At the press meeting, Reto Wilhelm, Kuoni Group’s
Executive Vice-President Europe, Asia & Destination Management said, “Kuoni is
consistently pursuing its expansion strategy through targeted acquisitions.
Southeast Asia is a very important area for us, and with this acquisition we can
significantly strengthen our position in this region.” - Agencies
Thais urged to produce in Vietnam for ASEAN free market
Thailand should stop viewing Vietnam as a trade competitor,
and instead look for opportunities to benefit from the country’s low labour and
manufacturing costs according to Thailand’s ambassador to Vietnam.
Speaking last month, Thailand’s top envoy to Vietnam, Kittipong Na Ranong, said
that socialist-led Vietnam was still some way behind Thailand in terms of
economic output, but as all ASEAN member countries strive for free trade within
the bloc, Vietnam could make a potentially ideal production base for Thai goods
due to its pool of cheap labour and lower manufacturing overheads.
‘’The world has changed so much and countries in Indochina are now well linked
through better roads and bridges,” he said. “This improved network will help
transport goods within ASEAN as the bloc is moving toward a regional free trade
market.”
The Thai diplomat indicated that under the terms of the free trade zone, goods
produced in one member country could supply consumers across the ASEAN market
zone.
He said Thai entrepreneurs should, therefore, consider moving production bases
of certain goods to Vietnam in order to benefit from cheaper costs of raw
materials and labour.
‘’Besides supplying goods to 84 million consumers in Vietnam, they will also be
able to sell to other ASEAN nations under the free trade agreement,’’ he said. -
(TNA)
Thai economy sluggish in August
The Thai economy slowed in August compared to July, according
to key economic indicators released by the Fiscal Policy Office last week.
Ministry of Finance fiscal policy office deputy director Somchai Sajjapongse
said the overall picture of the Thai economy in August saw consumption and
private investment slowing, although the country’s foreign currency reserve
remains at a secure level.
Output and employment, as well as commodity prices in the agricultural sector,
all contracted in August, which is likely to hurt incomes for those in the
farming sector, Somchai said.
At the same time, employment in the service sector rose by 2.1 per cent in
August as labour moved from agriculture to seek employment in services.
In a refreshing sign, the country received 831,000 tourists during August,
representing a 7 per cent growth.
However, domestic consumption has slowed, as shown in the collection of value
added tax which grew 9 per cent in August, compared to nearly 14 per cent in
July.
While private sector investment contracted in August, export value that exceeded
imports brought trade balance back to the positive territory, with Thailand
counting - US$329 million in trade surplus.
Given the stability of external factors, Thailand’s foreign currency reserve has
been steadily on the rise to stand at US$59 billion at end of August.
Headline inflation during the period is 3.8 and core inflation at nearly two per
cent. Unemployment at end of August remained low at 1.4 per cent. (TNA)
Genting International and Universal Studios plan joint venture in Singapore
Singapore will become host to a Universal Studios theme
park with 20 attractions if Malaysian gaming company Genting International
Ltd. wins the bid for the city-state’s second casino resort, a national
newspaper reported last Wednesday.
In an announcement made in Orlando, Florida, Genting and Universal said at
least 16 of the 20 rides and shows would be original or redesigned
specifically for the Sentosa Island resort, the Straits Times reported.
Universal Parks and Resorts, which will be Genting’s non-equity partner,
estimates its theme park would draw more than 5 million visitors a year.
In return, Genting, which is using the park to anchor its casino-resort bid,
will pick up the more than $1 billion tab Universal expects to spend on what
would be its first foray into Southeast Asia.
Genting has also partnered with Star Cruises Ltd. in the Sentosa bid.
Proposals for the resort are due Oct. 10 and the tender will be awarded at
the end of the year.
Other contenders include American gaming giant Harrah’s Entertainment Inc.
and Singapore property firm Keppel Land Ltd.; Las Vegas casino resort
developer Eighth Wonder Asia; and a joint venture between Kerzner
International Ltd. - which owns the Atlantis in the Bahamas - and
Singapore’s CapitaLand Ltd.
Singapore last year legalized casino gaming and said it would allow two
casino resorts to be built. The first was awarded in May to Las Vegas Sands
Corp. The $3.6 billion casino resort is expected to be operating by July
2009.
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