Chonburi must improve workforce, Internet use to become MICE center, deputy governor says

Deputy Governor Pongsak Preechawith addresses a tourism and business representatives meeting in Pattaya.

Phasakorn Channgam

Chonburi must improve its labor force and make better use of the Internet if it hopes to become a legitimate center for international conventions and business meetings, the province’s deputy governor told a tourism and business representatives meeting in Pattaya.

At a Sept. 6 Meetings, Incentives, Conventions and Exhibitions Tourism meeting at the Hotel J, Deputy Governor Pongsak Preechawith said government and the private sector must collaborate to raise the service levels and business skills of workers and provide more and better information online in order to become a MICE center.

Pongsak cited a 2009 World Economic Forum study which rated Thailand only 39th in the world as a tourism destination due in large part to its government and the country’s basic level of hotel and tourism service.

While the study did say that the Eastern Seaboard’s strong transportation infrastructure - with easy links to two airports and the country’s major seaport - makes it an attractive venue, the relatively poor foreign-language skills of its workers and their unfamiliarity with the MICE market put the area at a disadvantage.

“The labor force is still considered subpar by MICE standards and does not have a proper understanding of MICE tourists, who are different from conventional tourists,” Pongsak said.

Another factor that needs improvement is the government and private sector’s use of the Internet as a media for disseminating information and promotions.

But with Thailand again finally seeing a growth in tourists - 15.9 million in 2010, up from less than 14.5 million in 2008 and 2009, the country still has potential to attract more people, the deputy governor said.

Nova Group hotels featured at German-Thai Chamber meeting

Michael Procher.

Peter Kühlwein

The general manager for three Nova Group hotels provided an overview of the resorts at the September meeting of the German-Thai Chamber of Commerce.

Michael Procher, top man at Amari Nova Suites, Nova Gold and Nova Platinum, said Amari, which manages the three properties, chose to work with Pattaya’s home-grown Nova Group because it “is one of the most successful und reliable development and construction companies … well known for its high quality.”

Dr. Florian Kirschner.

The top hotel in the trio is the Amari Nova Suites, he said. It offers 77 rooms and excellent service and facilities. The Nova Gold also offers 77 rooms that are comfortably furnished and provide a computer in each room. And the Nova Platinum has three buildings and 270 rooms near Walking Street.

Chamber members took in all the hotel information before enjoying a buffet dinner around the Nova Platinum’s pool.

Isolde Felskau from the German Embassy and Peter Wolf, acting
director of BMW in deep conversation.

Dr. Paul Strunk, the German consul with its wife Uschi and other guests of the German-Thai Chamber.

Cabinet approves Bt350 billion deficit budget for 2012 fiscal year

The Cabinet on Tuesday approved a budget deficit of Bt350 billion for the 2012 fiscal year, starting Oct 1, according to Finance Minister Thirachai Phuvanatnaranubala.

Of the total budget, annual government spending was approved at Bt2.33 trillion, an increase of 7.4 percent from the fiscal 2011 budget at Bt2.1 trillion.

The investment budget, counting for 16.5 percent of the overall budget, was agreed at Bt380 billion, an 8.1-percent increase year-on-year.

The next fiscal year’s revenue is aimed at Bt1.98 trillion, a rise of 11.9 percent from that of Fiscal Year 2011 at Bt1.77 trillion.

The total budget approved was based on economic conditions in 2012 forecast to expand at 4.5-5.5 percent and have inflation rates at 3-4 percent.

In this regard, Deputy Finance Minister Boonsong Teriyapirom said among other issues the Cabinet approved on Tuesday were an extended period for a diesel tax cut and the Pheu Thai Party’s first-car project.

The fuel tax cut, which is to last until Dec 31, will affect Excise Department revenues of Bt25 billion, but the government is trying to maintain the tax rate at Bt0.0050 from the current rate of Bt5.31, Boonsong said.

The first-car project, also approved by the Cabinet, is to begin Friday and continue until Dec 31 next year in order to help middle-income earners otherwise unable to afford their first cars. Around 500,000 vehicles are projected to be sold according to the program.

Conditions include that the car must have no more than a 1500cc engine or priced no more than Bt1 million if it is a pick-up truck with more than a 1500cc engine, while buyers must be at least 21 years old and possess the vehicle for their own use for the period of five years. Car owners can redeem compensation from the government equal to their vehicles’ excise tax of not more than Bt100,000 after one year of possessing the vehicle.

Meanwhile, deputy government spokeswoman Anuttama Amornwiwat said the Cabinet also approved the National Rice Policy Committee’s proposal on the 2011/2012 rice mortgage scheme for in-season unmilled rice, which is to start Oct 7 and continue until Feb 29.

The criterion for mortgaged rice is that the level of humidity per ton of unmilled rice must be under 15 percent. The mortgage price for Hom Mali fragrant rice (Thai jasmine rice) is set at Bt20,000, Thai Pathumthani fragrant rice at Bt16,000, while other types of fragrant rice are at Bt18,000, and 100 percent unhusked rice at Bt15,000.

The Commerce Ministry will find additional sources of funds for this Bt400 billion program. (MCOT)

Thailand-India FTA tax privilege benefits 900 Thai items

The Free Trade Agreement (FTA) between Thailand and India will provide tax privilege benefits to at least another 900 Thai items for goods categorized under ‘Product Specific Rules’ (PRS) and merchandise needing Rules of Origin requirements, according to Thailand’s Trade Negotiations Department director-general.

Thai representatives, led by Director-General Srirat Rastapana, recently went to India for to meet their Indian counterparts at the 21st Thailand-India Trade Negotiating Committee in the capital, New Delhi, to negotiate free trade, services, investment, and other economic cooperation between the two nations.

Other benefits from the negotiation included creative economy, construction, tourism, and the development of small- and medium-sized enterprises (SMEs).

Beginning in 2004, the Thailand-India Free Trade Agreement covered trade in goods by 2010. To speed up tariff reductions, both countries agreed to implement an Early Harvest Program (EHS) for 82 items of merchandise which had tariffs reduced to 0 percent - entirely removed - since Sept 2006.

Bilateral negotiations later stopped, as India needed to priorities its free trade with the Association of South East Asian Nations (ASEAN).

Thailand and India resumed negotiations in Dec 2010 and agreed the bilateral FTA with improved benefits to the ASEAN-India FTA, complying with Thailand’s goal to become India’s partner at a strategic level; for instance, increasing the number of goods penetrating the market and the period of tax reduction and/or cancellation faster to that of the ASEAN-India FTA.

India is Thailand’s number one trading partner in South Asia and is the door for Thailand to other markets in the region such as Nepal, Bhutan, Sri Lanka, and Bangladesh. In the world market, India is Thailand’s 17th ranked trading partner and number 11 as an export market.

Bilateral trade between the countries in the first half of 2010 was valued at US$4.1 billion, a 29 percent increase year-on-year. Of the total, Thailand’s exports to India were worth $2.6 billion, while its imports from India were $1.5 billion. (MCOT)