Is It Time to Pull the Plug

[Gonzo the Face]

 

Seems I am finding myself in a position I have never been in or felt before..   I can frankly say its a position I don't feel good about.
I have had The Pun Pun Guesthouse and Restaurant now for close to 25 years, Longer now than any other place I have ever lived in my entire life.  Its home for me in my heart. But for the past couple years, with government input and now the virus difficulties, its not fun any longer.  Guesthouses in Chiang Mai have been renting rooms to tourists and trekkers for how many years 75?, 100?, but then the government says guesthouses can no longer do nightly rentals, and stopped me from doing so. ..... Then you cannot sell beer and alcohol any longer.... Then the virus thing puts like the icing on the cake. Being unable to have a beer or glass of wine with ones meal also hurts the food business.  We used to have a number of church groups come by for breakfast and have a spot for their weekly discussions and meetings.  Most of those guys have gone home and have not been replaced, due to the virus and lockdown conditions.  Virus conditions have also impacted visits from loyal local customers, some of whom have been coming for weekly or monthly meals for over 20 years now.  Looking back thru past years records yesterday, I see that there were bygone days wherin we had daily sales greater than some monthly sales now,  I had hopes that this place was where I would finally give up being a workaholic.  It appears as that may be fate speaking, but for the wrong reason..  Now daily, I think, is it time to pull the plug and stop spending my wife's inheritance.  Literally my heart is heavy with just thinking about what to do.  I know a lot of places have closed down.  The Bangkok Post had an article talking about 30% of tourist related business' have shut down operations.  In my heart , I don't want to close and I will find it very difficult to overcome the heaviness inside from not seeing my years long term customers who are not only customers but more importantly, my dear friends now.
If you have read this far, I thank you for reading the ramblings of an old man.  THANK YOU!  The times have changed, the city has changed but to me, Pun Pun is still my home.  
The question must be decided by me..... To pull the plug or not to pull the plug, that is the question.....It may be inevitable, and I hope some of my friends do come by even if only to say good-bye.

[scammed]

i had a commitment i stayed in long past due date, with only expenses and no reward.

twas my last gf, same same but different, let it go and dont waste another baht,

you will regret every day you continue even long after you ended it, until your death actually

[Captain Monday]

A guest house cant do nightly rentals? What the hell is that? I thought it was monthly that was prohibited.

How are you supposed to make a living without items on a decent markup like alcohol?

 

Next years new normal will likely require prepaid itineraries where, Westerners at least, will be confined to resorts for 14 days or strictly led by the hand on minded tours where they have no contact with random locals and taken only to facilities owned by influential people. Definitely not foreign managed or owned. 

Good decision to pull the plug Gonzo.

 

What attracted me to Thailand initially included traveling to various places, without any reservations and staying at guesthouses and bungalows, trying local restaurants and street food. Having an evening beer with fellow travelers at the Guesthouses was big part of the fun. Restaurants need repeat customers and preferably localsfor low season. Many are leaving and the concept of retiring to Thailand won't have much appeal anymore.I have a chance to ever be let in again if things do not show marked improvement in a positive direction my Condo is going up for sale and I'm done. 

 

I have discovered a better option due to Covid and I don't have to take this malarky anymore.

[Keyser Soze666]

8 hours ago, scammed said:

i had a commitment i stayed in long past due date, with only expenses and no reward.

twas my last gf, same same but different, let it go and dont waste another baht,

you will regret every day you continue even long after you ended it, until your death actually

What kind of an anology, is that?? Comparing a 25 year old business to some ex Thai bird?? How odd.

[scammed]

8 minutes ago, Keyser Soze666 said:

What kind of an anology, is that?? Comparing a 25 year old business to some ex Thai bird?? How odd.

its in both cases a commitment with only a negative feedback and waste of money and time,

its impossible to forgive yourself when you didnt follow your instinct,

that instinct is accumulated wisdom, he knows its time to terminate it,

and if he doesnt follow his instinct he will live in regret til the end of his days

[Keyser Soze666]

9 minutes ago, scammed said:

its in both cases a commitment with only a negative feedback and waste of money and time,

its impossible to forgive yourself when you didnt follow your instinct,

that instinct is accumulated wisdom, he knows its time to terminate it,

and if he doesnt follow his instinct he will live in regret til the end of his days

I take it you lost a few bob, happened to many of us.

[jastheace]

sounds like @Gonzo the Face has made his mind up already.

yep. time to strip the beds back one last time and put your feet up.

will things improve? maybe sometime. when? maybe next week next month next year next millennia. 

take a well earned rest, and try to enjoy it. 

good luck.

this won't help i know, but i doubt you are the only one in this situation. i feel sincere for anyone trying to make a buck in the hospitality trade these days.

[lkv]

Cut the losses. 

 

In 1 year's time, you will be much poorer than you are today.

[meechai]

9 hours ago, Gonzo the Face said:

To pull the plug or not to pull the plug, that is the question

 

Sorry to hear of your toughening times but...To pull the plug or not was due back in 2016

Two years of Junta there was already enough to see/smell/taste the direction of Thailand

 

After that the things we cannot talk about also occurred sealing Thailand's future fate

 

A good sign was back then many long time business owners were selling up. You know them I'm sure UG

even folks like Duke etc...Even longtime blogger Stickman saw the writing on the wall & left

 

Yes only you can make the decision. Sadly it is not much different than folks who hung onto stocks

long after the sell date ...watching the value drop ever lower.

 

The one other option in both your scenario & the stocks scenario is really only for the young & healthy as they can afford

the time & money to perhaps ride out what could be a very long downturn

 

Chok Dee

 

 

[torturedsole]

10 hours ago, Gonzo the Face said:

The question must be decided by me.....

I'm sure you've considered the longterm global financial outlook, Gonzo.  But looking forward the sky appears even darker than looking back on these past four months.  

[Maha Sarakham]

Recognizing a lost cause early on will save you some heartbreak in the long run.  If you get out early enough in this financial fallout, you may be able to reinstate business operations at a later date when things have turned around.  Chances are things will be becoming increasingly vacant in the near future as more businesses fold, who knows, you may even find a better location at a better rate later on.  Alternatively, you could consider reinventing the Pun Pun under a new business model that doesn't involve nightly guesthouse rentals.  Either that, or explore taking up business operations in an up-and-coming retirement and tourist destination like Vietnam.  It really is a great country too.

[opalred]

i leaned 16 yrs ago after losing money / took notice of old timers /you come here to enjoy a holiday 

dont go into/ or do any business here you will lose 

[BritManToo]

You should have pulled the plug 2 months back.

Now CAAT have extended the ban on International passenger arrivals, you're just throwing good money after bad.

This situation and international travel isn't going to get better anytime soon IMHO.

[BritManToo]

8 hours ago, Captain Monday said:

if things do not show marked improvement in a positive direction my Condo is going up for sale and I'm done. 

Good luck with that one!

[ChakaKhan]

Can you rent the rooms to expats as studios?  I have live in many a GH long term as they knew me from a nightly guest in the past and knew I was a good tenant....My friend also rented his place in low season to long terms renters....he had long terms renters---daily renters and also a few nicer rooms on Airbnb in CNX

[tandor]

12 hours ago, Keyser Soze666 said:

What kind of an anology, is that?? Comparing a 25 year old business to some ex Thai bird?? How odd.

..if you start to think its time to go, then youve already answered your own question..i think its a very appropriate analogy.

[tandor]

..good luck to you Leung John wherever you may go..keep in touch..your Superman Breakfast lives on in my belly forever.

[Keyser Soze666]

10 minutes ago, tandor said:

..if you start to think its time to go, then youve already answered your own question..i think its a very appropriate analogy.

Do you. I think it's utterly laughable. So let's agree to disagree.

[JimGant]

Forget the emotions -- can you survive a negative cash input for the next 6 to 12 months? This means, of course, do you have a cash cushion to get by on the basics? If you answer 'yes,' regardless of the inconvenience of the situation, I'd say: Hang in there.

Why? Because there may be a tourist influx to Thailand due to it's superior handling of the covid19 problem. Just today we saw in the news that New Zealand and Thailand were on the same page for addressing the corvid19 crisis. What this says for future tourism is that, Thailand can be a destination for tourists looking for virus-free locales.

Anyway, if you've got the cash flow for awhile, suggest you hang in there for awhile -- before deciding to punt.

[Jack Hna]

It's time to trim the COB down a lot and weather the storm. Maybe set up a much smaller business using existing resources and new technology. For example; food delivery via grab. Absolutely thriving. 

 

Could you not offer long term rental?

 

Whilst it is quiet you could also improve your web presence and get some decent photos on mass travel sites like TA.

 

 

Edited July 23, 2020 by Jack Hna

[Dogbarker]

 Sure sorry to hear your position  and sure life will get increasingly difficult for you to operate. You have a great prime location .... perhaps it would be good to make the transition and sell to a small developer?Good luck with your decision whatever and wish you well .

[trucking]

On 7/22/2020 at 1:23 AM, Gonzo the Face said:

The times have changed,

 

Indeed they have and I can't think of any country where they have changed for the better.

 

I was watching a couple of vlogs from guys who have spent a lot of time in China but have now thrown in the towel as the country has become increasingly xenophobic.

 

 

[phantomfiddler]

Regrettably it would appear that Thailand is doomed as far as tourist related businesses are concerned. Between the drastic shortage of customers, the sad fact that westerners are targeted as prey by the police for extortion of often large sums, and the general feeling of not being welcome by the powers that be, I see no hope ???? It could be coincidence but I have a feeling it is not, whereby the tourist trade enjoyed a steady progressive rise from the late 70,s right up until the most recent change in government, which also coincided with the arrival of masses of Asians from that triangular place to the west. From this point it was a steady inexorable downward dive, and it does not look like things are going to change. Unfortunately for those of us who would wish to cut and run, selling property has become nigh impossible, nobody wants to buy a berth in a sinking ship ????

[orang37]

I wish you the best, Khun Gonzo, but, the fact is that you have not promoted yourself in the ways other successful guest houses have done in the last 15 years. Where are the positive reviews on TripAdvisor, etc. Given the throngs of expat digital nomads making half-decent websites on the cheap, here: why don't you have a well-designed one ? Your website and FaceBook page are way behind the times.

 

The economic downturn now is unique and is impacting every sector.

 

While your location, and condition of building and rooms may be constraints, you are to some degree responsible for your current situation, not 100% a victim.

 

~o:37;

[Jack Hna]

Fair play for coming on here and being real and seeking input. A brave face amongst many unbrave.

[robblok]

You could stop or go on. If you are not making any money and it was bad before the covid situation then I would stop. Best not to sink too much money into something that is not viable.

 

However if you were making good money pre covid there is a chance it will get back better later on. However then you need to have money to sustain yourself in the meanwhile. 

 

It could be quite some time before there is a profit again. It really depends on the kind of costs that you have. If you have costs like rent that keep going even when closed you have to figure out how much it would cost you to say stay locked for a year. If that is too much and business was not good before I would advise you to stop.

 

But without having really seen the books and knowing your costs its hard to give a good reply without knowing all details. 

[OneMoreFarang]

On 7/22/2020 at 3:23 PM, Gonzo the Face said:

I have had The Pun Pun Guesthouse and Restaurant now for close to 25 years

Do you own it?

Would it be possible it close it down and maybe reopen it in a year?

I know that is not what you want but maybe that is a possibility. If you "pause" it then you can later decide if you press play or stop.

[RichardColeman]

I have seen a huge boom in businesses for sale in the tourist sector appearing on my fb now. Issue is not so much selling it and moving on, as actually being able to sell it at a reasonable price

[wombat]

15 hours ago, lkv said:

Cut the losses. 

 

In 1 year's time, you will be much poorer than you are today.

i agree

pull the pin mate and enjoy your memories

[1FinickyOne]

This happens. Sorry for your dilemma but I had to close a no longer viable business once too...

 

Try and keep your face forward looking and as for me, hope your next project will be enjoyable too...

 

Best of luck.