1bn baht revenue generated from Phuket Sandbox

[wombat]

2 hours ago, steven100 said:

wow  !   One Billion baht made in the middle of Covid 

 

amazing Thailand ....  can turn a s_it situation into a huge money maker 

The washing machines gave out figures?

[Walker88]

In the financial footnotes, did I see that 95% of that billion baht was from airport-to-hotel taxi fare ripoffs?

 

Seriously, this article redefines the phrase 'drop in a bucket'.

 

While a billion baht is great for the few who benefit from it, and clearly welcome, it is hardly 'biscuits and gravy' time again.

 

Rather than be swamped by The Law of Large Numbers, put it in perspective. It's $30 million in a $500 billion economy (all Thailand), or .006% of GDP.

 

Be thankful for it, but the celebration is a bit premature.

 

 

[Caspersfriend]

3 minutes ago, nkg said:

 

You're probably correct - I just quickly worked out the cost using the figures supplied by ThailandRyan. I've got no idea where CESA get these figures from anyway. If I go to the 7/11 and pay cash for a beer, is there a man with a calculator tracking my movements? They are just guessing. But $50-$100 a day isn't a completely crazy figure.

Get with the times. Haven't you noticed the prevalence of drones operating around 'tourist safe' areas on Phuket? ????

[maddermax]

Yes, but in whose pockets??!!

[Bangkok Barry]

5 hours ago, webfact said:

Mr Thanakorn also called for local villagers to be good hosts to visitors, giving them a good impression while ensuring their safety.

Not murdering them might be a good start with that.

[club]

Making money while the rest of people in Thailand are loosing their Businesses , money , jobs , homes and most importantly their life's. It really puts a bad state in your mouth to know the people that came up with this idea care more about making money then making Thailand healthy again

[raccos21]

I am totally believe them because......

 

[Mister MXYZPTLK]

Do the math!  1B divided by 17,000 tourists is approximately $1900 USD per person.

take 335,000 hotel nights at an average of $100 USD/night and that’s approximately $1400

(assuming 14 nights since domestic air travel is grounded).

So outside of hotels, the local economy received $500 (divided by 14 days) or $35/day in tourist income.

 

We’ll BUST MY BUBBLES!  FANTASTIC!  Time to go shopping for a YACHT!  WHOOPPIE!

[ThailandRyan]

4 minutes ago, raccos21 said:

I am totally believe them because......

 

x3 per visitor x15k....yes sir.

[pagallim]

5 minutes ago, club said:

Making money while the rest of people in Thailand are loosing their Businesses , money , jobs , homes and most importantly their life's. It really puts a bad state in your mouth to know the people that came up with this idea care more about making money then making Thailand healthy again

The reality is, inspite of articles such as this, Phuket is no different than the rest of Thailand.   The Sandbox hasn't produced any tangible benefit to local people, businesses are still going bust, people are still queuing for food handouts, and some resorting to taking their own lives (or others).   

[wensiensheng]

11 minutes ago, pagallim said:

The reality is, inspite of articles such as this, Phuket is no different than the rest of Thailand.   The Sandbox hasn't produced any tangible benefit to local people, businesses are still going bust, people are still queuing for food handouts, and some resorting to taking their own lives (or others).   

An indication of the difference made to the real local economy is that in Kata the only shop that I have seen reopen since 1st July is a family mart situated in Kata Noi. Other than that, as far as I can see, all the others remain closed as before. I haven’t gone down every side street, just the main road either side of Club Med and around the corner toward Nai Harn, but I see no indication that the Sandbox has made any difference to the local economy.

[farangroby]

6 hours ago, webfact said:

generated around 1 billion baht in cashflow since it opened last month. The island has so far welcomed around 17,000 international arrivals

67,000 baht per person, tourists "keeniao", a bit more than backpakers

[hioctane]

47 minutes ago, Mister MXYZPTLK said:

Do the math!  1B divided by 17,000 tourists is approximately $1900 USD per person.

take 335,000 hotel nights at an average of $100 USD/night and that’s approximately $1400

(assuming 14 nights since domestic air travel is grounded).

So outside of hotels, the local economy received $500 (divided by 14 days) or $35/day in tourist income.

 

We’ll BUST MY BUBBLES!  FANTASTIC!  Time to go shopping for a YACHT!  WHOOPPIE!

The average hotel cost is nowhere close to that. On the low end, it averages about $20/night. Some high rollers might spring for $50 rooms. A minority stay in $100+. Although this is Thailand and there are not many rooms so expensive. Have you even been to Thailand??

 

Also the average stay was said to be around 11 days. It sounds about right because American tourists like to wrap their holidays around 2 weekends.

 

Hotels IS local economy. Who do you think greets you, serves you, cleans your room, take take care of the property. Hotels creates lots of local jobs.

 

These locals are not looking to get rich. They just want to put food on the table! Think twice about taking it out on locals. They need our support.

[Fairynuff]

I’d love to meet TAT accountants.

[stigar]

Im not surprised..this money number one reminds me of my exwife.Whatever subject i wanted to talk about she just talk about money.

[Sydebolle]

In a country where time is split into 4 x 6 hours, plastic bags, rope and hoses are sold by the kilogramme and batteries can be bought only by the whole box (Makro).........

How on Earth is it possible to work out the billion revenue by 15'000 passengers in 39 days? 

The Samui figure of 345 in the first two weeks is more realistic and you would have to ask every food-selling grannie along the road as well as possibly the pretties offering their services these days through Line and other social media platforms on the "real" spending. 

Stop wasting your times with obvious lies and tell the clowns at the tourism promotion board to get out and start doing something along the "promotion" line. All these statistics, completely overinflated, serve only to please the higher-ups who, in turn look good in the eyes of the even-higher-ups. 

Face, face, face ........ go figure and explain all this to the millions of people without income, starving along the Bali Hai beach in Pattaya or all those demonstrators who were fighting against tear gas and water cannons - while the establishment blew its own trumpet - again. Pathetic! 

[Walker88]

13 minutes ago, hioctane said:

The average hotel cost is nowhere close to that. On the low end, it averages about $20/night. Some high rollers might spring for $50 rooms. A minority stay in $100+. Although this is Thailand and there are not many rooms so expensive. Have you even been to Thailand??

 

Also the average stay was said to be around 11 days. It sounds about right because American tourists like to wrap their holidays around 2 weekends.

 

Hotels IS local economy. Who do you think greets you, serves you, cleans your room, take take care of the property. Hotels creates lots of local jobs.

 

These locals are not looking to get rich. They just want to put food on the table! Think twice about taking it out on locals. They need our support.

I'm going to guess the actual tourists (as opposed to returning Thais or folks with wife/family/condo in Thailand who came via the Sandbox) are not going to jump through all those hoops to stay in a $20 baht a night room. Nor a $50 room.

 

I'm in Thailand. My hotel is mid-range and costs almost $100 (with the discount). I've been in this same hotel for 10 months now, and many of the customers I see coming are newly arrived, having done ASQ or the Sandbox. I would go out on a limb and guess they are the norm of 'tourists' doing the hoop jumping at this time in the Covid Era. They are not low end 'Cheap Charlies'. Granted few are booking the 435,000 baht/night top room at the Oriental in BKK, nor are they going 'suite' at The Davis, but any major chain (Hyatt, Sheraton, Sofitel, Marriott) or any local good hotel (e.g., The Landmark) is going to run $100+ per night. Phuket is no different. Upscale is the likely demographic at the moment...folks with both time and money, plus a little spirit of adventure.

 

Yes, anything is better than nothing, but I think the poster to whom you responded engaged in some very reasonable math. Hotel staff may have been called back to duty (good), but the amount of money noted as spent leaves precious little for the benefit of out-of-the-hotel shops and vendors.

 

Kudos for Phuket trying, but the program seems to have been of minimal overall value, and likely far less than for what was hoped.

[carlf]

1bn baht revenue?  Well has anyone tried to figure out how many of those "Phuket Sandboxers" are actually already residents of Thailand, and just returning (as opposed to "tourists") to Thailand?  If they are residents, they probably just prefer doing two weeks penance in Phuket as opposed to two weeks in a Bangkok ASQ.  So this means that they've successfully taken money from Bangkok ASQ hotels and just transferred it to Phuket.  Little net financial gain to the country for those cases.

[club]

23 minutes ago, hioctane said:

The average hotel cost is nowhere close to that. On the low end, it averages about $20/night. Some high rollers might spring for $50 rooms. A minority stay in $100+. Although this is Thailand and there are not many rooms so expensive. Have you even been to Thailand??

 

Also the average stay was said to be around 11 days. It sounds about right because American tourists like to wrap their holidays around 2 weekends.

 

Hotels IS local economy. Who do you think greets you, serves you, cleans your room, take take care of the property. Hotels creates lots of local jobs.

 

These locals are not looking to get rich. They just want to put food on the table! Think twice about taking it out on locals. They need our support.

You can get a 5 star hotel anywhere from 50 USD to 125 USD. 4 star many under 50 USD The only problem with Phuket is hardly anything is open. No Walking street ,no bars , Few restaurants and with no domestic travel. So if you love living out of a hotel for 2 weeks and eating the same Hotel Restaurant go for it

[kotsak]

5 hours ago, ChaiyaTH said:

5 hours ago, Sharp said:

OK so income 

1 Flights ✅

2 Rich Hoteliers ✅

3 Covid tests ✅

Local business owners❌

 

Expand  

Only no. 3 is actually profitable at this stage.

And anything else related to covid as well. 

[orchidfan]

Can one of you financial wizards explain to me the difference between "cashflow" (referred to in the article ) and "revenue"? Or are they the same thing from an accounting point of view ?

[Kalasin Jo]

5 hours ago, nkg said:

 

Yes, that's about right. Using your figures:

 

1,000,000,000 / 15,000 / 39

= 1,709 baht/day per person

 

$51/day. That's not a huge amount of money to spend on holiday, surely, when you include the cost of your hotel?

 

I suppose if you booked the cheapest SHA+ hotel on the island, and spent 14 days in your room eating Mama noodles and drinking lao khao, you might be able to spend less than 1,000 baht a day ...

Exactly. Hardly big spenders even if the numbers are correct. Of course even in Europe if you mention any sum involving the word billion for most all they wrongly hear is the sound of cash registers constantly ringing. 

[Caldera]

While 1 billion sounds impressive, it really isn't all that much. To put this into perspective, I just bought a box of 5 Covid home test kits for 1,400 baht. They are probably selling a few million of those boxes right now, which amounts to a few billion baht. More than the entire Phuket sandbox has generated so far.

 

[joecoolfrog]

5 hours ago, nkg said:

 

Yes, that's about right. Using your figures:

 

1,000,000,000 / 15,000 / 39

= 1,709 baht/day per person

 

$51/day. That's not a huge amount of money to spend on holiday, surely, when you include the cost of your hotel?

 

I suppose if you booked the cheapest SHA+ hotel on the island, and spent 14 days in your room eating Mama noodles and drinking lao khao, you might be able to spend less than 1,000 baht a day ...

So you think 15,000 individidual visitors have each stayed on the island for the past 39 days....lol

[khunPer]

In a way I'm surprised over how much attention the Sandbox-project gets - it must also have costed a bit of money to reach the status where it is now - approx 14,000 arrivals in a month, of which some might not at all be tourists, and a turnover of estimated 1 billion baht so far, of which 800 million were the figure from the first month. There came 7.6 million tourists to Phuket in 2018, which are in average 633,000 each month, so 14,000 is around two percent of "normal"; 2.21 percent to be precise. Each arrival is "worth" circa 57,000 baht (i.e. 800 million divided with 14,000 arrivals).

 

The estimate of 100,000 tourists in total from July till September, "and a total revenue target of 8.9 billion baht in the same period", equals an average of 89,000 baht per person. Earlier I read an estimate of 120,000 arrivals in several news articles, but even with the new total of 100,000 it's another 86,000 arrivals, or 43,000 each month, in August and September.

 

I compare this with the low interest for the relative high number of expats living in Thailand with a life-style based on money coming in from abroad. Numerous of those being married to a Thai must be retirees in one or other way, so they are not working, and therefore each bringing around 400,000 baht into the country, if using the official minimum "rate", which in real-life average might be in the low end. And a number of expats are staying on retirement conditions, who in average use their 800,000 baht per year, probably more.

 

Those expats that settled and started a business in Thailand also brought funds in for their initial investment, but they most likely don't import money every month, when having a "successful business in Thailand".

 

To my knowledge we don't have any official statistics on the expat-numbers, but I know of a 2010-study form Mahidol University, which concluded that there were 2,581,141 foreigners living in Thailand, and when disregarding South East Asians, i.e. numerous migrants workers, about 720.000 were so-called "expats". The major groups were 141,000 Chinese, 85,000 Brits, 80,000 Japanese, 46,000 Indians, 40,000 Americans, 24,000 Germans, and 23,000 French.

The financial magazine Bloomberg reported that in 2018 there were issued 80,000 retirement visas (? -or perhaps combined with extensions of stay based on retirement?), where Brits counted for 16 percent, Americans for 12 percent, Germans for 9 percent, Chinese for 7 percent, and Swiss for 6 percent.

 

Elite Card had 8,602 cardholders in 2019, they are said to have increased a relative lot during the pandemic, but the number of people is small, compared to above estimates.

 

Now, lets just take the approx 80,000 people known to stay on retirement conditions. If they in average each brings 800,000 baht into the country, then we are talking about 64 billion baht "turnover" - it's 64 times as much as so far generated from the Sandbox, but those foreigners and their money don't get much attention. Compare that to the estimated "dream" of 100,000 Sandbox-arrivals and 8.9 billion baht.

 

A number of retirees have brought money in to buy property, one or other way, and it's my impression that when we talk "retirement extension" the average consumption is higher than 800,000 baht a year, an average around a million baht would be more realistic.

 

So out of the 720,000 estimated in the 2010-study, there would be around 640,000 foreigners staying under other conditions, of which at least some don't work and "import money", and quite a number also "invest" in property. Unfortunately it can only be a guess, but I would think that at least an equal number of expats staying based on marriage with a Thai, as the number on expats staying based on retirement - probably more - are retirees that in average brings in their 400,000 baht per year. That would be at least another 32 billion baht per year.

 

My point is that the non-working expat group actually is of quite some financial importance for the Kingdom, at least 100 times more worth than a month of Phuket Sandbox, and more than 10 times worth the whole three-month Sandbox-dream.

 

Perhaps the nation should care little more about that group, for example making it a bit more attractive, and less complicated for "quality"-long-staying expats, to be "retired in amazing Thailand" - also when based on marriage - there are probably a huge lot more potential in the average 800,000 baht group, than the millions of filthy wealthy "quality-retirees" somebody in the government seems to dream about.

????

[ThailandRyan]

Just now, khunPer said:

In a way I'm surprised over how much attention the Sandbox-project gets - it must also have costed a bit of money to reach the status where it is now - approx 14,000 arrivals in a month, of which some might not at all be tourists, and a turnover of estimated 1 billion baht so far, of which 800 million were the figure from the first month. There came 7.6 million tourists to Phuket in 2018, which are in average 633,000 each month, so 14,000 is around two percent of "normal"; 2.21 percent to be precise. Each arrival is "worth" circa 57,000 baht (i.e. 800 million divided with 14,000 arrivals).

 

The estimate of 100,000 tourists in total from July till September, "and a total revenue target of 8.9 billion baht in the same period", equals an average of 89,000 baht per person. Earlier I read an estimate of 120,000 arrivals in several news articles, but even with the new total of 100,000 it's another 86,000 arrivals, or 43,000 each month, in August and September.

 

I compare this with the low interest for the relative high number of expats living in Thailand with a life-style based on money coming in from abroad. Numerous of those being married to a Thai must be retirees in one or other way, so they are not working, and therefore each bringing around 400,000 baht into the country, if using the official minimum "rate", which in real-life average might be in the low end. And a number of expats are staying on retirement conditions, who in average use their 800,000 baht per year, probably more.

 

Those expats that settled and started a business in Thailand also brought funds in for their initial investment, but they most likely don't import money every month, when having a "successful business in Thailand".

 

To my knowledge we don't have any official statistics on the expat-numbers, but I know of a 2010-study form Mahidol University, which concluded that there were 2,581,141 foreigners living in Thailand, and when disregarding South East Asians, i.e. numerous migrants workers, about 720.000 were so-called "expats". The major groups were 141,000 Chinese, 85,000 Brits, 80,000 Japanese, 46,000 Indians, 40,000 Americans, 24,000 Germans, and 23,000 French.

The financial magazine Bloomberg reported that in 2018 there were issued 80,000 retirement visas (? -or perhaps combined with extensions of stay based on retirement?), where Brits counted for 16 percent, Americans for 12 percent, Germans for 9 percent, Chinese for 7 percent, and Swiss for 6 percent.

 

Elite Card had 8,602 cardholders in 2019, they are said to have increased a relative lot during the pandemic, but the number of people is small, compared to above estimates.

 

Now, lets just take the approx 80,000 people known to stay on retirement conditions. If they in average each brings 800,000 baht into the country, then we are talking about 64 billion baht "turnover" - it's 64 times as much as so far generated from the Sandbox, but those foreigners and their money don't get much attention. Compare that to the estimated "dream" of 100,000 Sandbox-arrivals and 8.9 billion baht.

 

A number of retirees have brought money in to buy property, one or other way, and it's my impression that when we talk "retirement extension" the average consumption is higher than 800,000 baht a year, an average around a million baht would be more realistic.

 

So out of the 720,000 estimated in the 2010-study, there would be around 640,000 foreigners staying under other conditions, of which at least some don't work and "import money", and quite a number also "invest" in property. Unfortunately it can only be a guess, but I would think that at least an equal number of expats staying based on marriage with a Thai, as the number on expats staying based on retirement - probably more - are retirees that in average brings in their 400,000 baht per year. That would be at least another 32 billion baht per year.

 

My point is that the non-working expat group actually is of quite some financial importance for the Kingdom, at least 100 times more worth than a month of Phuket Sandbox, and more than 10 times worth the whole three-month Sandbox-dream.

 

Perhaps the nation should care little more about that group, for example making it a bit more attractive, and less complicated for "quality"-long-staying expats, to be "retired in amazing Thailand" - also when based on marriage - there are probably a huge lot more potential in the average 800,000 baht group, than the millions of filthy wealthy "quality-retirees" somebody in the government seems to dream about.

????

They have to make it look good in order to keep the dream of tourism alive and in peoples minds, regardless of what it is actually costing and if they are going into the hole financially or not.  Appearance and FACE are the same.

[WingFat]

1 Billion baht in one month = about $32 million in USD...cough, cough, bulls**t, bulls**t...the real scary thing is these officials probably believe their own bulls**t.

[newnative]

13 minutes ago, khunPer said:

In a way I'm surprised over how much attention the Sandbox-project gets - it must also have costed a bit of money to reach the status where it is now - approx 14,000 arrivals in a month, of which some might not at all be tourists, and a turnover of estimated 1 billion baht so far, of which 800 million were the figure from the first month. There came 7.6 million tourists to Phuket in 2018, which are in average 633,000 each month, so 14,000 is around two percent of "normal"; 2.21 percent to be precise. Each arrival is "worth" circa 57,000 baht (i.e. 800 million divided with 14,000 arrivals).

 

The estimate of 100,000 tourists in total from July till September, "and a total revenue target of 8.9 billion baht in the same period", equals an average of 89,000 baht per person. Earlier I read an estimate of 120,000 arrivals in several news articles, but even with the new total of 100,000 it's another 86,000 arrivals, or 43,000 each month, in August and September.

 

I compare this with the low interest for the relative high number of expats living in Thailand with a life-style based on money coming in from abroad. Numerous of those being married to a Thai must be retirees in one or other way, so they are not working, and therefore each bringing around 400,000 baht into the country, if using the official minimum "rate", which in real-life average might be in the low end. And a number of expats are staying on retirement conditions, who in average use their 800,000 baht per year, probably more.

 

Those expats that settled and started a business in Thailand also brought funds in for their initial investment, but they most likely don't import money every month, when having a "successful business in Thailand".

 

To my knowledge we don't have any official statistics on the expat-numbers, but I know of a 2010-study form Mahidol University, which concluded that there were 2,581,141 foreigners living in Thailand, and when disregarding South East Asians, i.e. numerous migrants workers, about 720.000 were so-called "expats". The major groups were 141,000 Chinese, 85,000 Brits, 80,000 Japanese, 46,000 Indians, 40,000 Americans, 24,000 Germans, and 23,000 French.

The financial magazine Bloomberg reported that in 2018 there were issued 80,000 retirement visas (? -or perhaps combined with extensions of stay based on retirement?), where Brits counted for 16 percent, Americans for 12 percent, Germans for 9 percent, Chinese for 7 percent, and Swiss for 6 percent.

 

Elite Card had 8,602 cardholders in 2019, they are said to have increased a relative lot during the pandemic, but the number of people is small, compared to above estimates.

 

Now, lets just take the approx 80,000 people known to stay on retirement conditions. If they in average each brings 800,000 baht into the country, then we are talking about 64 billion baht "turnover" - it's 64 times as much as so far generated from the Sandbox, but those foreigners and their money don't get much attention. Compare that to the estimated "dream" of 100,000 Sandbox-arrivals and 8.9 billion baht.

 

A number of retirees have brought money in to buy property, one or other way, and it's my impression that when we talk "retirement extension" the average consumption is higher than 800,000 baht a year, an average around a million baht would be more realistic.

 

So out of the 720,000 estimated in the 2010-study, there would be around 640,000 foreigners staying under other conditions, of which at least some don't work and "import money", and quite a number also "invest" in property. Unfortunately it can only be a guess, but I would think that at least an equal number of expats staying based on marriage with a Thai, as the number on expats staying based on retirement - probably more - are retirees that in average brings in their 400,000 baht per year. That would be at least another 32 billion baht per year.

 

My point is that the non-working expat group actually is of quite some financial importance for the Kingdom, at least 100 times more worth than a month of Phuket Sandbox, and more than 10 times worth the whole three-month Sandbox-dream.

 

Perhaps the nation should care little more about that group, for example making it a bit more attractive, and less complicated for "quality"-long-staying expats, to be "retired in amazing Thailand" - also when based on marriage - there are probably a huge lot more potential in the average 800,000 baht group, than the millions of filthy wealthy "quality-retirees" somebody in the government seems to dream about.

????

  Great post and I totally agree. 

[Caldera]

Numbers in August and September are bound to go down. Those who were really desperate to come did so in July, plus now there's more Covid, domestic travel restrictions and the rainy season.

 

Even without the negative press due to the murder case, I don't see how they could have met their 100,000 visitors target for the first three months.

[Caxa]

Don't confuse cashflow with profit.

A cashflow figure is meaningless without a percentage profit margin.

The figure could be ten times greater and you could still, in reality, be loosing money.