Elite Card

[phaw-boon-tham]

Elite Card board calls debt-crisis meeting

Published on Sep 22, 2004

Thailand Privilege Card Co’s board will convene today to tackle Thailand Elite Card’s massive debt problems, which are putting the project at risk.

The agenda will be how the company will pay a Bt149-million debt to Cable News Network (CNN) which is responsible for world-wide advertisement of the card project through the network and two sister international publications – Time and Fortune magazines.

According to Thailand Privilege Card Co president Choksiri Rodboonpha, the board will also discuss 20 other spending items, though he declined to specify the firm’s total liabilities.

“We really want to clear things up, but in doing so, we have to listen to a number of agencies involved with the company,” Choksiri said.

Finance Ministry permanent secretary Somchainuk Engtrakul will chair the meeting and representatives from the Tourism Authority of Thailand and Thai Airways International will attend.

Thailand Privilege Card is responsible for marketing the Thailand Elite Card – the world’s first country-membership club for “friends” of Thailand. Members are entitled to benefits and privileges throughout the Kingdom, but some of these privileges have been rescinded.

The company was originally expected to sell 100,000 cards at a Bt1 million each, but so far, Choksiri said, it has found only 660 customers.

Despite financial problems, the project continues, and yesterday the company embarked on a market network expansion project, signing contracts to appoint representatives for Benelux, Russia and Germany, as the first step toward marketing in Europe.

The company appointed Intimex Holding Ltd, and Elite Card International Fund Management BOVI and Thai Elite CIS as country representatives in the Benelux countries and Russia.

The company also signed a memorandum of understanding with Intimex Holding Ltd, Penning CS to market the programme in Germany.

“Benelux is a gateway to Europe and the main target area [includes] the Netherlands and Belgium, while Russia is a very interesting market not only for Elite Card, but for general tourists,” Choksiri said.

He said the company planned to expand its network to other countries, such as the US and Britain. It has appointed marketing representatives in Japan, Taiwan, Hong Kong, China, South Korea, Malaysia, Singapore and Macao.

The company expects to secure 2,000 to 3,000 members in each of the countries during the next two to three years, he said.

Suchat Sritama

The Nation

[dr_Pat_Pong]

Is anyone really surprised ? Fearless Leader will just run a National Lottery to get it out of trouble.

[penelope]

Personally, I'd rather carry an Amex black card.

[ovenman]

Thailand Privilege Card Co’s board will convene today to tackle Thailand Elite Card’s massive debt problems, which are putting the project at risk.

The Thailand Elite Card, a.k.a. the hub of advertising debt for Southeast Asia.

[sriracha john]

Thailand Privilege Card Co’s board will convene today to tackle Thailand Elite Card’s massive debt problems, which are putting the project at risk.

doesn't exactly give people confidence to invest in one for visa purposes. The whole project is on the rocks and the teetering ship is breaking up.

[chingy_]

they should sell it to all the member on this site for quarter of a price maybe then they will make some money in return.

[Axel]

Personally, I'd rather carry an Amex black card.

Careful with your Amex-card. The number looks not real and the picture seems to be older than 6 months. Some merchants might not accept it

[toopeekaa 1]

The Thailand Elite Card, a.k.a. the hub of advertising debt for Southeast Asia. 

Trivia question for Ovenman :

Who was it that always said "hubba, hubba hubba"

Maybe not as quite as often as The O'man, but close

[toopeekaa 1]

Personally, I'd rather carry an Amex black card.

Careful with your Amex-card. The number looks not real and the picture seems to be older than 6 months. Some merchants might not accept it

Plus the nose has a wrinkled crease in it and there is writing on the back....... and if it is a 1996 series forget it

[astral]

Did anyone every buy property under this scheme?

I wonder how secure it is now???????

[Crushdepth]

The agenda will be how the company will pay a Bt149-million debt to Cable News Network (CNN)

I bet that was a *nice* little earner, kickback-wise

The market has voted: This is a crap deal (financial problems aside). If they gave you no-hassles residency and the right to *own* a single residential property as part of the deal (ie. a bit of security and peace of mind) they just might be able to sell some of the bloody things.

And if the letter of the law is a problem, maybe they should have amended it before launching such a hair-brained and blatant grab for cash.

[Phil Conners]

... and some sort of UN guarantee that the next government isn't gonna nullify the deal.

[ovenman]

Maybe not as quite as often as The O'man,  but close

The 'O' is looking to have used the word hub more frequently than key Thai government officials but fears that he still has much catching up to do.

[Dakhar]

The agenda will be how the company will pay a Bt149-million debt to Cable News Network (CNN)

I bet that was a *nice* little earner, kickback-wise

The market has voted: This is a crap deal (financial problems aside). If they gave you no-hassles residency and the right to *own* a single residential property as part of the deal (ie. a bit of security and peace of mind) they just might be able to sell some of the bloody things.

And if the letter of the law is a problem, maybe they should have amended it before launching such a hair-brained and blatant grab for cash.

You got that right. I am plan on moving to Thailand, in a couple of years. I have been watching this "elite card" joke from afar. If land, smooth immigration was part of the deal, and a garauntee of no wiggle room from the deal....I would have paid the 25K, get it behind me and move on.

But without those key items forget it. The WORLD market has spoken... but is Thaksin listening?

[dr_Pat_Pong]

Fearless Leader isn't much of a listener.

[Indo-Siam]

660 cards my ass - I understand that the total number of cards sold to customers for 1,000,000 baht is fewer than 50. All the rest were given out on a complimentary basis.

I held one in my hands for thefirst time earlier this month - one of the 43-odd that havev ben legitimately purchased. it appeared to be MADE of gold - it seemed heavy enough.

This was truly an idiotic program of epic scale.

Indo

[Axel]

Action comes to high gear.

I understand three committees will be set up to investigate and find out who authorised the purchase of commercial slots on CNN etc. No payment until the case is finalized.

Expect results within 2-3 months. LOL

[penelope]

This was truly an idiotic program of epic scale.

Agreed.

I wonder how many people involved with the schemes inception/development thought along those same lines but were too "kraeng jai" as subordinates to want to confront their superiors.

[Phil Conners]

I wonder when CNN will start showing ads worrldwide with "Thailand, pay your bill!"

[ovenman]

This was truly an idiotic program of epic scale.

I find it incredible that the powers-that-be still don't seem to be clear on this underlying idiocy. It seems like every few weeks there is yet another story in the local press regarding how the Elite Card scheme is going to be revived real soon now.

[sriracha john]

and in doing so, pumping more and more money down the drain. It's grown into such an albatross that the powers are afraid to face reality and close it down... better to not face reality than lose face.

A SUBJECT THE GOVERNMENT IS NOT FACING THAT IS EVEN WORSE..... is the bird flu issue (watching news now about yet another death).... at least the elite card fiasco involves money only... but by lying about and denying the bird flu issue is costing lives!

[p_brownstone]

It's going to be interesting to see how the Government gets out of this mess.

In a recent interview the MD of the Card Company claimed that there was no problem because the Company had "strong cash flow" - which is obvious nonesense; the only cash coming in is the one time payment for the Card - plus any income from Investment of that money of course. All other cash is flowing outwards, whether it's paying for the purchase of the Mercedes to collect Cardholders at the Airport - plus running costs, reimbursing Thai airlines for "free" tickets given to Cardholders, paying the fees which Golf Courses, Spas etc. will charge to the Card Company for allowing Cardholders to receive free use of their facilities etc. etc..

Add the daily running costs of the Card Company, the roadshows to promote the Card and appoint "Representatives" - still apparently ongoing, now a huge advertising bill.

It cannot be long before the only benefit Cardholders receive is the Visa deal - all other service providers will jump ship as soon as payment from the Card Company ceases.

[stroll]

And with elections not far away, the visa deal doesn't seem to be all that secure neither.

[Axel]

While discussing this thing last Nov/Dec. it seemed most members on TV came to the conclusion that the system will not work. Snowball, I think, was mentioned.

Now, does this mean the members here can actually think or did they kill the thing?

For T. it should be easy, he can say he tried his best, but if the people don't want it, not his mistake.

Legally? An expert should comment, but I said it before, the membership in the club is for life time. So once the club's life is over....

@ Stroll, you might be right, T's figures are down to 48 % or thereabout.

I don't think another party would change the notifiction of exemption to the immigration act B.e. 2522. To enter Thailand under this notifiction-rule the person must be a member of the Club. Once the club is no more the rule becomes useless.

On thing for sure, the moment will come, when somebody has to say, all the income does not cover the costs, that would be the moment to go into liquidation.

[Insight]

It was a good idea at the time, it really was. Even hostess #65 at Poseidon agreed as she was getting the government officals their 4th bottle of Johnny Walker Black Label in for the evening...

[Darth Bangkok]

660 cards my ass - I understand that the total number of cards sold to customers for 1,000,000 baht is fewer than 50. All the rest were given out on a complimentary basis.

I held one in my hands for thefirst time earlier this month - one of the 43-odd that havev ben legitimately purchased. it appeared to be MADE of gold - it seemed heavy enough.

This was truly an idiotic program of epic scale.

Indo

wow! a negative comment from Indo-Siam!!

so CNN and all those other companies that placed the ads are not getting paid until the charade of "i didn't know what was going on, I was at a naughty massage" is over?

so services rendered, unpaid bills.

nice way to advertise that Thailand is a good place for foreigners to do business.

[Axel]

I doubt very much that CNN contracted directly with the Eleite company.

Usually, such kind of contracts are made with a bona fide agent in between, who will pay CNN but might have some problems to get the money back from TPC.

The agent, I believe, is a Thai company.

This would as well explain why CNN and the others kep silent.

[Nemesis]

Fearless Leader will just run a National Lottery to get it out of trouble.

Now, now Dr. Ping Pong, let's not have any anti-Thai sentiment. Particularly against the Fearless Leader. You've been warned.

[Nemesis]

Fearless Leader isn't much of a listener.

My, my, twice within the same thread.

[nogutsnoapplepie]

Tremendous eater though.