Will Your Business Still Be Open Next Year

[livinthailandos]

Didn't seem to find anyone posting a topic on this so I thought i would just ask, as i'm sure many are aware that koh samui is mostly a tourist get away, and pretty much the whole island survives realistically only on tourists coming and going, yes I am aware thais work here and contribute to but there purchasing power is no where near the amount a foreigner comes in and spends I could be wrong just my opinion though. Anyways due to

1. Political Instability which most likely won't be resolved anytime in the near future

2. Global Recession

I suspect we should see some businesses on the island go out of business, note I understand people will still travel, and so will the rich but I don't think the majority of tourists coming to samui are rich, anyways if you run a business

1. Will you make it through next year if declines in tourists keep happening

2. Do you plan on laying of employee's

3. Do you have enough money in reserve to get by

Look forward to all your opinions

[PoorSucker]

1. Yes

2. No

3. Yes

[Samuian]

Copy and support post #2!

[BusyBee123]

oh gosh where to start, seems you are asking a lot of rhetorical questions, could i ask why the interest?

[Ocean11]

1. Yes, we have a lot of locals (both expats and Thais) and a good number of repeat guests

2. Nope, but will teach them to save/watch expenses (switch off lights/fans etc. when no need to use), reduce orders etc.

3. Never enough, but will get by.

[unomi]

I think you will be hard pressed to find anyone honest and brave enough to admit their worries and problems.

I also think that the decrease in tourists has not yet been severe or long enough to seriously affect those that were not already struggling.

Its hard to predict anything, especially the future.

But most people are savvy enough to know that you can get more investment into or price for a business that atleast appears successful.

I do not wish to imply that this relates in anyway to the above posters.

[BusyBee123]

some business owners will be glad to see the back of the peripheral bars and certainly the bars only open for the bar owner to indulge his alcoholism, possibly a good time for a clear out, plenty of opportunites for the smart bar owner here i think

[MSingh]

1. Yes, we have a lot of locals (both expats and Thais) and a good number of repeat guests

2. Nope, but will teach them to save/watch expenses (switch off lights/fans etc. when no need to use), reduce orders etc.

3. Never enough, but will get by.

Good luck..

[loiner100]

Didn't seem to find anyone posting a topic on this so I thought i would just ask, as i'm sure many are aware that koh samui is mostly a tourist get away, and pretty much the whole island survives realistically only on tourists coming and going, yes I am aware thais work here and contribute to but there purchasing power is no where near the amount a foreigner comes in and spends I could be wrong just my opinion though. Anyways due to

1. Political Instability which most likely won't be resolved anytime in the near future

2. Global Recession

I suspect we should see some businesses on the island go out of business, note I understand people will still travel, and so will the rich but I don't think the majority of tourists coming to samui are rich, anyways if you run a business

1. Will you make it through next year if declines in tourists keep happening

2. Do you plan on laying of employee's

3. Do you have enough money in reserve to get by

Look forward to all your opinions

Laying of employees sounds to be a bonus in any business if you can get away with it and your wife doesn't find out

[angiud]

1. Yes

2. No

3. Yes

Same same

[longtom]

Our business is relying on tourist for 60-70 %, so:

1. Very much hope so

2. Trying not to but no guarantee when tourist numbers go down more than 50 %

3. Enough when you ask me, my gf - though not a big spender - might think otherwise

[tommyj4]

Would anybody honestly open up & say I am not gonna make it through the next year?????come on wheres your common sense....businesses start up/change hands/close down on a monthly basis for many reasons....but nobody ever says its because they are skint or not doing well....

[SamuiMole]

some business owners will be glad to see the back of the peripheral bars and certainly the bars only open for the bar owner to indulge his alcoholism, possibly a good time for a clear out, plenty of opportunites for the smart bar owner here i think

Well said ! A few less beer hovels owned by tourist-visa yielding alco's whose main income revolves around the daily rotation of likeminded sangsom-soaked bar owners may well be a much needed bonus for Samui from the impending recession.

[samui04]

1. Yes, we have a lot of locals (both expats and Thais) and a good number of repeat guests

2. Nope, but will teach them to save/watch expenses (switch off lights/fans etc. when no need to use), reduce orders etc.

3. Never enough, but will get by.

Nobody mentioned the usual december increase of prices of 15/20%....

Some resorts already have moved the first part of december in high season (it was rainy season before...) .

Anyway the web site of Bkk Airways has only empty flight until 25 dec...

Maybe the positive side of the tourist crash will be the stop of building concrete everywhere.

The government should ban any new costruction for at least 5 years, there are enough new empty shop/bar waiting.

[thailand_tom]

just watch the classifieds on this website, from 700 properties to over 1300, less then 6 months look at the business for sale reducing prices, look at airline tickets, double from a year and a half ago, baht 34.50 to usd, euro 44, pound 58, my guess, these ads with relocating or just had a baby, are more like, if i don't sell in the next month or 2 i'll lose everything, if your off 60%-70% now, wait till 2009, when the poop really hits the fan, lost jobs in usa 750,000 so far, will be 1 million by jan 1st, and expected even worse in 2009 -2011, we just contracted this quarter, signal of reccession, ( we have been in one for the last 6 months i think ) i had a business for 19 years here in the usa, good luck, i know its tough owning a business, just to meet payroll was a bear, sometimes.

[Eli27]

Laying of employees ensures a piece of mind that customers are getting value for money... this will continue....

[thaierless]

Copy and support post #2!

Ditto and Ditto...and, actually we are expanding our office and (almost desperately) looking for additional staff! ...but its pretty clear that businesses are suffering here already. e.g. have a look at Big-C, outside all the shops between Starbucks and the little massage place in the back are now out of business...inside, the "Pizza Corner/Coffee World"....and other shops on that ground floor...now defunct. That's just at Big-C...pretty sure things will get worse, before better. But for the island, that is good, it needs a breath from all the expansion and, hopefully, the squeez will continue to get rid of lots of the undesirables here.

[highdiver]

Copy and support post #2!

Ditto and Ditto...and, actually we are expanding our office and (almost desperately) looking for additional staff! ...but its pretty clear that businesses are suffering here already. e.g. have a look at Big-C, outside all the shops between Starbucks and the little massage place in the back are now out of business...inside, the "Pizza Corner/Coffee World"....and other shops on that ground floor...now defunct. That's just at Big-C...pretty sure things will get worse, before better. But for the island, that is good, it needs a breath from all the expansion and, hopefully, the squeez will continue to get rid of lots of the undesirables here.

i cant belive it....

i totally agree with you...

[tommyj4]

Its been going on for a few years...just look at the real estate agents...SEC used to have a company profile of about 70....now its down to about 30....proof if ever there was.

[Mark Wolfe]

It seems clear to me that this question leaves much to be desired without also including, "and what is your business?"

some business owners will be glad to see the back of the peripheral bars and certainly the bars only open for the bar owner to indulge his alcoholism, possibly a good time for a clear out, plenty of opportunities for the smart bar owner here i think

Peripheral bars? In Lamai, there must be 60 bars or more. What bars are you referring to that are, well, I will put words in your mouth here: "mainstream bars"?

I don't think that Outback cares one whit about the girlie bars everywhere. And Bauhaus recently closed 75 percent of their area (it stands abandoned as I write) and I would have considered that place almost an institution here.

Opportunities for the "smart bar owner"? Who are they? It seems to me that almost anyone who buys into a girlie bar, or refurbishes one, is borderline insane. Unless, of course, the aim is to break even (ie, enable one to stay in Thailand living a static life). Now I am aware that some bars make money, but I think if the owners of most of the bars here fessed up, the story would be one of barely breaking even or losing money (and the resale proposition including the sword of Damocles hanging over your head in the guise of the notorious key money).

Someone recently confirmed what I always suspected regarding bar ownership, peripheral or not, and that is, "If you don't have a lot of friends here [who will frequent your bar] you shouldn't open a bar in the first place."

Also, I have a university degree in business management and ran several eateries, once upon a time, and I wouldn't want to have a bar here. And I consider myself to be "smart" (some may debate that...).

Certainly I understand the, "I don't want to go back to [insert home country] so I have a bar since I can't work my usual job here [or don't have any real marketable skills that are needed in Thailand/Samui] and just breaking even keeps me here, so it's acceptable." But from what I have seen over the last almost three years, it's a less than salubrious way to earn a paltry existence.

And I can only think of one bar in Lamai where the foreign "owner" is a class AAA prick, who indulges in delusions of grandeur and is grounded in the reality of being sodden every night. Although many of the "group of friends" bars are very clique-ish, you can usually pull up a chair and have a civil evening.

It would be useful for those who have answered before to re-post telling us what business we are talking about. The impact of the possible downturn in tourist numbers is different for different businesses.

[samui04]

Peripheral bars? In Lamai, there must be 60 bars or more. What bars are you referring to that are, well, I will put words in your mouth here: "mainstream bars"?

I don't think that Outback cares one whit about the girlie bars everywhere. And Bauhaus recently closed 75 percent of their area (it stands abandoned as I write) and I would have considered that place almost an institution here.

75% per cent? I thought it was the smallest disco of thailand...

well, in the resorts behind it will be possible to sleep....I've just booked one at the opposite side of Lamai, just in case...

60 bars...uhm...that will explain the noise everywhere in lamai, particularly if they try to fight with volume .

[pothai]

Looking at "Bars for sale" on baht sold etc will show clearly the mathematics do not work. Key money 2 years = 250,000 baht, rent per month 10,000....plus other outgoings equates to well over 30,000 baht a month running costs, this is being conservative also. To break even a PROFIT of at least 1,000 a day is needed 365 days a year. Take into account holidays, elections etc that then increases. Factor in low season and that almost doubles. Thats a lot of bottles of Singha to sell EVERYDAY. If we take into account living costs then it is obvious that bars DO NOT make money. Anyone that owns a bar and states they are making money is living in a world of their own.

[samuislander]

Yes

NO!

Yes

Solid, Committed and Credible businesses will survive.

[pothai]

Yes

NO!

Yes

Solid, Committed and Credible businesses will survive.

Which are???

Apart from bars, salons, massage shops and real estate agents, which businesses are owned by non Thais?

[Ocean11]

Yes

NO!

Yes

Solid, Committed and Credible businesses will survive.

Which are???

Apart from bars, salons, massage shops and real estate agents, which businesses are owned by non Thais?

Restaurants

[thaierless]

Copy and support post #2!

Ditto and Ditto...and, actually we are expanding our office and (almost desperately) looking for additional staff! ...but its pretty clear that businesses are suffering here already. e.g. have a look at Big-C, outside all the shops between Starbucks and the little massage place in the back are now out of business...inside, the "Pizza Corner/Coffee World"....and other shops on that ground floor...now defunct. That's just at Big-C...pretty sure things will get worse, before better. But for the island, that is good, it needs a breath from all the expansion and, hopefully, the squeez will continue to get rid of lots of the undesirables here.

i cant belive it....

i totally agree with you...

see there, great minds do think alike...just not always

[pothai]

Yes

NO!

Yes

Solid, Committed and Credible businesses will survive.

Which are???

Apart from bars, salons, massage shops and real estate agents, which businesses are owned by non Thais?

Restaurants

Same Same bar, just lot more key money to pay....

[Ocean11]

Yes

NO!

Yes

Solid, Committed and Credible businesses will survive.

Which are???

Apart from bars, salons, massage shops and real estate agents, which businesses are owned by non Thais?

Restaurants

Same Same bar, just lot more key money to pay....

Expert hmmm ?

[pothai]

If a business is that good, why are so many for sell.....???...not expert, even a 10 year old would know that

[Mark Wolfe]

As far a what businesses are "owned" by foreigners, this is the information I asked for earlier.

Don't forget that bars also make money on prostitution. Girls taken out are done so after paying a "bar fine," or so I am told...

By the way, the bar fine in Lamai is 300 baht (200 baht some places). If you are in the Combat Zone in Taipei, however, you'll be paying the bar the equivalent of 7,000 baht bar fine!