Opening A Guesthouse

[slashnunn]

Hello-

I am considering opening a guesthouse in Thailand and have a couple of questions:

1) If the guesthouse has a foreign manager (with work permit), what types of labor is he allowed/prohibited to participate in?

2) My business partner and I are using the Thai/US Amity treaty. Is there a cost difference between forming it as a LLC vs. a partnership? Would either one be more beneficial?

Thanks a ton!

Dave

[ericthai]

Hey Dave,

I did the US amity treaty and the cost is more than opening a Thai partnership company. I cant recall the difference in cost I think about $800 or $1000 USD more. The benefits are you own the company 100% and no need for a thai partner that would have majority ownership. There are restrictions on what types of business you can establish under the treaty so you need to check if you can do this type of business. I believe your best bet is to speak to a lawyer to weigh the pro's and con's on this.

Good luck!!

[alexanderthai]

Well, I would say to you that in Thailand the court uses Thai treaty as a first language for business here. US treaty will be second major effective. It's Thai laws saying about.

[Nio]

Do you have a business plan or have researched this idea?

Tourism is crashing, many places have gone out of business

If you read the current news, the reds vs the rest of Thailand, we are in for some rough waters that will not be condusive to tourism in the very near future

Of the top 10 vacations destinations Thailand was listed in the top ten, the con? Unstable government meaning tourism is drastically down then there are internal issues in this country. Closing the airport never helps either.

Better do your homework and research with a bonafide business plan

It seems to be services of the guest house, hotel, B&B are taking a bad hit in 2009

One wrong turn by the govt, tourists disappear and your business is gone

Now is not the time to be investing in tourist related businesses

[simon43]

I cannot agree with Nio's comments. If you do your research carefully, then you can identify sectors of the tourist accomodation market where there are very good opportunities to make money. Opening a guesthouse in Patong or Pattaya is probably not one of them

If I had the money to open a second guesthouse, then I would do that tomorrow. What sector? Not saying!, (and not within the sector of my current guesthouse).

Do your research, ignore those who speak of doom and gloom, and you will find areas with very good business potential.

Simon

[lime123]

I have a guesthouse in Thailand , may be can help you please PM

[beddhist]

I would like and answer to question 1, too. Can anybody please help?