Thailand Elite Card Issuer On Auction

[george]

Elite Card issuer on auction

BANGKOK: -- The Council of the Economic Ministers today approved the term of reference to put Thailand Privilege Card on auction, the move that will totally kill the government's participation in the Elite Card project started in 2003.

Companies having been in the tourism industry for 3-5 years are allowed to submit proposals.

The government's involvement will be limited only to the issuance of visas to new members.

Meanwhile, all the privileges granted to existing members will be maintained.

The economic ministers also cautioned that the member selection process must be thorough to ensure that the national security is not compromised.

-- The Nation 2009-12-16

[newsfooter][/newsfooter]

[wpcoe]

Companies having been in the tourism industry for 3-5 years are allowed to submit proposals.

Interesting restrictions. I can understand a minimum # of years in the tourism industry -- to prevent someone with no experience from taking over, like a politician's wife, for example. But, why set a maximum # of years? A company with six years is automatically excluded?

[Changian]

^ I think you can put that down to The Nation's crap reporting - they are probably missing a couple of words such as 'a minimum of'

But i'd be surprised if anyone bought it as it's worthless without government backing and with total losses of1.4 Billion Baht it is hardly a money spinner.

[alyx]

Hey George

Would you be kind enough to provide ubs with a link as I have not been able to read anything regarding the matter on either English language newspapers

Thanks

[A_Traveller]

^

Try, surprisingly... Nation -> Business. It's presently the headline item on that page, alternatively try scrolling down to the Business Headlines on the main Nation page.

Regards

Edited December 16, 2009 by A_Traveller

[alyx]

Thanks

[ukrules]

Why can't I quote part of the the main article anymore ? The button has disappeared

Quote : "The economic ministers also cautioned that the member selection process must be thorough to ensure that the national security is not compromised."

How could national security possibly be compromised with this scheme, are they crazy ?

[Maestro]

...Would you be kind enough to provide ubs with a link as I have not been able to read anything regarding the matter on either English language newspapers...

Link to the article in the OP:

http://www.nationmultimedia.com/2009/12/16...ss_30118642.php

--

Maestro

[LivinLOS]

Why can't I quote part of the the main article anymore ? The button has disappeared

Quote : "The economic ministers also cautioned that the member selection process must be thorough to ensure that the national security is not compromised."

How could national security possibly be compromised with this scheme, are they crazy ?

Giving out 5 year visas..

Clearly a paranoid xenophobic system sees only risk when it comes to allowing some high net worth people to stay and spend here !!

[junglist]

Jazz man you nailed this one.

[A_Traveller]

The really hysterical thing is the anticipated auction range which I'm advised is in the 2 - 3 billion baht range [60 to 90 million USD], oh, and oh yes the successful bidder is supposed to take on the existing debts [1.3+ billion baht] and maintain the existing staff [100+]. Good game.. good game.

Given that I reviewed this project as a potential 'sale' some time ago, I can't [expect for back door dealings] see this as a realistic block price.

Regards

Edited December 17, 2009 by A_Traveller

[Netfan]

Why can't I quote part of the the main article anymore ? The button has disappeared

Quote : "The economic ministers also cautioned that the member selection process must be thorough to ensure that the national security is not compromised."

How could national security possibly be compromised with this scheme, are they crazy ?

It could be that one Takki Shenegra would be interested, since it was his brilliant idea to begin with. Why wouldn't he want to own it privately? It's gonna make billions!

[SomdetK]

Thailand Elite Card: Pricey Monument to Thaksin’s Ego-centrism

The eventuality of the Thailand Elite card project has finally arrived. The government will organize an auction to allow bidding for the project, liberating it from the control of a subsidiary under the Tourism Authority of Thailand. Everyone saw this coming except for Thaksin who himself is largely responsible for it.

The winner of the bid will buy all shares from Thailand Elite and takes care of the existing membership of 2,750 members throughout the contract period. The winner will also gain control over both assets and debts of Thailand Elite. The hitch is the winner would also be made liable for any legal dispute or bindings that may arise.

The bidding plan shows the government is trying to throw away their due responsibility in compensating the losses or inconvenience suffered by existing members. At present, there is not much left for the prospective winner anyway – 300 million baht in capital and 100 million baht in debts. The prospect of Thailand Elite is not promising and it is likely to face a bigger deficit and possibility of unforeseen damage in the future.

It is another lesson for Thais to learn. This project, among others, was conceived during the less-than-perfect administration of Thaksin Shinawatra without a real possibility of becoming a profitable operation. It definitely was not created to benefit the majority of the country. It is purely created to satisfy egos of those who had political power in their hands at that time. They blatantly tried to sell this pipe-dream and purported their false image of visionary administrators to the public.

In 2003 the Thaksin government wasted one billion baht of taxpayers’ money in a bid to create value for the Elite cards and attract high-end consumers. They boasted about an ambition to sell one million Elite cards to foreigners without a thought of asking the Thai people about the appropriateness of conditions imposed and benefits offered by the Elite card project.

The privileges that come with the card are indeed considered as privileges by any standard including free access to golf courses, spas, hospitals and a special immigration channel. The most startling privilege of all is the right to conduct a business transaction in conjunction with the Thai government or a private Thai company and to buy up to 16,000 square meters of Thai land.

Talking about paving the way for nominees to be set up by foreigners to take control over Thai soil. Fortunately, this project is merely a hype.

It was marred with problems from the beginning. During Thaksin government, less than 1,000 Elite cards were sold. Sale agents of the card during the early days of this project were those who had connections with key players in the Thaksin government.

Disappointing sales led to a less ambitious goal. The sale goal was embarrassingly adjusted way downward to only 100,000. The disappointment didn’t stop there when the sales goal was further cut tenfold for the second time to only 10,000 cards.

Despite lowering the card price, the project failed to generate any real interest. Millions of baht were wasted on advertising for this project. Another moment of shame occurred when a news broke that Thailand owed CNN 140 million baht in advertising fees for the Thailand Elite project.

As of this very moment, the modest goal of selling 10,000 Elite cards remains unfulfilled. Thaksin is the man who should be held most responsible for this fiasco. He's fled Thailand, leaving the Thai public to pay the price of his ego-centrism.

How could a project that was doomed from the beginning make a turnaround and become a profitable operation all of a sudden?

It was strange from the beginning. Instead of playing the role of a service provider and collaborate with operators of golf courses and hotels as a government should, his government tried to become an investor by building a golf course on a state-own piece of land. It quickly drove the already shaky project to the brink of collapse.

The decision by the current administration to exclude itself from a mess of a project is definitely a right move.

They should do us all a big favor and inform the public of how the Thaksin government wasted their hard-earned tax money on this project, which served nothing but to satisfy his ego and to make it public that he is not as good or intelligent as he purports himself to be. He definitely doesn’t contribute anything worthy to Thailand as he has insisted all along in his campaign to return to power.

There are ample examples of his failures. While he tried to establish himself reputation through his lofty projects, he erected monuments of burdens and damages for Thailand to bear in his wake.

Taken from Thai newspaper:

Opinion Page

Naew Na Newspaper

December 17, 2009

http://www.thailandoutlook.tv/tan/ViewData...?DataID=1022486

[BangkokJazz]

Thai Elite - Thanks so much to Takki Shinigra, for this wonderful example of governance run amok.

[scorecard]

Thailand Elite Card: Pricey Monument to Thaksin’s Ego-centrism

The eventuality of the Thailand Elite card project has finally arrived. The government will organize an auction to allow bidding for the project, liberating it from the control of a subsidiary under the Tourism Authority of Thailand. Everyone saw this coming except for Thaksin who himself is largely responsible for it.

The winner of the bid will buy all shares from Thailand Elite and takes care of the existing membership of 2,750 members throughout the contract period. The winner will also gain control over both assets and debts of Thailand Elite. The hitch is the winner would also be made liable for any legal dispute or bindings that may arise.

The bidding plan shows the government is trying to throw away their due responsibility in compensating the losses or inconvenience suffered by existing members. At present, there is not much left for the prospective winner anyway – 300 million baht in capital and 100 million baht in debts. The prospect of Thailand Elite is not promising and it is likely to face a bigger deficit and possibility of unforeseen damage in the future.

It is another lesson for Thais to learn. This project, among others, was conceived during the less-than-perfect administration of Thaksin Shinawatra without a real possibility of becoming a profitable operation. It definitely was not created to benefit the majority of the country. It is purely created to satisfy egos of those who had political power in their hands at that time. They blatantly tried to sell this pipe-dream and purported their false image of visionary administrators to the public.

In 2003 the Thaksin government wasted one billion baht of taxpayers’ money in a bid to create value for the Elite cards and attract high-end consumers. They boasted about an ambition to sell one million Elite cards to foreigners without a thought of asking the Thai people about the appropriateness of conditions imposed and benefits offered by the Elite card project.

The privileges that come with the card are indeed considered as privileges by any standard including free access to golf courses, spas, hospitals and a special immigration channel. The most startling privilege of all is the right to conduct a business transaction in conjunction with the Thai government or a private Thai company and to buy up to 16,000 square meters of Thai land.

Talking about paving the way for nominees to be set up by foreigners to take control over Thai soil. Fortunately, this project is merely a hype.

It was marred with problems from the beginning. During Thaksin government, less than 1,000 Elite cards were sold. Sale agents of the card during the early days of this project were those who had connections with key players in the Thaksin government.

Disappointing sales led to a less ambitious goal. The sale goal was embarrassingly adjusted way downward to only 100,000. The disappointment didn’t stop there when the sales goal was further cut tenfold for the second time to only 10,000 cards.

Despite lowering the card price, the project failed to generate any real interest. Millions of baht were wasted on advertising for this project. Another moment of shame occurred when a news broke that Thailand owed CNN 140 million baht in advertising fees for the Thailand Elite project.

As of this very moment, the modest goal of selling 10,000 Elite cards remains unfulfilled. Thaksin is the man who should be held most responsible for this fiasco. He's fled Thailand, leaving the Thai public to pay the price of his ego-centrism.

How could a project that was doomed from the beginning make a turnaround and become a profitable operation all of a sudden?

It was strange from the beginning. Instead of playing the role of a service provider and collaborate with operators of golf courses and hotels as a government should, his government tried to become an investor by building a golf course on a state-own piece of land. It quickly drove the already shaky project to the brink of collapse.

The decision by the current administration to exclude itself from a mess of a project is definitely a right move.

They should do us all a big favor and inform the public of how the Thaksin government wasted their hard-earned tax money on this project, which served nothing but to satisfy his ego and to make it public that he is not as good or intelligent as he purports himself to be. He definitely doesn’t contribute anything worthy to Thailand as he has insisted all along in his campaign to return to power.

There are ample examples of his failures. While he tried to establish himself reputation through his lofty projects, he erected monuments of burdens and damages for Thailand to bear in his wake.

Taken from Thai newspaper:

Opinion Page

Naew Na Newspaper

December 17, 2009

http://www.thailandoutlook.tv/tan/ViewData...?DataID=1022486

Quote from above:

"....his government tried to become an investor by building a golf course on a state-own piece of land. It quickly drove the already shaky project to the brink of collapse."

The comment in itself is of course logical and a correct analysis.

However there's another point to make. This was in fact the core of the 'business model' for T and his cronies - create projects which of course need funds (taxpayers funds), and you now have funds you can milk.

I've always wondered whether the new airport was part of the 'business model'? Why would anybody go ahead and build an airport to a 35 year old design with no update.

Within that 35 years many international airports were build across the world providing lots of up-to-date design and functionality data to draw from to ensure the final design is the best possible at the date of building.

[Oberkommando]

The Elite Card wasn't Thaksin's fault. He was just exhibiting a trait common in most, if not all Thais, in that their opinion of their country and what it offers is far over-valued and beyond the reality.

Of course if you can trouser a few billion along the way then good luck to you, just spare a thought for the poor mugs that bought it, by falling into the same trap that the Thais are brainwashed into believing every day of every year. They should have known better.

Caveat emptor, a fool and their money, etc...

It was badly run, poorly marketed and doomed from the get go, but the real reason why it failed is as it stands Thailand simply isn't worth the money they were asking for it and punters voted with their feet and didn't buy it.

[ThaksinKharma]

Thailand Elite En Route to Acquisition

UPDATE : 28 June 2010

TAN Network

Thailand Privilege Card, operator of Thailand Elite membership card, is undertaking the valuation of its assets in preparation for the future sale of the company.

Methavee Tunwattanapong, director and acting president of Thailand Privilege Card, or TPC, the company operating the Thailand Elite Card venture, said the company has hired KTB Advisory to evaluate all of its assets to determine the selling price of the business.

She expects the valuation to be completed by July 4.

Methavee added that the price will later be publicized so that interested buyers can submit their applications for an auction in September.

The top executive noted that in the meantime, the Tourism Authority of Thailand, or TAT, which holds a major stake in TPC, will be considering the possibility of stepping forward to take control of its subsidiary if no one wants to buy it.

In that case, the TAT will need to decide which of its departments TPC will be incorporated into, or whether a new division should be created.

Meanwhile, the TPC board resolved to appoint a committee to monitor the firm's operations, as requested by the Finance Ministry. The panel includes Dusadee Sinjermsiri, Wilaiwan Tawichsri and Police Colonel Worapol Indhase, all of whom are TPC board members.

Recently, TPC has made some adjustments to its management by having staff in its defunct departments oversee the internal audit and by separating the customer relations unit from the booking service unit in order to reduce errors at work and to optimize the audit function.

http://www.thailandoutlook.tv/tan/ViewData.aspx?DataID=1031367

[midas]

Thailand Elite En Route to Acquisition

UPDATE : 28 June 2010

TAN Network

Thailand Privilege Card, operator of Thailand Elite membership card, is undertaking the valuation of its assets in preparation for the future sale of the company.

Methavee Tunwattanapong, director and acting president of Thailand Privilege Card, or TPC, the company operating the Thailand Elite Card venture, said the company has hired KTB Advisory to evaluate all of its assets to determine the selling price of the business.

She expects the valuation to be completed by July 4.

Methavee added that the price will later be publicized so that interested buyers can submit their applications for an auction in September.

The top executive noted that in the meantime, the Tourism Authority of Thailand, or TAT, which holds a major stake in TPC, will be considering the possibility of stepping forward to take control of its subsidiary if no one wants to buy it.

In that case, the TAT will need to decide which of its departments TPC will be incorporated into, or whether a new division should be created.

Meanwhile, the TPC board resolved to appoint a committee to monitor the firm's operations, as requested by the Finance Ministry. The panel includes Dusadee Sinjermsiri, Wilaiwan Tawichsri and Police Colonel Worapol Indhase, all of whom are TPC board members.

Recently, TPC has made some adjustments to its management by having staff in its defunct departments oversee the internal audit and by separating the customer relations unit from the booking service unit in order to reduce errors at work and to optimize the audit function.

http://www.thailandoutlook.tv/tan/ViewData.aspx?DataID=1031367

i am just curious .........is this company

able to show any ACTUAL income at the moment and I dont mean

wishful thinking projected income based on assuming there will be

x number of new members willing to pay 1.5 million baht each ?

[bkkjames]

Not sure why it takes so long to determine the value is in fact 0?

[ThaksinKharma]

The Elite Card wasn't Thaksin's fault.

In reality, it was.

December 31, 2003

The Nation

THAILAND ELITE CARDS: Price for privileges will double in 2004

The Thailand Elite card, the brainchild of Prime Minister Thaksin Shinawatra

http://www.nationmultimedia.com/home/2003/12/31/business/THAILAND-ELITE-CARDS-Price-for-privileges-will-dou-91381.html

btw, still waiting for that One Trillion Baht of his brainchild idea to materialize:

October 20, 2003

The Nation

Elite Cards launch tonight

The TAT hopes to earn Bt100 billion from sales in the first year, and increase this to Bt1 trillion within five years.

http://www.nationmultimedia.com/home/2003/10/20/The%20Region/Elite-Cards-launch-tonight-87557.html

Edited June 28, 2010 by ThaksinKharma

[Ricardo]

...

Methavee Tunwattanapong, director and acting president of Thailand Privilege Card, or TPC, the company operating the Thailand Elite Card venture, said the company has hired KTB Advisory to evaluate all of its assets to determine the selling price of the business.

She expects the valuation to be completed by July 4.

Methavee added that the price will later be publicized so that interested buyers can submit their applications for an auction in September.

...

So they're busy determining a 'selling price', after which there will be 'applications for an auction', to see who ends up with this fine business ?

Would it not have been easier just to audit the books, publish the latest set of accounts, and let the potential-buyers put in their bids ?

Something is only worth, whatever someone else will offer for it, after all.

Perhaps the TAT wishes to avoid unnecessary embarrassment, by having someone bid too high a price, and their actually receiving more than it's worth, I mean that would simply be unsporting and against all Thai tradition, unless the buyer is foreign ?

It certainly can't be, that the TAT's financial controls & Thai accountancy-standards are so weak, that nobody has any idea whether their investment over several years is still really worth anything at all, or not ?

[Thai at Heart]

...

Methavee Tunwattanapong, director and acting president of Thailand Privilege Card, or TPC, the company operating the Thailand Elite Card venture, said the company has hired KTB Advisory to evaluate all of its assets to determine the selling price of the business.

She expects the valuation to be completed by July 4.

Methavee added that the price will later be publicized so that interested buyers can submit their applications for an auction in September.

...

So they're busy determining a 'selling price', after which there will be 'applications for an auction', to see who ends up with this fine business ?

Would it not have been easier just to audit the books, publish the latest set of accounts, and let the potential-buyers put in their bids ?

Something is only worth, whatever someone else will offer for it, after all.

Perhaps the TAT wishes to avoid unnecessary embarrassment, by having someone bid too high a price, and their actually receiving more than it's worth, I mean that would simply be unsporting and against all Thai tradition, unless the buyer is foreign ?

It certainly can't be, that the TAT's financial controls & Thai accountancy-standards are so weak, that nobody has any idea whether their investment over several years is still really worth anything at all, or not ?

I wonder if Pojamarn or her progeny have any interest as private investors or have they learnt their lesson about government auctions?

[ThaksinKharma]

I wonder if Pojamarn or her progeny have any interest as private investors or have they learnt their lesson about government auctions?

I think they are more concerned about explaining away tomorrow about their 11.927 Billion Baht in money transactions for their Red Shirt investments rather then seeking new ventures.

[Thai at Heart]

I wonder if Pojamarn or her progeny have any interest as private investors or have they learnt their lesson about government auctions?

I think they are more concerned about explaining away tomorrow about their 11.927 Billion Baht in money transactions for their Red Shirt investments rather then seeking new ventures.

In a cashless society, they might struggle. I would imagine that all the people involved will all have very selective memory loss about where they spent the money.

The problem with this type of investigation is that it relies on ALL of them keeping schtum about ALL of their underhand dealings. No one dare shake that tree too hard.

[astral]

Not sure why it takes so long to determine the value is in fact 0?

I would have thought the figure will be negative, if you factor in all

the on-going benefits promised to card holders........

[Buchholz]

New information on the Elite Card on the other paper this morning has the Council of State deciding that the the card's extended visa privileges could no longer be used in describing the membership terms.

Options for the Card operator are to accept no new members beyond the current membership of 2,566 members, passing control to complete control of TAT which would then have take on the operational expenses of 108 million baht a year.

Plan B is close the company that operates the Card with the downside being potential refunds estimated at 3 billion baht and harming the country's image if members sued.

TAT is meeing next month to discuss the paths to go.

The plans to auction the Card to another company apparently has been scrapped, likely due to the starting bid set at half a billion baht.

,

Edited January 27, 2011 by Buchholz

[ovenman]

According to the article, Thailand Privilege Card Co plans to convert its last cash to approximately 130 million baht. Assuming no new income, nor any increased extraordinary expenses, that should give them funds to operate another fourteen months.

[rubl]

The Thai Elite Card was a brainchild of our esteemed leader and CEO k. Thaksin. It only took a few months to realize it was deadborn.

2004-03-25: "The Thailand Elite Card, a privileged VIP card, designed to give huge privileges to wealthy foreign tourists visiting Thailand, is struggling to stay alive.

Members subscribing for the Elite Card is not anywhere near the 100,000 members projected by the Thailand Privilege Card Co Ltd for this date.

Thailand Privilege Card Co Ltd has so far sold only 400 Elite Cards, a very far cry from the Thai government's ambitious target of 1 million cards it hoped to sell to well-heeled Thailand visitors.

...

Last week, Juthamas Siriwan, head of the Tourism Authority of Thailand, attended the IBT-Berlin Travel Fair in Europe, where she tried in vain to generate enthusiasm for the Thailand Elite Card in the European market. The Elite Card is a very important tool to help substantially increase the number of international business and economic leaders to Thailand, she said."

I wonder how much this disaster has cost the state already (i.e. the tax-payer) and if we could recover these costs somehow. I also wonder how much has been spent in 'personel costs' and 'additional expenses'

(edit: The state-owned Thailand Privilege Card posted accumulated losses of up to 1.14 billion baht as of 2006.)

Edited January 27, 2011 by rubl

[Buchholz]

1000000

- 02,566

997,434 shy of their total goal for Card membership.

Well done.

and to think, to be so nearly close to your goal, in just 7 years. Phenomenal success.

.

Edited January 27, 2011 by Buchholz

[Buchholz]

The Thai Elite Card was a brainchild of our esteemed leader and CEO k. Thaksin.

2004-03-25: "...

Last week, Juthamas Siriwan, head of the Tourism Authority of Thailand, attended the IBT-Berlin Travel Fair in Europe, where she tried in vain to generate enthusiasm for the Thailand Elite Card in the European market.

"

Thaksin and Juthamas.

Two people at the very top of the Thai Elite Card scam.

Both indicted for corruption.

I'm seeing a trend here with the Elite Card.

.