Business In Ko Chang

[ThaiPauly]

I have found an opportunity to open a business in Ko Chang.

This place seems very laid back and I see many farangs running small businesses without what I consider to be the right qualifications to do so. ie just a guy and his girlfreind selling paintings from a small unit.

I have been down the whole WP road before and it is very expensive, but I would not risk not having one as I beleive if I was seen to be working I could face deportation, but it seems very tempting as a lot of other people seem to be working without one here.

I feel I have to go down the Company route as my investment would be more than 10m baht, which would of course should I buy it, without forming a Thai Company would all go in my Wife's name, and although I love her dearly I have already put a house in her name and am loathe to risk more.

There are two shop houses in a good location on the island which I want to buy and put join together to make one big shop/house. Ko Chang seems a very up -and- coming area there is building going on everywhere and prices seem to be going up daily, so I dont want to miss out on this chance.

I have had businesses in LOS before that have failed because at the time my understanding of the country was limited, I know more now. At least the buildings which would cost around 7m baht would be safe if the business did not succeed, so that money could be recouped

My question is has anybody out there got a business in Ko Chang (or had a business in Ko Chang) and is it one of the better places to do business?. Chaing Mai in my opinion after months and months of looking for the right opportunity is not.

Secondly what is the average cost to form a Thai company these days?

Thanks in Advance

TP

[Tompa]

Hi TP,

Don’t have any first hand experience in doing business at Koh Chang, but have spent a lot of time there during the last 4 years (live in Chanthaburi and pretty much go to Koh Chang at least once a month), so at least I can offer my humble opinions.

Firstly, you have to remember that Koh Chang is located in one of the wettest provinces of Thailand. This means that the high season is normally shorter than other places in Thailand (such as Pattaya, Phuket). This will obviously affect any business targeted at the tourism market (pretty much any business on Koh Chang)! What I have seen is that the majority of visitors are still Thai people, but there has been a steady increase in Western Tourist in the last couple of years (= higher spending power).

I spent a week there during Song Kran and met quite a few families from Europe who initially planned to go to Phuket but changed their mind after the horrible Tsunami catastrophe at the end of last year. As horrible as the Tsunami catastrophe was for Phuket and surrounding areas, it will have a positive effect for Koh Chang in that many more people will discover this somewhat hidden treasure.

Is Koh Chang a good place to do business? I’m not 100% convinced yet. I have had 3 close friends (all Thai) who have had businesses on Koh Chang and all failed (2 restaurants and 1 guesthouse/bar). These were all located in prime location on White Sand Beach and Kai Bae Beach. I wouldn’t venture into anything on Koh Chang unless I could get the real estate at a very, very good price.

[Koh_Chang_Farang]

The actual number of tourists wandering around is still very low compared to better known tourist spots. Therefore the places that succeed are those either on the beach or who make a bit of an effort style wise. i.e. have a nice stand alone building.

I've seen loads of bars, small restaurants come and go in the 2 years I've been here. Some areas- such as roadside units in Kai Bae seem to have a built in 6 month life span for small businesses. there are too many crap bars & restaurants.

Visitors of all ages & wallet sizes always prefer to drink & dine near the beach, they'll only venture roadside for a sepcial place. ( Invito on Whitesands is a good example of this - the most expensive restaurant on the island, but you pay for guaranteed, excellent quality food. No one goes there every night of their holiday - but loads of people go once as a treat.)

Another of the problems is the short season - you've got 6 months to make your money. ( The island is dead now, went down to the beach this morning with the dog, it was a lovely sunny day - and walked for about a kilometre - saw no-one else. Zero people on the sand, on sun loungers in front of 3 large resorts or in the sea.)

Having said that it means that there are opportunities if you can spot a niche that will grow as the number of expats and visitors increase. Downside is that you'll have to wait to make your money, it isnt a get rich quick island like Samui etc.

Land & property priceshere are pretty crazy on the west coast, a single house on a quarter rai of Chanote land sells for around 5 million baht in Klong Prao. About the cheapest detached house you can find is 3.5 million or so on a very small 'Chanote' plot.

Judging by the emails I get through my site - www.iamkohchang.com - what the island needs now is affordable, good quality long stay bungalows - nothing fancy & would only cost a couple of hundred grand each to build. You could have a dozen of these on a rai of land and be sure to fill them all at rentals of at least 7,000 baht/month. (Which is what people pay for a very small- 24sqm - apartment in Whitesands.)

[ThaiPauly]

Hi guys,

thanks for your responses.

I have just returned from 8 days there looking at every conceivable opportunity that suited my skills and I could not find one that I thought would make money.

Both of you are pretty much on the mark with my thoughts, I also heard that there was a lot of press last week about Farangs being kicked out because they had fake Chanot deeds.

Scarry stuff, no thanks.

Cheers boys

TP

[Koh_Chang_Farang]

Not heard about any farangs being kicked off any land. All the disputes reported in the Bangkok Post relate to navy land and locals who lived there before the navy claimed the land, and still live there.

If you dont have a lawyer check the validity of a title deed before handing over cash then you shouldnt be surprised if you get burned- regardless of location.

[pktkid]

Not heard about any farangs being kicked off any land.  All the disputes reported in the Bangkok Post relate to navy land and locals who lived there before the navy claimed the land, and still live there. 

If you dont have  a lawyer check the validity of a title deed before handing over cash then you shouldnt be surprised if you get burned- regardless of location.

<{POST_SNAPBACK}>

Hi Koh Chang farang, you seem like a very helpful chappy ! Just had a look at your website, made me chuckle a bit. Shame more cant be like yours.

Maybe you can help me something, im in the process of doing a website myself mainly for Phuket and was considering having R24 on there, like you say purely to feed the dog (even though it would be nice to fund a boat), anyway, I sent them an e mail to R24 asking for info, until now no reply !

Any tips for me ?

[Koh_Chang_Farang]

New R24 account sign up page: http://r24.th66.com/newaccount.html

Good affiliate program, easy to get started and they pay out on time.