Thailand Elite Card Closes Down To The Tunes Of 2.5 Billion Baht

[george]

Elite Card decides to call it a day

BANGKOK: -- The cabinet yesterday decided to close down in 60 days the loss-ridden Thailand Privilege Card Co (TPC), operator of the Thailand Elite Card, the brainchild of former premier Thaksin Shinawatra.

The Tourism and Sports Ministry, whose state agency the Tourism Authority of Thailand (TAT) is TPC's sole owner, was instructed to prepare to compensate the 2,500-odd members should any of them take legal action once their membership is revoked.

The ministry yesterday asked the government to set aside 2.5 billion baht to compensate members and staff once the company shuts down.

Deputy Prime Minister Sanan Kachornprasart said the cabinet turned down the request but asked the ministry to submit details for consideration next week at what is expected to be the final cabinet meeting of this government.

Elite Card, launched in 2003, promised fast-track immigration, discounts at resorts and golf courses and other perks.

With members paying 1 million baht for a lifetime membership - prices later rose to 1.5 million - the goal was to attract a million subscribers in five years for revenue of 1 trillion baht.

But political changes and exaggerated services led to the Elite Card proving a flop, with only 2,565 members from 65 countries in its eight years in operation. TPC reportedly suffers a debt burden of more than 1.4 billion baht.

Battling to survive, TPC two years ago sought cabinet approval to allow private investment in the company. But the request was rejected, as the government would not allow companies to make decisions on visa fees.

Pensuda Priaram, the TAT's deputy governor for tourism products and business, said the 60-day deadline for terminating the company and the card would be hard to meet under the rules.

The TAT must come up with 500 million baht to pay for overdue registered capital to pave the way for termination, and plans to seek the sum from the Budget Bureau.

Prakit Chinamourphong, president of the Thai Hotels Association, said the project should have been shut down a long time ago.

Source: Bangkok Post 2011-04-27

http://www.bangkokpost.com/business/tourism/233921/elite-card-decides-tocall-it-a-day

[laurentbkk]

that's what we call a big flop .... I remember when they launched it .... I told myself there is nothing in Thailand to attract wealthy and rich people ....

[Crushdepth]

It will be interesting to see how much compensation members get, and how much arm-twisting they have to do to get it. Not so "elite" now !!

[Phil Conners]

No problem, just send Thaksin the bill. It was his idea ....

[Gonzo the Face]

Better yet, Just take it out of the Seized Thaksin Assets..... if any can still be found.

[somchaismith]

"was instructed to prepare to compensate the 2,500-odd members should any of them take legal action once their membership is revoked."

h

O! Of course they won't. They enjoy giving away money!

[Buchholz]

and, finally, after all these years,

it's d-e-a-d.

[Buchholz]

"was instructed to prepare to compensate the 2,500-odd members should any of them take legal action once their membership is revoked."

h

O! Of course they won't. They enjoy giving away money!

many, many of them were given out free... so involved giving away no money.

It'll be interesting to learn just how many of the 2,500 odd members were actually paid for as well as what sort of sliding scale TAT will determine for refunding based on longevity of card ownership and how many will be willing to take on the long drawn-out procedure and legal hassling that will be encountered when they attempt to pursue legal action to obtain a refund.

decided to close down in 60 days the loss-ridden Thailand Privilege Card Co (TPC), operator of the Thailand Elite Card, the brainchild of former premier Thaksin Shinawatra.

Does that also mean cardholders' visas will now expire in 60 days also?

.

Edited April 27, 2011 by Buchholz

[ratcatcher]

and, finally, after all these years,

it's d-e-a-d.

And so dear friends we say goodbye to yet another of Dear Leader's brilliant ideas (brain farts) that was designed to cater to the supposed tens of thousands of elites that would want to come to the Kingdom and live the high life.

Let's hope that some compensation is paid to the victims of this scam even if it has to be taken from his frozen ass ets. Dead and not yet buried.

[dunkin2012]

a political plunder............... ...

who will be responsible for the Thai Tax payers?..........

i want the red know that his boss is a dump a***ss. didn't a feasibility study before....

wait and see how much compensation the members will get back....

[Phuket Stan]

I know a couple of people who had these....they are both under 50 and have been very successful in life ... it was an easy way for them to live in Thailand....they did not mind spending the million baht...both just looked it as a tax for the style of life they wanted to enjoy...plus they were always fast tracked at immigration and originally had BWM's (now Toyotas)to take them to hotels etc...it did have some advatages to some...the idea was good but was flawed from the start by too much overload on expenses and staff...apparently my friends who had them also knew several expats in Sing who are members and enjoy tripping up to Phuket for the weekend hassle free

[givenall]

It will be interesting to see how much compensation members get, and how much arm-twisting they have to do to get it. Not so "elite" now !!

Why not just compensate them instead of waiting till theytake legal action. it is typical of Thailand to rip people off no matter who orwhat position they have. And please someone tell them it would cost more to compensateafter legal action is taken

[xbusman]

Just a note. As one of the group who understood from the outset that this was a scam due to for eventual failure, I never questioned the ability or wisdom of some people to buy such a service with the spare change normally found in their sock drawer as long as it was disposable money out of their lunch money.

I think that we will see the few people who purchased it at 1,000,000 baht back in 2003/2004 (40B/$) getting most of that back, say 900,000 baht after legal fees (29.8/$) for a tidy profit of about $5,000 US or close to 25% on their original investment over 7 years. Better than a T bill or savings account! During that time, they got some great free services, a few rounds of golf, ride from the airport, and all sorts of goodies. Wish my solid safe AAA+ T Bill from a country with unsustainable debt offered those services.

The risk for me was too much for the potential rewards but those few that could afford it might make out like bandits. In addition, they might end up with one last five year stamp in addition to making a little profit.

Not bad!

[george]

Cabinet Scraps Thailand Elite Card

BANGKOK: -- The Cabinet has ordered that the Thailand elite card project be dropped, while at least 2.5 billion baht will be approved to compensate cardholders.

The secretary to the Cabinet Amphon Kitti-amphon has revealed that the Thailand Elite Card project has finally been abandoned as it has resulted in a loss of some 1.14 billion baht since 2006.

However, Prime Minister Abhisit Vejjajiva has ordered that the closure be returned to a Cabinet meeting discussion again as a few details have yet to be discussed.

Deputy Prime Minister Major General Sanan Kachornprasart said the Cabinet has asked for the decision and the 2.5-billion baht compensation plan for its meeting next week.

The troubled card was introduced by then Prime Minister Thaksin Shinawatra in 2003 as a high-class program to attract wealthy travellers and business people who have high buying power.

The scheme promised to fast-track immigration privileges, long-term property leases, and offered discounts at luxury spas, golf courses, and hotels.

It was thought that the privileges would attract one million subscribers by 2008, but to date it has drawn only about 2,500 users.

The Tourism Authority of Thailand or TAT, as a major share holder of the card project, stated that a budget will be needed to pay off the remaining 500 million baht in registered capital.

TAT Director Suraphon Sawetseranee added that related officials should also consider the negative impact on Thailand after the project is cancelled.

-- Tan Network 2011-04-27

[Crushdepth]

Dear Elites

Welcome back to the immigration queue!

[sholaisen]

Not just yet... although I do understand everyones enthusiasm for giving the Thai Elite Members a hard time... thank you...

Just off the phone with Thailand Elite Member Service and nothing has changed from their side. They continue to operate and sarcastically commented that not everything you read in the papers is true. Regardless, this government is soon to be replaced and then the question will be raised again, and a new decision will be made. With Thailand's current political "stability" this could continue for many more years and if the end outcome is a closure I will be happy to receive my part of the compensation. Until then, Thailand Elite is still Thailand Elite, business as usual. Nothing will happen in the near future...

I believe the government is doing more harm than good by leaving Thailand Elite hanging in the air for so long. Why not support it and look for ways to gain back some of their losses. Benefits have already been reduced together with other expenses so if they could now be allowed to start getting some income they might have a future as a company. Seems like TAT is the only one to get it...

sholaisen

Dear Elites

Welcome back to the immigration queue!

[sholaisen]

Oh, and by the way, you don't need to be a Thailand Elite Member to get Fast Track Immigration... just get a Wisdom Credit Card from Kasikorn Bank... took me about 10 minutes...

sholaisen

Not just yet... although I do understand everyones enthusiasm for giving the Thai Elite Members a hard time... thank you...

Just off the phone with Thailand Elite Member Service and nothing has changed from their side. They continue to operate and sarcastically commented that not everything you read in the papers is true. Regardless, this government is soon to be replaced and then the question will be raised again, and a new decision will be made. With Thailand's current political "stability" this could continue for many more years and if the end outcome is a closure I will be happy to receive my part of the compensation. Until then, Thailand Elite is still Thailand Elite, business as usual. Nothing will happen in the near future...

I believe the government is doing more harm than good by leaving Thailand Elite hanging in the air for so long. Why not support it and look for ways to gain back some of their losses. Benefits have already been reduced together with other expenses so if they could now be allowed to start getting some income they might have a future as a company. Seems like TAT is the only one to get it...

sholaisen

Dear Elites

Welcome back to the immigration queue!

[Abrak]

Dear Elites

Welcome back to the immigration queue!

However badly things turn out, I very much doubt I will be forced to join the immigration queue!!

[jimbeam1]

that's what we call a big flop .... I remember when they launched it .... I told myself there is nothing in Thailand to attract wealthy and rich people ....

Actually back in 2003 one million baht was not a great deal of money. So if it had attracted you, you would not have needed to be so wealthy.

jb1

[Crushdepth]

The sad part is, the scheme could have worked if it had offered a few *real* concessions, eg. residency, land ownership etc. If you want 'high value' foreigners to contribute more to the local economy, why not encourage them to stay?

Unfortunately, Thailand wants the $$$ but not the people who bring it.

Edited April 27, 2011 by Crushdepth

[Buchholz]

Regardless, this government is soon to be replaced and then the question will be raised again, and a new decision will be made.

The cabinet yesterday decided to close down in 60 days the loss-ridden Thailand Privilege Card Co (TPC), operator of the Thailand Elite Card

The government will still be in place when then Card is shut down. It's not being replaced for a longer period.

Nothing will happen in the near future...

After tomorrow, I consider 59 days as near future.

Dear Elites

Welcome back to the immigration queue!

[Tompa]

I think that we will see the few people who purchased it at 1,000,000 baht back in 2003/2004 (40B/$) getting most of that back, say 900,000 baht after legal fees (29.8/$) for a tidy profit of about $5,000 US or close to 25% on their original investment over 7 years. Better than a T bill or savings account! During that time, they got some great free services, a few rounds of golf, ride from the airport, and all sorts of goodies. Wish my solid safe AAA+ T Bill from a country with unsustainable debt offered those services.

i really don't see this happening. They always had a disclaimer stating that the program can be canceled at any time. Why would they grant a refund in this case?

[Buchholz]

The sad part is, the scheme could have worked if it had offered a few *real* concessions, eg. residency, land ownership etc. If you want 'high value' foreigners to contribute more to the local economy, why not encourage them to stay?

Unfortunately, Thailand wants the $$$ but not the people who bring it.

The card's initial claim of offering land ownership sparked huge interest.

When that quickly fell by the wayside, they lost customers that would likely have numbered in the thousands.

It was easily one of the core attractions if not # 1 for many potential buyers.

What always strikes me as humorous was the visa aspect which was really only an after-thought. A last minute throw in for the program which was always listed near the bottom of its list of privileges in the glossy sales brochures and ads that were first produced. And then, how, eventually, it ended up being one of the primary reason for later buyers to get into the Card scheme. It had become the # 1 attraction for a whole different segment of customers, albeit a much smaller niche' than the group attracted to its land ownership potential. Indeed, it became the sole reason that many later buyers got one.

.

Edited April 27, 2011 by Buchholz

[dunkin2012]

Dear Elites

Welcome back to the immigration queue!

However badly things turn out, I very much doubt I will be forced to join the immigration queue!!

The Ad. looks cool.... ...

but sorry ............. Queuing next time(have to)

For more information .....please visit......... haha........

Thailand elite

[sholaisen]

Compensation is mentioned in my contract...

I think that we will see the few people who purchased it at 1,000,000 baht back in 2003/2004 (40B/$) getting most of that back, say 900,000 baht after legal fees (29.8/$) for a tidy profit of about $5,000 US or close to 25% on their original investment over 7 years. Better than a T bill or savings account! During that time, they got some great free services, a few rounds of golf, ride from the airport, and all sorts of goodies. Wish my solid safe AAA+ T Bill from a country with unsustainable debt offered those services.

i really don't see this happening. They always had a disclaimer stating that the program can be canceled at any time. Why would they grant a refund in this case?

[sholaisen]

Time will tell who is right... I'm however willing to bet a lot of money that they are not closed in 60 days...

Regardless, this government is soon to be replaced and then the question will be raised again, and a new decision will be made.

The cabinet yesterday decided to close down in 60 days the loss-ridden Thailand Privilege Card Co (TPC), operator of the Thailand Elite Card

The government will still be in place when then Card is shut down. It's not being replaced for a longer period.

Nothing will happen in the near future...

After tomorrow, I consider 59 days as near future.

Dear Elites

Welcome back to the immigration queue!

[ovenman]

What always strikes me as humorous was the visa aspect which was really only an after-thought.

I also recollect that initially Thailand Elite claimed to not be targeting customers who were living in Thailand nor was the visa designed to become a de facto method of permanent residence. All of that seemed to fall by the wayside though when Elite Card sales numbers didn't ummm... quite meet their projected target.

[sholaisen]

Giving residency and landownership rights for 1 million baht would be the same as inviting every criminal to come live in Thailand. I understand why so many honest people would have liked these benefits. Unfortunately this is a bit naiv...

In my case, coming and going quite frequently was the incentive. Which includes the visa privileges...

[Buchholz]

I think that we will see the few people who purchased it at 1,000,000 baht back in 2003/2004 (40B/$) getting most of that back, say 900,000 baht after legal fees (29.8/$) for a tidy profit of about $5,000 US or close to 25% on their original investment over 7 years. Better than a T bill or savings account! During that time, they got some great free services, a few rounds of golf, ride from the airport, and all sorts of goodies. Wish my solid safe AAA+ T Bill from a country with unsustainable debt offered those services.

i really don't see this happening. They always had a disclaimer stating that the program can be canceled at any time. Why would they grant a refund in this case?

I would think any decent government lawyer might easily end up with him saying, "Sorry, no refund"

The Member agrees that the Company may from time to time amend or supplement the Individual Membership Agreement.

Termination due to government policies  

In case there is any order, rule, regulation or law announced by any related government authority which has an impact on the business operation of the Company to the effect that the Company is unable to continue its business or perform its operations as usual, the Company shall be entitled to terminate the Membership by giving an advance written notice to the Member.

Rights and duties after termination

The Company reserves the rights to modify, cancel and/or prescribe further limitation on any of the Privileges without prior notice.

[Buchholz]

What always strikes me as humorous was the visa aspect which was really only an after-thought.

I also recollect that initially Thailand Elite claimed to not be targeting customers who were living in Thailand nor was the visa designed to become a de facto method of permanent residence. All of that seemed to fall by the wayside though when Elite Card sales numbers didn't ummm... quite meet their projected target.

yeah... a mere 998,000 shy of their goal.

And yes, the initial thought was these buyers would not be staying here semi-permanently, let alone permanently. It was going to be all the European jet-setters winging in for a weekend of golf or Japanese head honchos coming in for a week-long business conference. Boy, did that ever not happen.

It was interesting watching as, instead, a wholly different set of customers bought in following a whole revamp of the Card's focus.

The issuance of life-long benefits was predicated on continual sales, and when that failed, it, like all Ponzi schemes, collapsed on itself.

.

Edited April 27, 2011 by Buchholz