Don't Let Vested Interests Spoil Bangkok's Chatuchak Market

[webfact]

EDITORIAL

Don't let vested interests spoil the weekend market

The Nation

The question of who should manage Bangkok's Chatuchak Market should not degenerate into a turf war at the expense of the Thai public and tourists

Amid the wrangling over which agency should manage Bangkok's famous Chatuchak Market, the Cabinet yesterday acknowledged a proposal from the Transport Ministry to let the State Railway of Thailand (SRT) operate the market, which has been developed by the Bangkok Metropolitan Administration (BMA) for more than 30 years.

The Transport Ministry pushed this proposal to the Cabinet after the BMA was reluctant to accept a rental hike on the market from the current Bt24 million to Bt100 million, as demanded by the ministry.

As of press time, the BMA has yet to make any comment about the latest development. Nevertheless, it remains to be seen if the wrangling over the management of the highly profitable weekend market will spill over into another political conflict between the Pheu Thai Party, which oversees the Transport Ministry, and the Democrat-controlled BMA.

Being a big attraction for both local people and overseas tourists, bustling Chatuchak Market is estimated to earn several million baht in turnover each month, as hundreds of thousands of shoppers visit it each weekend.

The rental fees that the BMA collects from the market's tenants are quite low when compared to the turnover that the vendors can earn from local and international shoppers. However, it is no secret that although the official rental fees at Chatuchak are only Bt142 per square metre, the actual rental fee is several dozen times higher because a majority of the market's stalls are illegally sub-leased.

As a result, the state has been denied that extra income because the transactions are done without proper documentation from the BMA. Sub-lease brokers have reaped profits without sharing it with the authorities who run the market.

Although the market is popular with tourists and local shoppers alike, there is still room for developing and improving the management of the huge site. First of all, the rental collection system must brought under control and be further improved. Regarding the type of goods on sale, illegal items such as wild and protected animals should be strictly prohibited.

The proposed transfer of management to the SRT does not promise brighter prospects for the market either. The SRT's track record is even worse than the BMA's in terms of management efficiency and transparency. In fact, the BMA can claim some credit for renting this previously abandoned SRT plot of land near Chatuchak Park and developing it into the popular weekend attraction it has become.

Conversely, the debt-ridden SRT has failed to produce profits from its operations, even though it has many properties and a large number of personnel. Every government has to use taxpayers' money to subsidise the entire SRT operation. Indeed, the SRT has suffered losses every year since it was turned into a state-owned enterprise under the Transport Ministry in 1951, and its debt has risen significantly. In addition, the SRT has a strong labour union that tends to resist change, as is evident in the Airport Link case, which is already running in the red.

Neither the SRT or the Transport Ministry has a clear plan to develop the market. So far, the ministry has only said that it plans to set up a company under the SRT to operate the market - which certainly does not offer any guarantee of the market's future success.

The agency that will take over the management of the market will have to answer to the public if something goes badly wrong in the Chatuchak operation. After all, the market does not belong to any particular group of politicians but the public in general, who deserve to benefit from transparency and efficiency in the market's operation.

The change of management should not come from politicians' greed or political wrangling because control of the BMA could always go over to the Pheu Thai Party, should Pheu Thai candidates wins the Bangkok gubernatorial election next year. The transfer of management should be based on the merits of the contract plan and the wider potential of the market. Nobody should forget that the market has become a great tourist attraction for Thailand, known worldwide because of its vibrant atmosphere and diverse merchandise.

-- The Nation 2011-12-28

[goober]

Thailand, hub of killing the golden goose.

[jalansanitwong]

They've virtually wrecked Kaosan road which used to be the backpacker centre of SEAsia. Most of the old accomdations have been rebuilt into expensive eateries, expensive rooms , abusive Indian tailors, KFC ,Mc Donalds and glossy shops. No atmosphere and dead. Where are the backpackers?

If Chatuchak is taken over by amatuers it will go the same way as kaosan rd. Thais have no idea how to manage these things. Dob some paint here and there,lay some stupid slippery tiles that rise after the rainy season and become a health hazard and boost the rental fees. JJ is already starting to get pricey.

Edited December 28, 2011 by jalansanitwong

[JurgenG]

They've virtually wrecked Kaosan road which used to be the backpacker centre of SEAsia. Most of the old accomdations have been rebuilt into expensive eateries, expensive rooms , abusive Indian tailors, KFC ,Mc Donalds and glossy shops. No atmosphere and dead. Where are the backpackers?

If Chatuchak is taken over by amatuers it will go the same way as kaosan rd. Thais have no idea how to manage these things. Dob some paint here and there,lay some stupid slippery tiles that rise after the rainy season and become a health hazard and boost the rental fees. JJ is already starting to get pricey.

JJ has been pricey for some time already. For example, just for a simple dish, 15 Bahts in Isaan, 30 Bahts in Bangkok, 50 to 100 Bahts in JJ Market. And it's for everything the same : furnitures, clothes, plants ....

The only reason we still go to JJ is to visit the showrooms of some designer shops. It's expensive but you pay for the design, you can't really find the same in the country side.

[beano2274]

SRT have got the rights to Chatuchak Park already decided.

They also own the land which is currently used by Sofitel Centara Grand and Central Ladprao.

[TAWP]

The Transport Ministry is demanding that the Bangkok Metropolitan Administration (BMA), that has run the area for 30 years, should hike the rent from 30 to 100 million per year (would you accept a price-hike as this?) and when they refuse the government decides to let State Railway of Thailand (SRT) take over control, presumably since they are more in the governments control - even if SRT by any measure is a failure for over 50 years and haven't managed to run anything successfully.

Don't you just love when competence rules?

[billd766]

From what I read of the article this morning SRT was actually formed back in 1951.

Since it was formed it has NEVER ever made a profit and has been subsidised by the governments for the past 60 years.

It doesn't have a good track record (pun intended) and now they want to run Chatuchak Market?

Perhaps into the ground or into some politicians pockets.

[daninthai]

The Transport Ministry is demanding that the Bangkok Metropolitan Administration (BMA), that has run the area for 30 years, should hike the rent from 30 to 100 million per year (would you accept a price-hike as this?) and when they refuse the government decides to let State Railway of Thailand (SRT) take over control, presumably since they are more in the governments control - even if SRT by any measure is a failure for over 50 years and haven't managed to run anything successfully.

Don't you just love when competence rules?

The profits from BMA make from the market are in the billions of Baht. They were stupid and greedy to complain about the hike, and now they will lose the profits completely. Too many short-sighted morons in control I think.

SRT is not likely to do a good job of running the place. Likely to over-develop and so kill off the whole experience of getting some cheap products.

[Pib]

Why are so many things/companies/etc., owned/run by state agencies in Thailand!!??? Oh yea, I forgot, money.

[hbullinger]

With the SRT running Chatuchak Market, does that mean the opening times of the market will be delayed by 1 to 6 hours every day like the arrivals of their trains in Hua Lamphong?

[smutcakes]

The Transport Ministry is demanding that the Bangkok Metropolitan Administration (BMA), that has run the area for 30 years, should hike the rent from 30 to 100 million per year (would you accept a price-hike as this?) and when they refuse the government decides to let State Railway of Thailand (SRT) take over control, presumably since they are more in the governments control - even if SRT by any measure is a failure for over 50 years and haven't managed to run anything successfully.

Don't you just love when competence rules?

I could be incorrect and would be happy to be corrected, but from my understanding the land actually belongs to SRT and they leased it out to the BMA to operate on a 30 year lease which is coming to an end. As there right as Landowner on expiry of the 30 year lease they can either renegotiate the terms with the BMA which BMA can either accept or not accept, or they can take their land back. Personally I don’t see how the BMA has a leg to stand on with this.

The above is not to say that it would be beneficial for the SRT to get the land back and manage it themselves, as they have shown their incompetence on numerous issues over the years, just from my understanding it is quite clearly the SRT’s land and their right to operate it if they wish, if the BMA will not accept the new proposed lease terms, however unreasonable they may seem.

[finnomick1]

What the heck does the State railway or the Ministry of Transport got to do with a market ? Perhaps the State railway should spend more of its time stopping level crossing accidents, and the Ministry of Transport could get it's act together and start improving some of the diabolical road surfaces we endure driving on.

[Oberkommando]

(Chatuchak Market) known worldwide because of its vibrant atmosphere and diverse merchandise.

But mostly for the illegal sale of endangered wildlife.

Where are the backpackers?

Cambodia, Laos and Vietnam. Phnom Penh was fully booked out last week and over the Christmas period when I visited.

[anterian]

(Chatuchak Market) known worldwide because of its vibrant atmosphere and diverse merchandise.

But mostly for the illegal sale of endangered wildlife.

Where are the backpackers?

Cambodia, Laos and Vietnam. Phnom Penh was fully booked out last week and over the Christmas period when I visited.

Chatuchak market is too large, you need a map, it is also very overpriced compared to real street markets.

Khaosan road is sad, gone are the days it took 30 minutes to struggle through the crowds from one end to the other, now it is a 5 minute stroll. There is a point at which the quest for profit drives away the customers, something Thais do not seem to understand.

[BigJohnnyBKK]

Public agencies are actually licenses to print money for those who have paid for (or otherwise earned) the right to operate them for their own private profit. JJ looks like a gold mine, and my guess is the middleman families are on the "other side" of the color fence.

Face it, it isn't the Thai government's job to do things for the benefit of its own people, much less for foreign guests, it's just one of the central points of power that the various mafia can use to control their empires.

And any important Thai would agree that the Khao San area has been much improved over the years - the patrons of Sofitel Centara Grand and Central Ladprao, that's what Thailand wants more of, not those scummy-looking cheap charlie backpackers.

[airconsult]

With all the illegal subletting going on that BMA will say they weren't aware of....

I finally realised the management principle they followed - the "Schultz" method....