Why Phuket Needs The Russians

[webfact]

Why Phuket needs the Russians

PHUKET: -- A Russian guest was so happy recently with the service at a swanky restaurant, where he had been dining with his family, that at the end of the meal he threw a wad of baht notes into the air as a tip for the Thai staff.

Mayhem ensued as the waiters – to the complete disgust of the owner – scrambled for a share of the B20,000 littering the floor.

A crass gesture, perhaps, but one that gives the lie to a commonly held opinion on the island that the Russian tourists coming here these days are all cheap-Charlie, zero-dollar visitors.

Since Russian President Vladimir Putin spent a few days in Phuket about nine years ago – one of the very first Russians to visit the island, and himself a noted big spender – word has spread and today the Russians pour in by the thousands every day.

Last year Russian tourists and Chinese visitors – the other big boom group – accounted for 38 per cent of arrivals to Phuket, and more than 3 million people from China and Russia visited Thailand as a whole.

Some numbers: In a recent report, consultancy C9 Hotelworks said the largest spending by tourists in Phuket was on accommodation (30 per cent), followed by shopping (24 per cent).

Chinese, Russian and Australian visitors were the top spenders at leading shopping centres.

The top five international source markets for the island-province accounted for 60 per cent of all tourists last year, up from 56 per cent in 2011.

They were China (22 per cent), Russia (15 per cent), Australia (10 per cent), South Korea (9 per cent) and Malaysia (4 per cent).

The number of Russians living on the island, too, has swelled. Estimates by expat Russians themselves of the number of their compatriots in Phuket on non-immigrant visas vary between 1,000 and 5,000, depending on the time of year.

Phuket’s Russian community even has its own church now, the Holy Trinity Church in Thalang, built with funds raised in the Russian community, proof positive that there is money around.

So are Russians cheap-Charlies, or are they the geese laying golden eggs?

The manager of a Phuket luxury villa rental company, specialising in middle- to high-end villas, told The Phuket News that the number of Russian clients coming to him was increasing at such a rapid rate that he was looking into getting Russian agents to handle the demand.

Christmas and New Year were the peak time for Russian tourists to rent villas on his books, with families paying up to US$10,000 (B300,000) a night for a five- or six-room villa.

The individual numbers are impressive: one Russian group of 10 people came over for 10 nights, and paid US$32,000 (B960,000) – in cash – to rent a five-bedroom villa from the agent.

“The Christmas just gone we had another Russian client who spent US$90,000 (B2.7 million) on a villa for six weeks.”

Asked if Russian tourists were cheapskates, he said, “I totally disagree with that. The cheapest tourists we get are Singaporean, Hong Kong-Chinese, and Indian. You cannot compare the Russians with them in terms of spending.

“As far as I’m concerned the Russian clients we have had are all very high-end and spend a lot of money.”

As for people who complain that Russians don’t spend much money on things other than accommodation, he said he believed they did spend the money, but with companies that have Russian-speaking staff.

“Ninety per cent of them don’t speak any English. The high-end ones do; they’re educated. But the Russians who stay in hotels often can’t communicate. Which is why they tend to go to the Russian-operated businesses. They probably do spend money but they spend it with Russian-speaking companies.”

A Phuket car rental agent agreed. He said that in the three years he had been renting out vehicles he had noticed a significant increase in the number of Russian customers.

“Especially since I started advertising convertibles for rent, 90 per cent of the [hirers] of these cars have been Russians. The cost is B4,000 to B5,000 a day for the convertibles.”

The reason Russians want to rent a convertible, he said, is “for lifestyle reasons”.

“They like exclusive things. And that’s the problem – there are not too many exclusive things in Phuket.

“The Russians who come to stay two or three weeks have money to spend. They have no trouble paying, even when there is damage.

“My friend rents out motorbikes, the big bikes, and 60 per cent of his customers are Russian. There are never troubles with them paying.

“I also get a lot of requests from Russians who want small cars, and for these they are happy to pay B20,000 a month. Many Russians prefer cars to bikes. Russia itself is a dangerous place to drive, so they feel safer in a car – especially when they have a child.

“I have many long-stay customers, who stay three or four months and rent a house. But most stay short-term over the high season, and they have money. They rent expensive villas. When I deliver a car it is usually to high-priced accommodation.”

A manager at a Phuket entertainment venue said about 20 per cent of his clientèle are Russians, and many have a lot of money.

“The rich can spend a lot. For example, a bottle of champagne might cost B24,000. And sometimes they buy two or three bottles [in a single evening].”

A representative of another venue said, “They like to book private parties, and are happy to spend a lot for exclusive extras in terms of entertainment and champagne.”

This, of course, is by no means all Russians. Some, like many of the Chinese, do come on zero-dollar packages, with flights, accommodation, meals and tours prepaid, and spend little in the local market.

But like all nationalities, Russia has its not so wealthy people and its very wealthy people. And for the latter group when they arrive in Phuket, it seems that mere money is never going to get in the way of having a thoroughly good time. Perhaps more so than any other nationality.

Source: http://www.thephuketnews.com/why-phuket-needs-the-russians-38023.php


-- Phuket News 2013-03-21

[eezergood]

We get good Russians in my workplace, a few idiots also but no more then anyone else. As the article suggests, they have CASH to spend! as we know cash is KING

[bubblegum]

The high-end, big spenders are already leaving Phuket because there are not enough luxery, exclusive things to buy.

[eezergood]

Ask the golf courses if that is so........

[epicstuff]

They are either very rich or poor and ignorant, just a massive divide . of course if you deal in luxury villas you will only see the rich Russian , stupid comment to make really; if you walk around near an area with a hotel catering for chartered holidays for russian you will see the street full of the other kind.

[harrycallahan]

I can imagine them having a fair share of Rodney Dangerfield types.

[stevenl]

I don't experience and see the Russian wealth the article is talking about, but also, nowhere in the article does it meet the headline: why Phuket needs the Russians. It does meet the stereotype of the Russians though: ill mannered, even those with money.

There is one more line in the article that is important: "This, of course, is by no means all Russians. Some, like many of the
Chinese, do come on zero-dollar packages, with flights, accommodation, meals and tours prepaid, and spend little in the local market."

I wonder how the writer reached the conclusion 'some', because in my experience and from what I see this is a vast, vast majority of the Russians, not just 'some'.

[Andre0720]

Why Phuket needs the Russians

The top five international source markets for the island-province accounted for 60 per cent of all tourists last year, up from 56 per cent in 2011.

They were China (22 per cent), Russia (15 per cent), Australia (10 per cent), South Korea (9 per cent) and Malaysia (4 per cent).

Appears to me that Phuket needs TOURISTS, period.

And if China accounts for some 22% of visitors compared to 15% of Russians, why do I feel I am in Russia rather than in China when I walk down the streets of Kata Karon and look at the signage???

[BrooklynNY]

In my neighborhood there are majority working to middle class Russians and the location where I work there are upper class Russians reside at an up scale condominium located by the beach called Brighton beach, they drive mostly German cars and many of them are doctors or business owners. Those Russians don't travel to Thailand. They prefer going to Caribbean islands. There must be Russians tourists from Russia who travel to Thailand because it is still cheap eat in Thailand comparing to Russia.

By the way, many Russians in NY so far I have seen are arrogant, aloof, bitchy (both men and women) and mean. They are good at cheating that they must have had connections in getting into city public assistance. Many elderly Russians come to USA and shortly afterwards they are hooked up with city public assistance. They don't look poor to me the way they are dressed in fur coats and fur hats in winter.

I have known one very nice Russian lady who owns a Russian delicatessen in my neighborhood. For many years, she would not talk to me until after my help with a rescue of two feral cats in her back store to take the cats to be spayed. She has been so friendly to me ever since.

Edited March 21, 2013 by BrooklynNY

[jbrain]

Mayhem ensued as the waiters – to the complete disgust of the owner – scrambled for a share of the B20,000 littering the floor.

A crass gesture, perhaps, but one that gives the lie to a commonly held opinion on the island that the Russian tourists coming here these days are all cheap-Charlie, zero-dollar visitors.

Was this article written by a Russian by any chance ?

Ok point taken.............All Russians are rich. NEXT

[lemoncake]

It's quite funny to read this days after they raided Russian owned business , arrested people and helped locals to close some more.

One thing about Russians , if they do not have their own agents they stop to visit.

Reading the article one might believe that Russians are rich and have too much money to blow, where the reality is very very tiny few have money, while vast majority hardly have enough to have a holiday.

[eeeya]

I can imagine them having a fair share of Rodney Dangerfield types.

The males all look like Rodney dangerfield

Ha!

Edited March 21, 2013 by eeeya

[muratremix]

What phuket needs is more and more rude Russian tourists (ok, some of them are nice, but not more than 5, at best 10 percent of whole), yeah right.

[axel2001]

Russian tourists spend around 32 billion dollars a year for travels.

[jamhar]

"making it rain" maybe ok for a strip bar,

but in a restaurant? Come On Man!

That completely lacks class.

A tasteless, albeit, financially nice gesture.

One nice upside,

at least the patron knew who was getting the money.

If i leave tip with the bill, i don't always know who is getting the money

so In TL,i tip the server, discretely, directly when possible.

[me313]

If the label "Russian" were substituted for "black", as in "blacks are okay, we need them in Phuket" you would (one hopes) get people complaining about the racist comments. How can you publish such stereotype ideas that are so narrow-minded and bigoted? Cultural differences aside, they really have great European influence, are caucasian, and really have mostly the same type of cultural heritage as Europeans. In my opinion, if I may, it's just an attempt to bash a group of people who appear to be threatening the established EU stakeholders in Thailand. I am in no way defending Russians, I'm talking about the overt racism and bigotry that comes out in the open here in Thailand because many of the restrictions in Western countries are lifted. There are no legal bans on wearing swastikas, and Thai people wear them because they have essentially been inducted into Nazism through a carefully planned and strategic push to buy them out and turn them into puppets. The racism and bigotry in Thailand is so open and exposed, and this anti-Russian crusade is yet another example of this type of hate. But when it all comes down to the bottom line, it does just all end up with who gets to own what, who has the "power", and this issue really is about a power struggle for control, money and power in Thailand and Russians are an outside group to the EU members. If Russia were a member of the EU, I believe this open form of racism would not be expressed at all but they would instead be welcomed here. Since I'm American, I don't give a d*** about any of ya'll bigots here!!! (lol, just kidding, but not really). I hope to meet people here who can think independently and see people as human beings, part of the world and not as symbols of hate.

Edited March 21, 2013 by me313

[stevenl]

Make it a powerstruggle between the Thais and the Russians and you're (partly) correct, but to throw in the EU?

Maybe look up the origin of the swastika BTW, completely wrong example.

Edited March 21, 2013 by stevenl

[JCaligula]

I so much agree with SrevenI and BrooklyNY,whoever wrote are just another pro-Russians simply because he made from them.After the fall of communism in Soviet,ever since then the Russians wanted proved something that they've been looked down as the poor of the Europeans so this past decades ago they have managed to archived some sort of level to be recognized by the world that they had became rich but the reality is they are always on the show,on the limelight every where you go.The fact is the are the 'Big Show off',it's their nature-communist mentality!!. The Chinese are whole loads of wealthy people but they don't go around and splash money 24,000 on a bottle of Champagne,that's only for an show-off Idiot and there is more Rolls Royce in Hong Kong then any where else in the world.The super rich are all in China now or in India and Singaporeans are the world's richest middle class in terms of cash and assets.They are not the Idiots,they are smart and shrewd when come to business.The Singaporeans,Malaysians and the Hong Kees are the biggest investor in London as for now and the market is much dependent on them.They are not fools going around and splashing 32,000 dollars for few nights. Infact if they liked Phuket as their investment point then they would rather buy off the propereties but you know they are the investor here. Why? So don't go around and bluffing about the Russians and yes they are the Cheapskates because i had experiences with them before.If they spend money easy way then they got the money in easy way...

[RamblingSam]

I suspect, the reason why the Chinese arriving in Phuket prefer to come on all prepaid holidays may well be because the tour operator in China, is 'managed' by one of China's 'Politico's' seeking to oversee what their customers are exposed to in a non-communist environment. Mind you, on the other hand these tourists may well have heard of Thailand's reputation for scams etc, and go for a tour package that advertises itself as reducing the risk of customers getting ripped off .... whilst the operator is actually 'milking off' it's customers behind their backs!

[JetsetBkk]

Russian President Vladimir Putin spent a few days in Phuket about nine years ago – one of the very first Russians to visit the island...

"One of the very first" ? Complete nonsense.

[Pops]

I don't experience and see the Russian wealth the article is talking about, but also, nowhere in the article does it meet the headline: why Phuket needs the Russians. It does meet the stereotype of the Russians though: ill mannered, even those with money.

There is one more line in the article that is important: "This, of course, is by no means all Russians. Some, like many of the

Chinese, do come on zero-dollar packages, with flights, accommodation, meals and tours prepaid, and spend little in the local market."

I wonder how the writer reached the conclusion 'some', because in my experience and from what I see this is a vast, vast majority of the Russians, not just 'some'.

Look at the average joe coming from Britain, Germany or anywhere else in Europe, coming to Phuket, they're also zero spending, sometimes ill mannered, tasteless, whatever.

So what ?

Like Phuket is such a high end holiday destination, don't make me laugh.

Thailand is a mix of very high end and very low end of everything, co-existing together (usually in the same street), that's what makes it wonderful, and the Thai tourism sector needs the Russians as well as all other possible world clientele and there is something for everyone.

[lemoncake]

while at the same time

Phuket Russians targeted in Thai New Year crackdown

http://www.thaivisa.com/forum/topic/627233-phuket-russians-targeted-in-thai-new-year-crackdown/

[elsmido]

If you look at the way western Europeans were when they first started travelling en masse, about 30-40 years ago, they generally travelled in groups, on charters or all-in trips. Aussies were the original 'backpackers'. Now every European kid has to take a 'gap' year to go and see the world.

You will probably see a similar dynamic happening with these 'new' tourists. While many of them might seem unsophisticated travellers now, they are part of a rising middle class which means eventually they will learn that sensitivity to locals, and anyone else for that matter, makes for a much more fulfilling holiday experience.

I notice more Chinese travelling in couples or families which says to me that they are becoming more adventurous about their travelling. It also means that they are going to spread the wealth around a bit more.

Edited March 21, 2013 by elsmido

[stevenl]

I don't experience and see the Russian wealth the article is talking about, but also, nowhere in the article does it meet the headline: why Phuket needs the Russians. It does meet the stereotype of the Russians though: ill mannered, even those with money.

There is one more line in the article that is important: "This, of course, is by no means all Russians. Some, like many of the

Chinese, do come on zero-dollar packages, with flights, accommodation, meals and tours prepaid, and spend little in the local market."

I wonder how the writer reached the conclusion 'some', because in my experience and from what I see this is a vast, vast majority of the Russians, not just 'some'.

Look at the average joe coming from Britain, Germany or anywhere else in Europe, coming to Phuket, they're also zero spending, sometimes ill mannered, tasteless, whatever.

Ill mannered, sometimes, but local spending a lot more.

Edited March 21, 2013 by stevenl

[stevenl]

If you look at the way western Europeans were when they first started travelling en masse, about 30-40 years ago, they generally travelled in groups, on charters or all-in trips. Aussies were the original 'backpackers'. Now every European kid has to take a 'gap' year to go and see the world.

You will probably see a similar dynamic happening with these 'new' tourists. While many of them might seem unsophisticated travellers now, they are part of a rising middle class which means eventually they will learn that sensitivity to locals, and anyone else for that matter, makes for a much more fulfilling holiday experience.

I notice more Chinese travelling in couples or families which says to me that they are becoming more adventurous about their travelling. It also means that they are going to spread the wealth around a bit more.

The backpackers come to a destination and develop it before the package tourists come. Also from Europe first the backpackers came before the package tourists. Plus there are from Europe, except from Scandinavia, not that many package tours to the region.

[Kitbaikitmah]

Could somebody please define a cheap-charlie from a thai buisness view point.

I have been called this when I declined a massage because I just didn't want one. Another time a thai bar-owner said this when he saw tourist buying beer from the next door 7-11.

I worry I am inadvently offending local sensibilities, please advise because if I don't have 20k in spare change then local people will not need (nor want) me here...very distressing in such a polite friendly and peaceful culture with people that smile so much

[robertson468]

My Wife owns eight rental houses and my Sister-in-Law owns seven. Over the last six months plus, they have been occupied nearly 100% by people from Russia. Our experience has been they are by and large thoroughly nice people and some of them exceptionally social and generous. We have also had Russians Residents for the last five years and again they have all been really nice. So far, touch wood, we have had no problems at all with Russian Residents. However, we have had problems with an Aussie, a Frenchman, a Dutchman and a Brit, which I suppose for seven years trading, is not too bad and issues have been resolved very easily - see picture of he who likes to visit houses of awkward resident!! Amazing how quickly the can pack, pay and get out`- would recommend a Great Dane as co-owner, it works a treat.

[KhunHehe]

Phuket the new Cyprus?

[stoffel45]

Is being 'anti-Russian tourist' racism?

Yes, it is.

My family must therefore be racist.

I will always check with a hotel what their Russians/Indians ratio of guests is. If it is above 40% we will not stay there. If there is a significant percentage of Russians or Indians we will leave.

WHY?

Two main reasons.

1. We have a very beautiful daughter who is 12 years old. Indian men, in majority those of low class, will follow the kid. No they don't touch and No they don't try to talk to her - they just come within 2 - 3 metres and they STARE intently. They will follow her and it is very disconcerting for her.

I speak to the Manager, but she tells me she already knows the problem - it is an Indian male thing, she explains. "Yes we get a lot of complaints but what can we do?"

Being a non-confrontational Thai - there IS nothing she can do. She said guests had called the Police who would just have a "Strong talk" with the starer and that feels better - for a few minutes.

So we leave and now we find apartments or houses to rent and we always check with Reception if there are a lot of Russians or Indians.

2. Russians. Very occasionally, one meets the educated Russian and that is fine.

Russians get drunk very easily - OK so do the Nordics. But when one is in a Restaurant and Russians are "Screaming Drunk", then brawling - it does little for the evening. I have visited Russia many times and they are not so "openly" badly behaved.

Accordingly - in contradiction of my first para - it is more the way people of low class behave whilst drunk - especially if they come from Russia - rather than racism.

[lavender19]

Reads more like an advatorial for real estate agents to me.

"Chinese, Russian and Australian visitors were the top spenders at leading shopping centres"

That seems pretty obvious if they are main tourist groups on Phuket.