Phuket yachties, marinas up in arms over new rules

[webfact]

Phuket yachties, marinas up in arms over new rules
Wiparatana Nathalang


Gorgeous boats at Royal Phuket Marina. But how many will head for Langkawi, taking their money with them?

PHUKET: -- New regulations governing yachts, introduced on December 26, have caused consternation and anger among yacht owners and skippers, and the island’s marinas.

Up until now, yachts were able to stay in Phuket for up to six months before the owner had to decide whether to take the boat out of Thai waters or import it (paying the taxes) and have it registered as a Thai boat.

The new regulation requires that owners or skippers must “re-register” their boats every two months for a maximum total of six months – and pay a fee each time. Already many yacht owners are saying that if this regulation is enforced they will be pulling up their anchors and heading for somewhere more yacht-friendly such as Langkawi in Malaysia.

Marinas, too, are aghast, fearing that they will lose as many as half of the boats currently using their facilities.

The new regulations and the fees have not yet been defined, but a public meeting is due to be held on Wednesday at the Customs office in Phuket Town to explain how the system will work and what it will cost. The Phuket News understands, however, that the fee will be a sliding scale linked to the size of the boat.

Any boat brought into Thai waters before December 26 will be “grandfathered” under the old rules, allowing boats to stay six months at a stretch, or until the skipper’s permit to stay expires.

Mert Ulusoy, general manager of the Royal Phuket Marina, said that although the details have yet to be revealed officially, “We believe that this will provide a truly exceptional opportunity for marinas in Langkawi to increase their prices substantially and make extraordinary profits – unless the decision is reversed.

“So we expect our business is going to go down and we expect that boats coming from places like Singapore for the six months of the high season will now stay for three months maximum and decide to go somewhere other than Thailand.”

The reasons for the new rules have yet to be explained, but Mr Ulusoy said, “I believe the Thai government officers are trying to get more boats to get Thai-flagged to allow them to control the boats in a way that they feel is more appropriate.

“At the moment boats in our marina are split about 50-50 between Thai-flag and foreign-flag boats. This ruling, if it goes ahead, will mean that we will lose a number of the foreign-flag boats to Langkawi. I don’t want to predict how many.”

A yacht owner, speaking on condition of anonymity, described the tightening of the rules as “absolutely crazy”.

“One thing they [Thai officials] don’t seem to understand is how much money yachties, especially superyachts, bring into Thailand.

“I pay mooring and electricity fees of B250,000 a year and another B60,000 to B70,000 a month for repairs and other work by Thai craftsmen.

“I was speaking recently with the skipper of a superyacht who spends B280,000 a month on mooring fees, another B750,000 a month on incidentals such as food for the crew and minor repairs, and about B1 million a year on major repairs.”

These, he pointed out, are the kind of sums the Thai economy stands to lose to Malaysia, multiplied by the number of boats in Phuket marinas that up-anchor and sail south out of Thai waters.

Source: http://www.thephuketnews.com/phuket-yachties-marinas-up-in-arms-over-new-rules-43954.php


-- Phuket News 2014-01-10

[Morakot]

Mr Ulusoy said, "I believe the Thai government officers are trying to get more boats to get Thai-flagged to allow them to control the boats in a way that they feel is more appropriate"

How are the officers feeling today after having taken one step forward? Two steps backwards?

Edited January 10, 2014 by Morakot

[Gulfsailor]

Bullocks. Why should one person legally register his boat in Thailand and pay the appropriate taxes while others don't and can stay as well. Btw. Taxes on a yacht are only VAT, which companies get credited. The only ones complaining about this new measure are the unregistered charter companies who Moore their boat in Thai waters, pick up their guests in Thailand and don't pay any income tax or VAT on their 'offshore' profit.

[clockman]

If i had that kind of money, why Phuket? Makes one think!

[jaapfries]

This is absolutely silly - and will certainly be to the detriment of the Thai yachting business. Indeed: 2 steps forwards, but 3 steps back . . . . .

Hopefully these "authorities" will come to their senses in time ! ! !

[MoonShadow]

This is absolutely silly - and will certainly be to the detriment of the Thai yachting business. Indeed: 2 steps forwards, but 3 steps back . . . . .

Hopefully these "authorities" will come to their senses in time ! ! !

No problem, my boat is Thai registered....

[brianP]

Afraid, we expats are going to be paying many more baht in the future as Thailand's taxes, tariffs and shakedowns are catching up with the west. Wealthy Thais know how to avoid taxation and apply it too.

[hansgruber]

Only up in arms because it's more costly for yachties.

Dust out the cobwebs in your wallets. It's time to pay the piper.

[jacko45k]

It is hard to drum up sympathy for someone who can afford a yacht and is avoiding paying taxes on it losing a loophole.

Off ya go to Langkawi then springs to mind!

Edited January 11, 2014 by jacko45k

[Ulic]

Bullocks. Why should one person legally register his boat in Thailand and pay the appropriate taxes while others don't and can stay as well. Btw. Taxes on a yacht are only VAT, which companies get credited. The only ones complaining about this new measure are the unregistered charter companies who Moore their boat in Thai waters, pick up their guests in Thailand and don't pay any income tax or VAT on their 'offshore' profit.

Not so sure, I had a friend who stopped by on his way around the world. Stayed 7-8 months.

Made repairs, new sails, lazy jacks, solar panels, etc... etc... Stayed in a hotel while there,

Probably spent 700-800 K while there. He was not involved in any yacht charter operation.

Probably would have stayed in Langkawi if these rules were in effect.

[12DrinkMore]

"“I was speaking recently with the skipper of a superyacht who spends B280,000 a month on mooring fees, another B750,000 a month on incidentals such as food for the crew and minor repairs, and about B1 million a year on major repairs.”"

Good Lord, it's cheaper than running a Thai GF.

[Merlindxb]

Well done! Head of Phuket Customs Chief Nanthita Sririkub, you are to be praised, Bangkok is over reacting.

We are not saying there may be Non-Thai registered vessels plying their business.

However, Compare the loss of Customs Duty!

Please do NOT do what was done to Thailand’s boat building industry; Phuket could have built a viable export business. That has been crippled by a poorly thought out Customs duties.

Visit any of Phuket Marina’s, where the owners have invested millions in building infrastructure.

Go to the slipways of Phuket fish Port. Where skilled Boatwright’s ply their trade. As an example: there is a 30-year-old wood sailboat here from Singapore; it has been totally re-planked from the rib’s up. The owner has spent Millions of Singapore dollars in Phuket, over the last year and it is still not finished, this example is repeated in every marina, in Phuket.

Boats with: termite’s infestation, wood damp rot, fibreglass osmosis, collision damage, electrical, Engine, prop shaft, sails.

Phuket is Port of choice by visitors who come to Phuket to have their boats hauled out, painted, repaired, and re-fitted.

Tasks like this are 100’s of man hours, material and replacement spares.

Phuket marine industries directly employ thousands of Thai workers. Take into account dependant industry. Phuket has Chandlers, engineers, welders, skilled boat Painters, woodwork’s, Stainless steel, etc., it adds up to a rich source of income for Phuket and Thailand.

It is keeping skills alive, supplying skilled tradesmen to the local boat building industry. Worldwide Government’s are investing in Marine industry collages.

Thailand, you have a fully functioning, self financed, Industry, which you will put into recession.

Currently Phuket is the only Port in the region where, you can get anything fixed.

However, it will take time.

It is worth repeating. This regulation will lead to the: The net loss of Customs Duty!

[IrishIvan]

So the yachties are up in arms about having to pay the correct taxes?

[Boatfreak]

don't be so narrowminded thousands of people's income (yes including mine and my wife's) are depending on those rich people who you said are avoiding paying taxes. The boat is a movable asset, to charge them toomuch tax and they will just mive their boats to Langkawi and all the jobs here will be lost to the greed of a few governerment officials. The tax money will not go to improving the marina facilities you know that. Do you have any idea how much income is made from the yachting industry without taxes? Yachting heaven such as Monaco make millions of Euros without taxing.

Sent from my GT-I9300 using Thaivisa Connect Thailand mobile app

[Zao]

Phuket will lose nothing to Langkawi.

Yes, the priority is the health of your industry and all related yachting businesses and workers. The taxes will cause more grumbling. The extra tax income will not be directly re-invested. But most - I will say all - owners will stay, and return.

The focus here is on charters. They know who they are. They will get hit, and be forced to pay up. They should pay up. In private, foreign owners who are not charters are fine with this. (That said, unfortunately, Jena may see a bit less of Mert! Sorry Mert!)

The reality is, Langkawi is a far less pleasant overall experience than Phuket, bottom line. Those that have some attraction there, are there in Langkawi already. Most of us have commitments, preferences, and long-term ties to Phuket, including some with condo's, that will not in the least be affected by the change in the fee regime.

Further, beyond Langkawi's marina's, for boats that anchor, it's nasty. 90% of the anchorages in and around Langkawi have a bottom of thick, rancid, stinking, clinging black mud - on par with a Koh Tao septic tank. Most yachts have a good chain and deck washdown system, but it's still unpleasant. On land and off, Langkawi is not nearly as welcoming.

What Phuket must really worry about are the new marina's being planned in the region outside of Thailand.

[Boatfreak]

but what about Pattaya?

Sent from my GT-I9300 using Thaivisa Connect Thailand mobile app

[bubblegum]

So the yachties are up in arms about having to pay the correct taxes?

Yachtie ever buy you a beer ?

[hansgruber]

So the yachties are up in arms about having to pay the correct taxes?

Yachtie ever buy you a beer ?

Hell frozen over yet?