Hotels association wants control of tourist arrivals in Phuket

[thailiketoo]

If the hotel is empty the lease payment is still made. The company owning the hotel has a staff and they get paid and they spend money. Tourism is going down in Thailand; better a lease payment that is 100% sure thing than the ups and downs of tourism.

Same thing in many businesses. Better to service the bar than own the bar. All the tour company gets is a commission on services bought from Thais. The tour buses stop at PTT for gas and the Chinese stock up at the 7/11 store for travel.

Don't worry about the Thai people. They have been selling tours for a long time. They are doing fine.

"The tour buses stop at PTT for gas and the Chinese stock up at the 7/11 store for travel." - what sells more gas, 30 couples traveling in 30 different taxis or tuk-tuks, or 60 people traveling in one coach bus?

What makes more money - selling 60 meals in a restaurant, or selling 60 packets of instant noodles?

"Don't worry about the Thai people." - I don't. They are only reaping what they have sewn on Phuket.

"They have been selling tours for a long time." - never to package holiday makers, on such a grand scale here, as now.

"They are doing fine." - no, they are not, hence, complaints being made, which are in the article, that are the subject of this thread.

"The tour buses stop at PTT for gas and the Chinese stock up at the 7/11 store for travel." - what sells more gas, 30 couples traveling in 30 different taxis or tuk-tuks, or 60 people traveling in one coach bus?" The tour bus. Rich people fly into the resort and stay there.

What makes more money - selling 60 meals in a restaurant, or selling 60 packets of instant noodles? 60 packets of instant noodles. (Breakfast lunch and dinner are catered at Thai restaurants, noodles are for snacks.)

"They have been selling tours for a long time." - never to package holiday makers, on such a grand scale here, as now." The biggest package tour Thailand ever sold was R&R during the Vietnam war. 1965 to 1975.

"They are doing fine." - no, they are not, hence, complaints being made, which are in the article, that are the subject of this thread." The complaints are about too many tourists not too few. OP "The Southern Hotels Association has suggested that the number of tourists visiting Phuket in the future should be kept at an appropriate level to match with the capacity of accommodation."

[thailiketoo]

And offtopic but in the same vein can anyone explain how the sudden influx of currency exchange booths are making money? How could they possibly compete with the banks? But they have suddenly cropped up everywhere....

American dollars for Thai Baht? The ruble is worth nothing.....

With the amount of money each exchange is turning over I doubt they are making enough even with a "discount" from the banks.

Are you talking about Thailand? If so where is the new influx of exchange booths?

[RigPig]

The reality of it is that Thai owned hotels (3 to 6000 Baht a night) leased their hotels to Russian (and probably other) tour groups for 10 year periods. The money doesn't even come into Thailand anymore. I am sure the people staying in these hotels are not paying that sort of money for a room otherwise they wouldn't have to fill their bags up for the day at the breakfast buffet in the morning and top it up on banana pancakes and fruit while washing it down with a Chang from the 7/11......

So how are the hoteliers making a profit? Probably the same reason so many "money exchange" booths have cropped up, how can they compete with banks and make a profit? Me suspects these businesses are really laundromats in disguise

If the money is not coming into Thailand where does the lease payment go?

They most likely leased hotels that was going broke, thus, getting the lease for cheap - sure, that money stays here, unless the lease was bought off a foreigner, or a foreign company, in which case, this money may move away from Thailand as well.

Once they have the lease, the hotel is full, for the next 10 years, with Russian package holiday makers. The package holiday is selected and paid for in Russia, which includes many meals. The flights are selected and paid for in Russia. The flights, accommodation and meal money, stays in Russia - it never gets to Thailand.

Sure, some food and alcohol money, stays in Thailand, in the form of product production, but any profits from the sales of these will filter back to Russia as well, if consumed in the hotel, which many meals are.

Some staff salary stays in Thailand eg. hotel staff and coach bus driver, but that's about all that helps the local Phuket economy, and we have all heard about the many Russians working illeglly here, so they even try to minimise that.

That's why they call these tourists "zero baht tourists" because Thailand really sees minimal money from them. Most of the money stays in the country of origin of the holiday maker.

Now picture that for the next 10 years of the hotel lease, and you can imagine what Phuket will become, if it hasn't already.

100%

I moved a long time ago to Kata because of the clientele, the Scandinavians have gone, the quality restaurants have gone, the bars are empty (you can't do that scene with your GF hanging off your shoulder). The good times I moved here for are disappearing, but along with that the Thai economy appears to be struggling, at least at the grass roots level. Prices are increasing (250 Baht for a burger or sandwich at Sub Way, that's almost $10.00), there is an over supply of accommodation both rental and for purchase, but because these things were done in boom time no one will drop their prices, no one likes to loose money!

Yeah the Baht has stayed too high for too long (I can't work that one out), but the economy is changing and not for the better. People think things are cheap in Thailand, but seriously try to get something done with the same quality as back in your home country, it's actually more expensive. It is becoming a bit like living in a "dollar shop".

If they want to improve hotel accommodation and REAL profits, then they should take a long hard look at what is actually happening. The "Quality" tourists have left, why???

I have seen a resteraunt make itself look cheap and it worked they have more customers.

[RigPig]

And offtopic but in the same vein can anyone explain how the sudden influx of currency exchange booths are making money? How could they possibly compete with the banks? But they have suddenly cropped up everywhere....

American dollars for Thai Baht? The ruble is worth nothing.....

With the amount of money each exchange is turning over I doubt they are making enough even with a "discount" from the banks.

Are you talking about Thailand? If so where is the new influx of exchange booths?

I live in Kata, Phuket and they are now on every corner, just small maybe 2 metre by 2 metre booths just offering currency exchange.

[thailiketoo]

100%

I moved a long time ago to Kata because of the clientele, the Scandinavians have gone, the quality restaurants have gone, the bars are empty (you can't do that scene with your GF hanging off your shoulder). The good times I moved here for are disappearing, but along with that the Thai economy appears to be struggling, at least at the grass roots level. Prices are increasing (250 Baht for a burger or sandwich at Sub Way, that's almost $10.00), there is an over supply of accommodation both rental and for purchase, but because these things were done in boom time no one will drop their prices, no one likes to loose money!

Yeah the Baht has stayed too high for too long (I can't work that one out), but the economy is changing and not for the better. People think things are cheap in Thailand, but seriously try to get something done with the same quality as back in your home country, it's actually more expensive. It is becoming a bit like living in a "dollar shop".

If they want to improve hotel accommodation and REAL profits, then they should take a long hard look at what is actually happening. The "Quality" tourists have left, why???

I have seen a resteraunt make itself look cheap and it worked they have more customers.

The price of the baht is relative to another currency. The more people that want the baht vs dollar the more the baht goes up vs the dollar. I think the price of the baht is being kept low to help exports. Were it to go to its realistic level it would be around 25 to the US dollar.

[thailiketoo]

And offtopic but in the same vein can anyone explain how the sudden influx of currency exchange booths are making money? How could they possibly compete with the banks? But they have suddenly cropped up everywhere....

American dollars for Thai Baht? The ruble is worth nothing.....

With the amount of money each exchange is turning over I doubt they are making enough even with a "discount" from the banks.

Are you talking about Thailand? If so where is the new influx of exchange booths?

I live in Kata, Phuket and they are now on every corner, just small maybe 2 metre by 2 metre booths just offering currency exchange.

Have not seen it in Bangkok.

[RigPig]

100%

I moved a long time ago to Kata because of the clientele, the Scandinavians have gone, the quality restaurants have gone, the bars are empty (you can't do that scene with your GF hanging off your shoulder). The good times I moved here for are disappearing, but along with that the Thai economy appears to be struggling, at least at the grass roots level. Prices are increasing (250 Baht for a burger or sandwich at Sub Way, that's almost $10.00), there is an over supply of accommodation both rental and for purchase, but because these things were done in boom time no one will drop their prices, no one likes to loose money!

Yeah the Baht has stayed too high for too long (I can't work that one out), but the economy is changing and not for the better. People think things are cheap in Thailand, but seriously try to get something done with the same quality as back in your home country, it's actually more expensive. It is becoming a bit like living in a "dollar shop".

If they want to improve hotel accommodation and REAL profits, then they should take a long hard look at what is actually happening. The "Quality" tourists have left, why???

I have seen a resteraunt make itself look cheap and it worked they have more customers.

The price of the baht is relative to another currency. The more people that want the baht vs dollar the more the baht goes up vs the dollar. I think the price of the baht is being kept low to help exports. Were it to go to its realistic level it would be around 25 to the US dollar.

Yeah but why is the Baht so "wanted"? I can remember when i first came here it was around 48 to 42 to the dollar (I think) and everyone was happy, people were making money, tourists (including myself) were spending big. I personnally (and I am no economics whizz kid) think it is being manipulated on the foreign exchange for the benefit of "others".

But hey what do I know...

[KarenBravo]

The days of "manipulation" by governments are long gone. The free markets have much more money than any individual government.

This has been proved time and again. For example Sterling in the early nineties and Baht in 1997.

The Baht remains strong as Thailand's exports have strong sales and the unemployment rate is presently 0.6%.

[thailiketoo]

The price of the baht is relative to another currency. The more people that want the baht vs dollar the more the baht goes up vs the dollar. I think the price of the baht is being kept low to help exports. Were it to go to its realistic level it would be around 25 to the US dollar.

Yeah but why is the Baht so "wanted"? I can remember when i first came here it was around 48 to 42 to the dollar (I think) and everyone was happy, people were making money, tourists (including myself) were spending big. I personnally (and I am no economics whizz kid) think it is being manipulated on the foreign exchange for the benefit of "others".

But hey what do I know...

I think the powers that be have decided that 32 or 33 to the US dollar is the sweet spot that befits both imports and exports. The bank of Thailand has enough foreign reserves to withstand any attack to change those parameters. Same as the bank of Switzerland.

[thailiketoo]

The days of "manipulation" by governments are long gone. The free markets have much more money than any individual government.

This has been proved time and again. For example Sterling in the early nineties and Baht in 1997.

The Baht remains strong as Thailand's exports have strong sales and the unemployment rate is presently 0.6%.

2012

The Swiss central bank’s foreign- currency reserves surged to a record in May as the euro region’s increasing turmoil forced policy makers to step up their defense of the franc floor.

Currency holdings rose to 303.8 billion Swiss francs ($318 billion) from 237.6 billion francs in April, according to a statement published on the Swiss National Bank’s website today. Walter Meier, a spokesman at the SNB in Zurich, said a “large part” of the increase was due to currency purchases to defend the minimum exchange rate of 1.20 francs per euro.

http://www.bloomberg.com/news/2012-06-07/snd-foreign-currency-holdings-hit-record-on-intervention.html

2011

THEY DID IT: Swiss National Bank Makes Epic Intervention Move, Sending The Swiss Franc Plunging

http://www.businessinsider.com/wow-swiss-national-bank-takes-intervention-to-a-new-level-franc-plunges-2011-9

Edited October 25, 2014 by thailiketoo

[KarenBravo]

If their is a valid reason to defend the currency, then the markets see that and don't interfere. It's when it is unjustified that the markets smell blood and call the bluff.

Even Switzerland doesn't have more money than the markets.

[LivinginKata]

I live in Kata, Phuket and they are now on every corner, just small maybe 2 metre by 2 metre booths just offering currency exchange.

Yes, there ae quite a number of small booths these days. They all make a small margin, something like 1%, and hope to turnround quickly to keep their seed Baht topped up. Various outfits call round 2 times a day, collect the f/x and hand back baht.

We know a guy in Kata that does this, if he exchanges 200,000 baht/day he makes 2,000 baht less his booth expenses.

[thailiketoo]

If their is a valid reason to defend the currency, then the markets see that and don't interfere. It's when it is unjustified that the markets smell blood and call the bluff.

Even Switzerland doesn't have more money than the markets.

So the markets are moral and don't interfere if the government has a good reason to defend the currency. You gotta be kidding me. The Swiss were defending the price of exports nothing beyond a profit motive of Switzerland vs competition. They were trying to stack the deck. The same thing China does every day. You think the Chinese currency floats depending on market demand?

[Thai at Heart]

So this Mr Krisda Tansakul representing the Hotels association, apparently only 4 and 5 star hotels are allowed in it, wants his high profit margin back but is not willing to put forth a service to justify farang's spending more? Instead they want to regulate the number of tourists to Phuket to only high spending that stay in the hotels in his association? Well sounds like the good people of Phuket going to lose a lot of tourism money when you want to exclude probably at least 70 percent of the tourists that travel to this destination. I wonder if this is the same idiot that thought it would be a good idea to issue id bracelet's to tourists and proposed it to Thailand Tourism Minister Kobkarn Wattanavrangkul?

What does he think a 4 star hotel is worth?

If he restricts visitors does he reckon they will all instantly pay his.premium or not visit at all?

He is a dumbass

[Thai at Heart]

100%

I moved a long time ago to Kata because of the clientele, the Scandinavians have gone, the quality restaurants have gone, the bars are empty (you can't do that scene with your GF hanging off your shoulder). The good times I moved here for are disappearing, but along with that the Thai economy appears to be struggling, at least at the grass roots level. Prices are increasing (250 Baht for a burger or sandwich at Sub Way, that's almost $10.00), there is an over supply of accommodation both rental and for purchase, but because these things were done in boom time no one will drop their prices, no one likes to loose money!

Yeah the Baht has stayed too high for too long (I can't work that one out), but the economy is changing and not for the better. People think things are cheap in Thailand, but seriously try to get something done with the same quality as back in your home country, it's actually more expensive. It is becoming a bit like living in a "dollar shop".

If they want to improve hotel accommodation and REAL profits, then they should take a long hard look at what is actually happening. The "Quality" tourists have left, why???

I have seen a resteraunt make itself look cheap and it worked they have more customers.

The price of the baht is relative to another currency. The more people that want the baht vs dollar the more the baht goes up vs the dollar. I think the price of the baht is being kept low to help exports. Were it to go to its realistic level it would be around 25 to the US dollar.

Yeah but why is the Baht so "wanted"? I can remember when i first came here it was around 48 to 42 to the dollar (I think) and everyone was happy, people were making money, tourists (including myself) were spending big. I personnally (and I am no economics whizz kid) think it is being manipulated on the foreign exchange for the benefit of "others".

But hey what do I know...

It is not a one way street.

Why is the USD so unwanted? 0.5% interest and a booming deficit.

Baht 2% interest and debt to GDP of under 50%

Be happy they keep up the coup and protest cycles or it might be worth 25

[RigPig]

100%

I moved a long time ago to Kata because of the clientele, the Scandinavians have gone, the quality restaurants have gone, the bars are empty (you can't do that scene with your GF hanging off your shoulder). The good times I moved here for are disappearing, but along with that the Thai economy appears to be struggling, at least at the grass roots level. Prices are increasing (250 Baht for a burger or sandwich at Sub Way, that's almost $10.00), there is an over supply of accommodation both rental and for purchase, but because these things were done in boom time no one will drop their prices, no one likes to loose money!

Yeah the Baht has stayed too high for too long (I can't work that one out), but the economy is changing and not for the better. People think things are cheap in Thailand, but seriously try to get something done with the same quality as back in your home country, it's actually more expensive. It is becoming a bit like living in a "dollar shop".

If they want to improve hotel accommodation and REAL profits, then they should take a long hard look at what is actually happening. The "Quality" tourists have left, why???

I have seen a resteraunt make itself look cheap and it worked they have more customers.

The price of the baht is relative to another currency. The more people that want the baht vs dollar the more the baht goes up vs the dollar. I think the price of the baht is being kept low to help exports. Were it to go to its realistic level it would be around 25 to the US dollar.

Yeah but why is the Baht so "wanted"? I can remember when i first came here it was around 48 to 42 to the dollar (I think) and everyone was happy, people were making money, tourists (including myself) were spending big. I personnally (and I am no economics whizz kid) think it is being manipulated on the foreign exchange for the benefit of "others".

But hey what do I know...

It is not a one way street.

Why is the USD so unwanted? 0.5% interest and a booming deficit.

Baht 2% interest and debt to GDP of under 50%

Be happy they keep up the coup and protest cycles or it might be worth 25

Hmmmm maybe to some extent, but the value against the GBP, AUD and other currencies hasn't changed much either over the last ten years or so.

As for the coup, well I believe in democracy, it's not perfect by any stretch, but it should be (or at least perceived to be) the peoples choice. I can't vote here so it doesn't matter..............

[RigPig]

The days of "manipulation" by governments are long gone. The free markets have much more money than any individual government.

This has been proved time and again. For example Sterling in the early nineties and Baht in 1997.

The Baht remains strong as Thailand's exports have strong sales and the unemployment rate is presently 0.6%.

2012

The Swiss central bank’s foreign- currency reserves surged to a record in May as the euro region’s increasing turmoil forced policy makers to step up their defense of the franc floor.

Currency holdings rose to 303.8 billion Swiss francs ($318 billion) from 237.6 billion francs in April, according to a statement published on the Swiss National Bank’s website today. Walter Meier, a spokesman at the SNB in Zurich, said a “large part” of the increase was due to currency purchases to defend the minimum exchange rate of 1.20 francs per euro.

http://www.bloomberg.com/news/2012-06-07/snd-foreign-currency-holdings-hit-record-on-intervention.html

2011

THEY DID IT: Swiss National Bank Makes Epic Intervention Move, Sending The Swiss Franc Plunging

http://www.businessinsider.com/wow-swiss-national-bank-takes-intervention-to-a-new-level-franc-plunges-2011-9

So government's manipulate the value of their currency, (surprise) for reasons that we will never know, maybe to benefit those with money and have enough invested overseas to benefit themselves......

NO I don't believe it

[thailiketoo]

Hmmmm maybe to some extent, but the value against the GBP, AUD and other currencies hasn't changed much either over the last ten years or so.

As for the coup, well I believe in democracy, it's not perfect by any stretch, but it should be (or at least perceived to be) the peoples choice. I can't vote here so it doesn't matter..............

You call 70 to 50 baht not much change? What would you call a big move?

[RigPig]

I live in Kata, Phuket and they are now on every corner, just small maybe 2 metre by 2 metre booths just offering currency exchange.

Yes, there ae quite a number of small booths these days. They all make a small margin, something like 1%, and hope to turnround quickly to keep their seed Baht topped up. Various outfits call round 2 times a day, collect the f/x and hand back baht.

We know a guy in Kata that does this, if he exchanges 200,000 baht/day he makes 2,000 baht less his booth expenses.

Interesting...

1% is actually a large profit margin for something like this, where does he trade the money / who to? It couldn't possibly be the banks, so who else is trading the cash?

Shear curiosity...

[RigPig]

Hmmmm maybe to some extent, but the value against the GBP, AUD and other currencies hasn't changed much either over the last ten years or so.

As for the coup, well I believe in democracy, it's not perfect by any stretch, but it should be (or at least perceived to be) the peoples choice. I can't vote here so it doesn't matter..............

You call 70 to 50 baht not much change? What would you call a big move?

I admit this isn't my forte, but I am just saying what I have perceived. I don't think there has been much change in the last 5 years at least in any currency exchange. I get paid in U.S. dollars so I suppose that is the most relevant to me

[thailiketoo]

The days of "manipulation" by governments are long gone. The free markets have much more money than any individual government.

This has been proved time and again. For example Sterling in the early nineties and Baht in 1997.

The Baht remains strong as Thailand's exports have strong sales and the unemployment rate is presently 0.6%.

2012

The Swiss central bank’s foreign- currency reserves surged to a record in May as the euro region’s increasing turmoil forced policy makers to step up their defense of the franc floor.

Currency holdings rose to 303.8 billion Swiss francs ($318 billion) from 237.6 billion francs in April, according to a statement published on the Swiss National Bank’s website today. Walter Meier, a spokesman at the SNB in Zurich, said a “large part” of the increase was due to currency purchases to defend the minimum exchange rate of 1.20 francs per euro.

http://www.bloomberg.com/news/2012-06-07/snd-foreign-currency-holdings-hit-record-on-intervention.html

2011

THEY DID IT: Swiss National Bank Makes Epic Intervention Move, Sending The Swiss Franc Plunging

http://www.businessinsider.com/wow-swiss-national-bank-takes-intervention-to-a-new-level-franc-plunges-2011-9

So government's manipulate the value of their currency, (surprise) for reasons that we will never know, maybe to benefit those with money and have enough invested overseas to benefit themselves......

NO I don't believe it

http://www.snb.ch/en/mmr/reference/pre_20110906/source/pre_20110906.en.pdf

Above is the Swiss National bank press release stating they will set a minimum exchange rate of 1.20 per Euro.

The Swiss National Bank (SNB) is therefore aiming for a substantial and sustained

weakening of the Swiss franc. With immediate effect, it will no longer tolerate a EUR/CHF

exchange rate below the minimum rate of CHF 1.20. The SNB will enforce this minimum

rate with the utmost determination and is prepared to buy foreign currency in unlimited

quantities.

I don't know how else to tell you but above is the official bank press release telling the world they will manipulate their currency with buying foreign currency in unlimited quantities.

Edited October 25, 2014 by thailiketoo

[thailiketoo]

Hmmmm maybe to some extent, but the value against the GBP, AUD and other currencies hasn't changed much either over the last ten years or so.

As for the coup, well I believe in democracy, it's not perfect by any stretch, but it should be (or at least perceived to be) the peoples choice. I can't vote here so it doesn't matter..............

You call 70 to 50 baht not much change? What would you call a big move?

I admit this isn't my forte, but I am just saying what I have perceived. I don't think there has been much change in the last 5 years at least in any currency exchange. I get paid in U.S. dollars so I suppose that is the most relevant to me

GBP 2008 65 baht 2014 52 baht that is a giant move. You perceived wrong.

[LivinginKata]

Yes, there ae quite a number of small booths these days. They all make a small margin, something like 1%, and hope to turnround quickly to keep their seed Baht topped up. Various outfits call round 2 times a day, collect the f/x and hand back baht.

We know a guy in Kata that does this, if he exchanges 200,000 baht/day he makes 2,000 baht less his booth expenses.

Interesting...

1% is actually a large profit margin for something like this, where does he trade the money / who to? It couldn't possibly be the banks, so who else is trading the cash?

Shear curiosity...

No not the banks. He phones a number and tells them how much foreign currency he has taken in, they send round a motorbike with the baht value and pick up the f/x. It a big business with lots of these booths now trading. Clearly some one want a lot of f/x ???

[RigPig]

Yes, there ae quite a number of small booths these days. They all make a small margin, something like 1%, and hope to turnround quickly to keep their seed Baht topped up. Various outfits call round 2 times a day, collect the f/x and hand back baht.

We know a guy in Kata that does this, if he exchanges 200,000 baht/day he makes 2,000 baht less his booth expenses.

Interesting...

1% is actually a large profit margin for something like this, where does he trade the money / who to? It couldn't possibly be the banks, so who else is trading the cash?

Shear curiosity...

No not the banks. He phones a number and tells them how much foreign currency he has taken in, they send round a motorbike with the baht value and pick up the f/x. It a big business with lots of these booths now trading. Clearly some one want a lot of f/x ???

Yeah, the question is (just curiosity) who and why? ....

[RigPig]

Hmmmm maybe to some extent, but the value against the GBP, AUD and other currencies hasn't changed much either over the last ten years or so.

As for the coup, well I believe in democracy, it's not perfect by any stretch, but it should be (or at least perceived to be) the peoples choice. I can't vote here so it doesn't matter..............

You call 70 to 50 baht not much change? What would you call a big move?

I admit this isn't my forte, but I am just saying what I have perceived. I don't think there has been much change in the last 5 years at least in any currency exchange. I get paid in U.S. dollars so I suppose that is the most relevant to me

GBP 2008 65 baht 2014 52 baht that is a giant move. You perceived wrong.

Fair enough, as I said I get paid in U.S. dollars, so what does this mean? Someone is manipulating the Baht against U.S. currency? Sorry but as I said this is not my forte, and I am curious.

[KarenBravo]

The days of "manipulation" by governments are long gone. The free markets have much more money than any individual government.

This has been proved time and again. For example Sterling in the early nineties and Baht in 1997.

The Baht remains strong as Thailand's exports have strong sales and the unemployment rate is presently 0.6%.

2012

The Swiss central bank’s foreign- currency reserves surged to a record in May as the euro region’s increasing turmoil forced policy makers to step up their defense of the franc floor.

Currency holdings rose to 303.8 billion Swiss francs ($318 billion) from 237.6 billion francs in April, according to a statement published on the Swiss National Bank’s website today. Walter Meier, a spokesman at the SNB in Zurich, said a “large part” of the increase was due to currency purchases to defend the minimum exchange rate of 1.20 francs per euro.

http://www.bloomberg.com/news/2012-06-07/snd-foreign-currency-holdings-hit-record-on-intervention.html

2011

THEY DID IT: Swiss National Bank Makes Epic Intervention Move, Sending The Swiss Franc Plunging

http://www.businessinsider.com/wow-swiss-national-bank-takes-intervention-to-a-new-level-franc-plunges-2011-9

So government's manipulate the value of their currency, (surprise) for reasons that we will never know, maybe to benefit those with money and have enough invested overseas to benefit themselves......

NO I don't believe it

http://www.snb.ch/en/mmr/reference/pre_20110906/source/pre_20110906.en.pdf

Above is the Swiss National bank press release stating they will set a minimum exchange rate of 1.20 per Euro.

The Swiss National Bank (SNB) is therefore aiming for a substantial and sustained

weakening of the Swiss franc. With immediate effect, it will no longer tolerate a EUR/CHF

exchange rate below the minimum rate of CHF 1.20. The SNB will enforce this minimum

rate with the utmost determination and is prepared to buy foreign currency in unlimited

quantities.

I don't know how else to tell you but above is the official bank press release telling the world they will manipulate their currency with buying foreign currency in unlimited quantities.

Maybe keeping a currency weak is easier than keeping a currency strong. You can't deny that the governments of the UK and Thailand tried and failed their objective and were defeated by the sheer size of the market that went against them.

[LivinginKata]

Fair enough, as I said I get paid in U.S. dollars, so what does this mean? Someone is manipulating the Baht against U.S. currency? Sorry but as I said this is not my forte, and I am curious.

Someone is always 'manipulating' world currencies. Soros (fund manager) ruined the Thai Baht in about 1998 (in 1996 pound/baht was 36, by 1999 was 90 baht) and before that the UK pound was ruined by the same Soros. But this is all off the initial topic about Phuket Hotel association.

[RigPig]

Fair enough, as I said I get paid in U.S. dollars, so what does this mean? Someone is manipulating the Baht against U.S. currency? Sorry but as I said this is not my forte, and I am curious.

Someone is always 'manipulating' world currencies. Soros (fund manager) ruined the Thai Baht in about 1998 (in 1996 pound/baht was 36, by 1999 was 90 baht) and before that the UK pound was ruined by the same Soros. But this is all off the initial topic about Phuket Hotel association.

Yeah it's easy to go off on a tangent, it wasn't my intention to "hijack" the thread, but interesting replies all the same.....

[madmitch]

Yes, there ae quite a number of small booths these days. They all make a small margin, something like 1%, and hope to turnround quickly to keep their seed Baht topped up. Various outfits call round 2 times a day, collect the f/x and hand back baht.

We know a guy in Kata that does this, if he exchanges 200,000 baht/day he makes 2,000 baht less his booth expenses.

Interesting...

1% is actually a large profit margin for something like this, where does he trade the money / who to? It couldn't possibly be the banks, so who else is trading the cash?

Shear curiosity...

No not the banks. He phones a number and tells them how much foreign currency he has taken in, they send round a motorbike with the baht value and pick up the f/x. It a big business with lots of these booths now trading. Clearly some one want a lot of f/x ???

Yeah, the question is (just curiosity) who and why? ....

Don't forget the Thai small business model: if one person is making some money doing something then others want a piece of the action, therefore one small booth opens, someone thinks it must be a good idea and immediately sets up a copycat booth and it then escalates. It's no different to the fruit sellers on the highways. Of course all it does is to dissipate the profit.

I know one lady that set up a booth but was closed down within a very short time for operating without a licence. She received quite a hefty fine, certainly well above any profit she might have made.

[Yahooka]

Quality tourism ?? I`m afraid that in Phukets case that train left many years ago.Quality tourists doesn`t want to pay big money for traffic jams,pollution and constant rip offs.Places that attracts those kind of visitor doesn`t allow unrestricted development,that in the end destroys everything that the place was once known for.