Thailand Elite Card

[midas]

I have always very skeptical about the true value of

the Thailand Elite Card and personally I would never

have paid that much money for one.

Bearing in mind this scheme was so heavily

influenced by " parties who have since departed

Thailand " with no guarantee it will continue to

receive the same backing, does anyone have any opinion

as to whether there has been a significant change

in the perceived value of the Thai Elite Card ?

My comments also apply to real estate.

In other words, how can you determine the accurate

value of property at this point in time where there is no constitution

in place - would have a significant effect on the value?

[jdinasia]

It is worth the same thing it was before ------ less than it costs.

[ovenman]

The Elite Card is something of an unknown. My own hunch is that the program will be quietly canceled (in terms of new card sales) without its chief cheerleader to support it. Hard to say what would happen to the benefits for existing card owners. Anything that doesn't actually cost future governments to maintain (e.g. the five-year visa) may well be retained.

I would not expect any significant effect on the price of real estate, even if the market slows. I have a hard time picturing Thai owners accepting one satang less for their property than they perceive it to be worth pre-coup. Behaviour post-1997 crash bears out this line of thinking.

[Meerkat]

This is what I received by way of reply from the TE service centre after asking how it would effect existing members:

Thank you very much for your email. Regarding to your question about the status of Thailand Elite Program, please rest assured that our company is a state enterprise. Any changes in government leader will not effect the company.

Due to the 9th order of The Council for Democratic Reform under Constitutional Monarchy,concerning about the foreign affairs, it is clearly mentioned that "For national benefits, CDRM will follow The Charter of The United Nations and continue other international agreements under a strict term of equality". Any contact that made with foreigners before the change could continue with no doubt.

Apparently, Thailand Elite Program is also included in above condition. Consequently, there will be no effect on existing membership.

We are thankful again for your query and should you need further clarification, please do not hesitate to let us know.

The web-site went down for a couple of days initially, but seems to be up and running again now. I've used them for a couple of things since the coup (golf, airport limo) with no difference from normal. I tend to agree with the poster above that it will be quietly dropped for new members; I doubt the 5 year visa will be revoked for existing ones, but I wouldn't be surprised to see an erosion of benefits.

I'll post here if I hear anything more on the subject.

[sriracha john]

This is what I received by way of reply from the TE service centre after asking how it would effect existing members:

Thank you very much for your email. Regarding to your question about the status of Thailand Elite Program, please rest assured that our company is a state enterprise. Any changes in government leader will not effect the company.

Issuing such an unequivocal statement is pure BS. Any new government can axe this "state enterprise" at any moment. Frankly, to rid itself of such an expensively net loss albatross would likely be one of the earlier projects a new government would scrutinize.

Due to the 9th order of The Council for Democratic Reform under Constitutional Monarchy,concerning about the foreign affairs, it is clearly mentioned that "For national benefits, CDRM will follow The Charter of The United Nations and continue other international agreements under a strict term of equality". Any contact that made with foreigners before the change could continue with no doubt.

More BS. To equate the Elite Card with any sort of UN international agreement is poppycock.

Apparently, Thailand Elite Program is also included in above condition. Consequently, there will be no effect on existing membership.

Apparently?? by whom?? The nervously twitching, ever-hopeful people at Thai Elite fearful of losing their positions?

Then to compound their highly speculative wishful thinking, they conclude that "consequently" there will be no change. Nothing like taking conjecture and speculation and turning into a definitive no other option conclusion...

We are thankful again for your query and should you need further clarification, please do not hesitate to let us know.

The web-site went down for a couple of days initially, but seems to be up and running again now. I've used them for a couple of things since the coup (golf, airport limo) with no difference from normal. I tend to agree with the poster above that it will be quietly dropped for new members; I doubt the 5 year visa will be revoked for existing ones, but I wouldn't be surprised to see an erosion of benefits.

I'll post here if I hear anything more on the subject.

The folks at Thai Elite sound even more desperate than usual.

[ovenman]

This is what I received by way of reply from the TE service centre after asking how it would effect existing members:

Thank you very much for your email. Regarding to your question about the status of Thailand Elite Program, please rest assured that our company is a state enterprise. Any changes in government leader will not effect the company.

That is a nonsensical conclusion being drawn on their part. Were the Elite Card a private enterprise, a change in government shouldn't have an effect on it. It being a state enterprise would seem to put it directly in the line of fire, or perhaps in a more apt sense, directly under an axe.

[Thaising]

The operations of the two tourism projects initiated under the Thaksin Shinawatra government, Thailand Elite Card and Thai Longstay, remain on track.

In fact, executives of the two ventures believe the outlook will brighten after the opening of Suvarnabhumi Airport, scheduled for this Thursday.

Pol Col Ruamnakorn Tubtimthongchai, the chief executive officer Thai Longstay Management Co (TLM), said there had been no change in the company's operation so far, but a plan to double registered capital to 200 million baht next year could be delayed.

Pol Col Ruamnakorn, who had close connections with Mr Thaksin, was selected to oversee the venture, which has progressed slowly since it was set up in 2003.

He holds 55% of the shares in TLM, while the Tourism Authority of Thailand (TAT) holds 30% and 50 small shareholders including tourism business associations hold the remaining 15%.

He said he intended to begin aggressive promotion of TLM on the day the new airport opened, with a goal to have 10,000 members a year from now.

"Tourists can apply as longstay members on Sept 28 as well," he said.

According to Pol Col Ruamnakorn, TLM had already prepared facilities to serve longstay tourists. The first group will be tourists from South Korea where the company plans a partnership with the credit-card company Visa.

TLM offers a wide ranges of privileges and one-stop services such as accident and health insurance, medical services, bank accounts and special care and attention by tourist police. Its main target group is retirees from developed countries who live on their pension funds.

The company plans to charge annual membership fees of between US$150 and $1,800, depending on the level of services. Members would instantly receive one-year visas on their arrival in Thailand.

Pol Col Ruamnakorn said that the coup would delay TLM's plan to raise registered capital as the TAT would need to seek permission from the new government to invest more money in the venture.

Meanwhile, Thailand Privilege Card Co (TPC), the issuer of the Thailand Elite Card, has informed its members that incentives and privileges offered under the card remain unchanged.

Elite Card membership, which costs one million baht, entitles holders to a wide range of lifetime services including fast-track immigration clearance as well as discounts on hotels, health care, golf facilities and other activities.

TPC president Choksiri Rodboonpha said the firm, a wholly-owned subsidiary of the TAT, had distributed an official statement from the Tourism and Sports Ministry to the 1,700 Elite Card members to clarify the current political and tourism situations and boost their confidence.

Bangkok Post

How can I trust that piece of plastic card with my million baht?

[ovenman]

In fact, executives of the two ventures believe the outlook will brighten after the opening of Suvarnabhumi Airport, scheduled for this Thursday.

Perhaps I am a bit slow on the uptake this morning but I'm really having a hard time understanding how the opening of a new airport might lead to the sale of even a single additional Elite Card. Somebody care to enlighten me?

[sriracha john]

an official statement from the Tourism and Sports Ministry to the 1,700 Elite Card members to

How can I trust that piece of plastic card with my million baht?

It's promising that the Elite Card is zeroing in on their stated goal for Card sales. A mere 998,300 more Cards and Thaksin will have reached his target... we should expect that to be reached within the next month or so.

[johnnyk]

It is worth the same thing it was before ------ less than it costs.

An accurate assessment...to the satang!

[lookpedkeeray]

I'll give you one Ronald McDonald Happy Meal Club card for two Thailand Elite cards. Trade?

[lookpedkeeray]

Note that I wasn't just being cute with that remark.

Last week's events show clearly that you cannot count on ANY investment or commitment to Thailand to hold up when laws, governments, policies and even the whole constitution can be thrown out on a relative whim.

I like Thailand more than any other place in the world, but last week's events were very enlightening to me personally. This is not a political/legal system where I can feasibly run a business, buy/lease land or raise my children. (Yes, I realize it never was that to begin with, but I personally only realized it last week.)

If I'd enjoy gambling then there's better places to do it.

Edited September 25, 2006 by lookpedkeeray

[midas]

I agree with your comments wholeheartedly Lookpedkeeray - you can still enjoy Thailand to the full

but I prefer to keep my assets in countries that have more transparent markets. It's not

so much whether I am accepting a lower return on capital its feeling more confident regarding a return OF capital.

Ovenman said regarding the second part of my question on real estate

" I would not expect any significant effect on the price of real estate, even if the market slows. I have a hard time picturing Thai owners accepting one satang less for their property than they perceive it to be worth pre-coup. Behaviour post-1997 crash bears out this line of thinking "[/i]

This is indeed how things seem to go here But that doesn't represent the true market - if people simply lock things up for years which they did after the 1997 crisis, it overlooks that for any asset to have a value it must generate a return be capable of generating a return - in the case of owner occupation it is a notional return.

As real estate is only a bundle of legal rights, I would certainly have thought the property market will be affected by this situation

[sriracha john]

I have always very skeptical about the true value of

the Thailand Elite Card and personally I would never

have paid that much money for one.

Bearing in mind this scheme was so heavily

influenced by " parties who have since departed

Thailand " with no guarantee it will continue to

receive the same backing, does anyone have any opinion

as to whether there has been a significant change

in the perceived value of the Thai Elite Card ?

My comments also apply to real estate.

In other words, how can you determine the accurate

value of property at this point in time where there is no constitution

in place - would have a significant effect on the value?

A lifetime Elite Card membership costs up to two million baht and entitles the holder to a range of privileges, including fast-track immigration clearance, multiple-entry visas and discounts at hotels, restaurants, spas, golf courses and more. Mr Thaksin had hoped to have one million Elite Card members within five years of its 2003 launch, but so far only 1,700 memberships have been sold.

Only 998,300 more cards to go to reach the psychotic goal...

The recent political changes have significantly hurt the business, said Paitoon Pongkesorn, the company's executive chairman. (the umpteenth chairman in the past 4 years)

''No new member applied in September, against 100 in the previous month,''she said. ''If the government wants to continue with the programme, it should send strong support to show the public it cares.''

oh well, people aren't even applying anymore for this dead horse... Perhaps it's finally time to bury this thing out back near the river.

http://www.bangkokpost.com/Business/19Oct2006_biz44.php

[naka]

The operations of the two tourism projects initiated under the Thaksin Shinawatra government, Thailand Elite Card and Thai Longstay, remain on track.

In fact, executives of the two ventures believe the outlook will brighten after the opening of Suvarnabhumi Airport, scheduled for this Thursday.

How can I trust that piece of plastic card with my million baht?

Ok. So exactly why will the new airport's opening brighten the outlook for this card ?

Wishful thinking as ever !

Naka.

Edited October 19, 2006 by naka

[CymruAmByth]

It is worth the same thing it was before ------ less than it costs.

Not true.

If you take advantage of the 38 lifetime golf club memberships that come with the card the 1m baht represents approximately 10% of the true value of this particular benefit.

Admittedly, the remaining benefits are not worth it, but that one is.

[midas]

CymruAmByth - your statement tends to confirm the limited potential market for the card.

You said " Admittedly, the remaining benefits are not worth it, but that one is."

-so are you saying the card is only of real value to golf enthusiasts ? As I am not one of those

I'm genuinely curious to know if it is truly worth spending one million baht

for golf membership ?

[bendix]

Given that it can cost over a million for life membership of prestige courses like Laem Chabang, then it is actually very good value for golfers. I've been looking a joining a course, but if this card provides lifetime membership for 38 courses, then i might need to take another look at it.

Cymru . . what courses are they? That seems extraordinarily generous to me.

Are you sure that's correct? Is there a link I can check it out on.

[midas]

bendix your comment is interesting to someone like me

who is definitely not a golfer !

But as sriracha john quite rightly pointed out earlier in this thread,

for the ongoing success and incentive for the card to continue,

surely it needs to be fed vast numbers of new subscribers ( sriracha john

mentioned 998,300 more Cards !! )- are there that many golfing

enthusiasts willing to pay one million baht?

My concern is that Thailand Elite card is a company that received a lot of

support at the time from the former Prime Minister and it is also a company

which received all the " investment " from subscribers upfront

- as opposed to annual subscriptions.

My main question is if the going got tough down the track- what incentive has

Thailand Elite to keep going now that the driving force

is no longer around ?

[Meerkat]

Well as I've said often before, you have to do a risk/reward calculation regarding both the value of the scheme assuming it carries on for a while (ie the value of the products) and also to take into account the likely probability it'll fold soon.

I don't think I'd go for it in the current political vacuum, and would wait for a few months to get a better idea of where the country is heading, but am happy so far with the service having already paid up. I freely put my hands up as well and say that when I was considering joining, my internal risk calculation was based upon TRT not being re-elected this month; the notion of a coup didn't even enter my head. Totally caught off-guard on that one!

Anyway, in the meantime I'm still very happy and still making good use of the perks. My first trip into Suvarnabhumi on Saturday was a case in point. That place was utter chaos, and being whisked through the maelstrom was a godsend.

I spoke to the TE escort there as to what she thought would happen, and whether she'd be looking for a new job soon (!), and she said that she was concerned initially, but the recent edict by the King that Thailand has to do more to better itself in the international community's eyes gave her comfort. Obviously she has a vested interest and will follow the "party-line", but I guess that's as good a response as you'll get at the moment.