Phuket tourism businesses face huge ‘collateral’ hikes

[rooster59]

Phuket tourism businesses face huge ‘collateral’ hikes

Chanida Summast

A spike in the complaints of tour companies involved in deaths, injuries or cheating of tourists has prompted the Tourism Business and Guide Registration Office to dramatically increase the ‘collateral’ deposits required from tourism businesses before the year’s end.

PHUKET: The security deposits required by the government from all tourism businesses will undergo huge rises following increasing complaints that the payouts made for tourism companies causing death, injury, cheating, defaulting on services or otherwise defrauding tourists are far outstripping the deposits held by the Department of Tourism.

The security deposits, called “Collateral”, are collected by the Bureau of Tourism Business and Guide Registration and will see sweeping increases introduced before the end of the year, said Pattara Lamultree, a legal official at the Tourism Business and Guide Registration Office in Phuket.

“All tourism businesses will be affected,” he said. “The new fees and amounts to be held as collateral were set at a meeting on July 14. They are expected to be ratified next month and brought into effect after a period of 120 days.”

Companies operating tours outbound from Thailand will see their collateral deposits rise from B200,000 to B2 million, while companies bringing tourists into Thailand will be required to submit B1 million as collateral instead of the B100,000 required now, Mr Pattara explained.

Companies operating domestic tours within Thailand will see their collateral deposits rise from B50,000 to B200,000, he added.

“Many companies have caused damage to tourism and we have to pay more,” Mr Pattara said. “For example, one company took a lot of bookings for tours to Japan, but the company shut down and the operators fled with the money.

Full story: http://www.thephuketnews.com/phuket-tourism-businesses-face-huge-collateral-hikes-58360.php#eDC0RrtaJmEI23ZE.97

-- Phuket News 2016-07-23

[clockman]

Hit them in the pocket, thats the only solution to any problem. There mantra is greed.

[taichiplanet]

probably a lot of the problems are with unregistered companies and guides.

The driver who crashed a bus and put several tourist in a Phuket hospital was fined THB 1000; make it 50k for the driver and 500k for the tour/bus company and they might think twice about hiring any Somchai to fill the job.

[blackcab]

probably a lot of the problems are with unregistered companies and guides.

The driver who crashed a bus and put several tourist in a Phuket hospital was fined THB 1000; make it 50k for the driver and 500k for the tour/bus company and they might think twice about hiring any Somchai to fill the job.

The problem is that they can only get Somchai to do the job. Nobody else will do the work for such a low wage.

[Jimi007]

Good idea! Drive the registered legal businesses out of business, then bitch about illegal guides and illegal tour companies. I'm sure this brilliant idea will work out well...

[eisfeld]

Doesn't change anything. What are 1-2M THB in security deposit for a tour company? I mean seriously, these companies own buses where one bus alone costs a multiple.

What is needed is clear strong laws about security practicies plus regular checkups and enforcement. That's most likely not gonna happen as most people would agree.

If you don't have the capital to either pay out for damages in cash nor have proper insurance, then you shouldn't be running such a business.

[NamKangMan]

They can raise the security deposits all they like, but Phuket has the highest road fatality statistics of any province in Thailand, due to proper public transport not being allowed to operate here.

This is Phuket's biggest killer, and main reason for Phuket's loss of a big segment of the western tourism market.

Once again, they refuse to address the real issue here, whilst making a press release designed to suggest otherwise.

[Oziex1]

There are some large amounts of money mentioned here as collateral deposits, but hey slip me, oh say half a mil in a brown paper envelope and all will be fine, know what I mean.

More opportunities for Thai business.

[Bob12345]

probably a lot of the problems are with unregistered companies and guides.

The driver who crashed a bus and put several tourist in a Phuket hospital was fined THB 1000; make it 50k for the driver and 500k for the tour/bus company and they might think twice about hiring any Somchai to fill the job.

The problem is that they can only get Somchai to do the job. Nobody else will do the work for such a low wage.

They can only get Somchai to do the job because there is no competition possible.

Open up the market for non-Phuket based tour companies and drivers and see how quickly the prices will drop.

Same with the taxi market, allow BKK taxi drivers to work on Phuket and they will take over the market within days with their lower prices and better service.

[shirtless]

Let western countries reciprocate the happiness to Thai businesses.

[NamKangMan]

probably a lot of the problems are with unregistered companies and guides.

The driver who crashed a bus and put several tourist in a Phuket hospital was fined THB 1000; make it 50k for the driver and 500k for the tour/bus company and they might think twice about hiring any Somchai to fill the job.

The problem is that they can only get Somchai to do the job. Nobody else will do the work for such a low wage.

They can only get Somchai to do the job because there is no competition possible.

Open up the market for non-Phuket based tour companies and drivers and see how quickly the prices will drop.

Same with the taxi market, allow BKK taxi drivers to work on Phuket and they will take over the market within days with their lower prices and better service.

"Same with the taxi market, allow BKK taxi drivers to work on Phuket and they will take over the market within days with their lower prices and better service." - not going to happen, despite the obvious need for change.

The Thai military has been in control for over 2 years, and they will not even touch the transport issue here.

What Phuket has now for transport, is all Phuket will ever have.

This is why Phuket is losing its independent western tourist market so rapidly.

[stevenl]

There are some large amounts of money mentioned here as collateral deposits, but hey slip me, oh say half a mil in a brown paper envelope and all will be fine, know what I mean.

More opportunities for Thai business.

Not possible, unless you think the bank gives out a bankbook with the new deposited amount

[Jambo]

Am i reading this correctly?

Dive companies who maybe have 5 customers everyday and follow PADI/SSI standards, pay PADI/SSI membership fees will have to pay 1,000,000 baht instead of 100,000 baht?

Thai/Chinese speedboat companies who have 100 customers everyday and illegally "tea bag" non certified divers with non certified dive masters/instructors will also have to pay the same price?

Sounds fair right enough!

Edited July 25, 2016 by Jambo

[stevenl]

I don't see this happening.

The cause of the rumours is the example mentioned by mr. Pattana, where a touroperator fled after having received the payments. What he did not say is that that tourcompany was illegal, in fact it was a former collegue from the Orbortor organising it via a Facebook page, swindelling the Orbortor collegues out of their money. The TAT felt compelled to pay, since they could not face up to the officials omitting to check the legality of the touragent.

This would impact many, many small Thai tourism businesses, who have no way of coming up with additional funds in an already difficult market.

[NamKangMan]

I don't see this happening.

The cause of the rumours is the example mentioned by mr. Pattana, where a touroperator fled after having received the payments. What he did not say is that that tourcompany was illegal, in fact it was a former collegue from the Orbortor organising it via a Facebook page, swindelling the Orbortor collegues out of their money. The TAT felt compelled to pay, since they could not face up to the officials omitting to check the legality of the touragent.

This would impact many, many small Thai tourism businesses, who have no way of coming up with additional funds in an already difficult market.

"I don't see this happening." - “All tourism businesses will be affected,” he said.“

"The new fees and amounts to be held as collateral were set at a meeting on July 14. They are expected to be ratified next month and brought into effect after a period of 120 days.” - sounds like all tourism businesses will see a rise in fees.

Edited July 27, 2016 by NamKangMan