"Zero Dollar" tours - why it's all about the money

[webfact]

 

"Zero Dollar" tours - why it's all about the money

 

Image: Thairath

 

BANGKOK: -- Hundreds of concerned tourism operators gathered in Bangkok yesterday as the issue of "Zero Dollar" tours was hashed out at a crisis meeting.

 

The practice refers to operators who offer under cost price trips to Thailand then allegedly charge hidden extras once tourists arrive and are taken to souvenir shops, restaurants and the like, reported Thairath.

 

The practice is linked to tax evasion and money laundering and the government wants to arrest anyone who is engaging in the practice that they say is having a serious effect on the economy of the country.

 

The state wants to get their hands back on the money from tourism that they say has been lost to unscrupulous operators breaking the law.

 

A large gathering of government and private sector representatives met at the Central Grand at Central World on Monday under the auspices of Kobkarn Wattanawarangul, sports and tourism minister, and head of the tourist police Surachet Hakpan.

 

The meeting comes as a mother and son who it is alleged ran one of the zero tour operations languish in jail. They are the owners of OA Transport who rented buses to hundred of other operators who have expressed fears that they are to be rounded up in the crackdown.

 

But Surachet allayed their fears saying that the police were going after only the big fish. He said that this involved cases against Fu An Travel, Chin Yuan Travel and OA Transport as well as four other companies under their umbrella.

 

He told the meeting that such companies were responsible for avoiding tax and siphoning off money that would be sent abroad and never benefit Thailand. Companies that operate legally and pay correct taxes need not worry he said. He cited one case where an unnamed company was doing 1000 million baht of business but paying only 100,000 baht in tax.

 

He said that companies under investigation had only Thai nominees and some had no Thai people working for them at all and were just laundering money.

 

He promised that after two weeks all would be revealed and resolved in the matter.

 

Some 386 companies who rented buses from OA Transport to move tourists around had earlier expressed concern that they were next on the chopping block. But Surachet said he did not know where they got that idea from.

 

He said the state were just going after "five or six companies" but he added that if there is evidence of wrong doing the full weight of the law will come down on them.

 

Meanwhile, the TAT has announced that as the issue is resolved a new swathe of regulations will be drafted to ensure that the quality and value for money offered to tourists will see standards increase.

 

The zero dollar business concentrates almost exclusively on group tours being offered to Chinese customers.

 

Source: Thairath

 

-- © Copyright Thai Visa News 2016-09-20

[mesterm]

Well, you wanted more business from the Chinese right?

[steveyinasia]

"The state wants to get their hands back on the money from tourism that they say has been lost to unscrupulous operators breaking the law."

This really states the true reason for going after these operators.

[hansnl]

13 minutes ago, mesterm said:

Well, you wanted more business from the Chinese right?

Note to the government, doing business with China always tends to be one-way traffic.

Keep that thought in your mind when talking about Chinese strategic railway lines through Thailand. No

 

[SOUTHERNSTAR]

And in the real world Chinese arrivals was 16% below target last month I wonder why ? But I even wonder more how they are going to reach there dream target for the next half of the year.

[williamgeorgeallen]

pretty sure this whole zero dollar tour thing has been turned around. zero dollar means everything has been paid for before leaving home. that money, at least part of it has to come to thailand to pay for the hotels and attractions visited. i suspect this is all coming from those not making their slice of the pie of the Chinese tourism industry. who cares if the Chinese tourists have to pay a bit more when they are here? doubt thailand is unhappy about that.

[elgordo38]

1 hour ago, mesterm said:

Well, you wanted more business from the Chinese right?

Not monkey business. The hammer really comes down hard when you try to beat the government out of a few bahts that gets their hackles up. Yes they are going after the big fish only the small fry have no money of any consequence. They will make a show case out of this for sure auction off buses the whole nine yards. Not so much in other cases that do not affect government revenue. 

[gdgbb]

1 hour ago, steveyinasia said:

"The state wants to get their hands back on the money from tourism that they say has been lost to unscrupulous operators breaking the law."

This really states the true reason for going after these operators.

 

Obviously, that's the point of the investigation, as the OP says.

[bark]

57 minutes ago, williamgeorgeallen said:

pretty sure this whole zero dollar tour thing has been turned around. zero dollar means everything has been paid for before leaving home. that money, at least part of it has to come to thailand to pay for the hotels and attractions visited. i suspect this is all coming from those not making their slice of the pie of the Chinese tourism industry. who cares if the Chinese tourists have to pay a bit more when they are here? doubt thailand is unhappy about that.

The cost of hotel rooms are discounted by 50 % ; but these are rooms that the hotel have empty anyway.

Then they hope they can make extra on internet etc.

Hotels are happy to get this.

[SOTIRIOS]

...duhh...what isn't 'all about the money' in this land....

[thurien]

2 hours ago, steveyinasia said:

"The state wants to get their hands back on the money from tourism that they say has been lost to unscrupulous operators breaking the law."

This really states the true reason for going after these operators.

 

 

This really states the true reason for going after these operators = of course, this is a very valid point for REVENUE and government, what's wrong with that?

[peterrabbit]

Another case of lack of brown envelopes on the right desks. 

[Yann55]

Quote : He cited one case where an unnamed company was doing 1000 million baht of business but paying only 100,000 baht in tax.

 

 

You don't say ...

[jacko45k]

Google have been doing this sort of thing for years.

[Dexlowe]

On 9/21/2016 at 8:32 AM, Yann55 said:

Quote : He cited one case where an unnamed company was doing 1000 million baht of business but paying only 100,000 baht in tax.

 

 

You don't say ...

Amazing that he knows this, but the Revenue Department doesn't -- or does and isn't bothered to take action.

 

Anyway, all goes to prove that the Chinese market is fraught with problems -- money siphoning, illegal operators, instant and exclusive "attractions" .... BTW, I wonder how things are in the White Temple in Chiang Rai these days. Are the special toilets dedicated to Chinese visitors doing the trick?

[Anthony5]

If they have taken OA travel out of business, then you can be assured the game is over, as they must have owned thousands of buses.

 

There is that other bus company, with the blue and purple lines on the bus that drives mainly Asian tourists, which have built a private gas station on road #36.

 

I wonder how much longer they gonna last