Opening a small resort in sakaeo

[Piifo]

Hello,

 

I live with my Thai wife in a retired place in the sakaeo region, few farangs here, and soon we will buy land and build a house in the village. So, we will need something to do, and if we get some money out of it it's  a plus. 

My wish is, to buy about 6 rai of land ( rai here is about 50k bath), and in addition to my house to build 8 concrete bungalows, plus a swimming pool and restaurant for the customers.

The first question that came to my mind was, how would I make people come to my resort ?

I came up with some ideas, opening a Thai massage school program at the hotel(my Thai aunt said she could take care of that as she studied at the wat po ), painting classes ( my step sister is a professional painter in France ) and Thai cooking classes. we would also provide some massage, I will sell beer around the swimming pool, and buy a snooker.

The people that would come form the painting classes would be enrolled by my sister, and they could do painting in the morning and study massage in the afternoon.

I would need to buy a van to carry this people from/to suvarnabhumi and bring them around for the landscape painting classes as for touristic trips in the surroundings.

I would rent motorbikes and bicycles too.

And it's a nice place for dirt bike.

Talking about investment, I would pay 250k for each bungalow + 60k of furniture for each including airs.

The restaurant would be the Thai massage place too and would cost me about 400k.

Roughly 3 million bath for the resort, but buying a 3M condo in pattaya would make me 150k per year at most, it would be more like 100k....

I would need to buy a van too 1M.....

So I made my accountancy job, and calculated everything I could make from the resort, and, in OP in wonderland, I'd make 700k per year with a 25 % occupancy.

Dividing that digits per 2 makes 350k per year and seems more legit to me.

The place is called sai thong amphur khao chakan djangwat sakaeo for those who know.

 

Is this feasible reasonably ?

Edited March 25, 2017 by Piifo

[55Jay]

What happened to Chantaburi?  You need to be near the sea and said you would not move to Sakeo?  What changed?  More importantly, what changed your girlfriend now wife's mind?

 

Building a small business in the middle of nowhere is not a good idea.   Wise up.  Manage the inheritance money properly.  Do not be a young fool who's lost his fortune in the Thai countryside like so many other old fools have.  

[Piifo]

13 hours ago, 55Jay said:

What happened to Chantaburi?  You need to be near the sea and said you would not move to Sakeo?  What changed?  More importantly, what changed your girlfriend now wife's mind?

 

Building a small business in the middle of nowhere is not a good idea.   Wise up.  Manage the inheritance money properly.  Do not be a young fool who's lost his fortune in the Thai countryside like so many other old fools have.  

Hey,

What happened to chantaburi ? we went there for a couple of days and in my opinion it wasn't worth pattaya or jomtien for the services they provide, and in my wife's opinion it wasn't worth her village. we had to make a choice, my wife is as I would say a little bird that needed to get back the the family nest, and for me I wanted a place where we could stay without her thinking too much on where I was and who I was with. we visited many places, I liked hua hin for example but in the land of the couple we don't live in democracy. I don't say I don't like her village but I will need to do something to make my days and stay here.

I think a lot, maybe too much on what I could do here, a small gas station ( two automatic pumps )with a mini mart would be a smaller investment but would be hard to get benefits from. 

Taking care of a garden and reading stuff on thaivisa and on the rest of internet doesn't make my day.

If I have nothing to do on the long term my couple will be on trouble and I don't want that.

[steven100]

is it on a main highway ...  ?      if so,  thats a start otherwise forget it.

website booking offering special rates at certain times ?

with some local travel shops that provide tourist info ..   ?

promotion parties .,  ?

 

there are many things you can do but remember .....  many fail and are for sale.

[Piifo]

4 hours ago, backtofront said:

Start slowly, very slowly. First try one room. If you can attract enough visitors build the next one. But everything happens slowly and you will need enough capital to carry you though till the mango and papaya tress grow and start producing fruit.

 

I have just set up a domain (rather than a site) Unseen Thailand. I have got to market the sort of set up you have in mind. There is a dearth of information about roads that are less well travelled and that is not going to change overnight. But it is a gap in the market and if you are interested there is plenty you can do.

In starting a business the first thing you have to think of is the place, in second, the place and thirdly the place. I know that but I may don't consider it reasonably. So planting fruit trees with some veggies is the easiest option. But I don't want to stick to that.

[Piifo]

10 minutes ago, steven100 said:

is it on a main highway ...  ?      if so,  thats a start otherwise forget it.

website booking offering special rates at certain times ?

with some local travel shops that provide tourist info ..   ?

promotion parties .,  ?

 

there are many things you can do but remember .....  many fail and are for sale.

100% of hotels in the region except in aranyaprathet aren't working, there is an Italian restaurant on the 3x3 road near sakaeo, it isn't working. nothing works in this country except businesses for Thai people.

I am far from that main roads.

Edited March 26, 2017 by Piifo

[55Jay]

35 minutes ago, Piifo said:

Hey,

What happened to chantaburi ? we went there for a couple of days and in my opinion it wasn't worth pattaya or jomtien for the services they provide, and in my wife's opinion it wasn't worth her village. we had to make a choice, my wife is as I would say a little bird that needed to get back the the family nest, and for me I wanted a place where we could stay without her thinking too much on where I was and who I was with. we visited many places, I liked hua hin for example but in the land of the couple we don't live in democracy. I don't say I don't like her village but I will need to do something to make my days and stay here.

I think a lot, maybe too much on what I could do here, a small gas station ( two automatic pumps )with a mini mart would be a smaller investment but would be hard to get benefits from. 

Taking care of a garden and reading stuff on thaivisa and on the rest of internet doesn't make my day.

If I have nothing to do on the long term my couple will be on trouble and I don't want that.

If you read enough of ThaiVisa, and remove the "color" from the comments, it can be very instructive by learning from the mistakes of many before you who say the very same words as you are now.  They disregard their knowledge that they need more in life, be it activities or business to "keep them busy", but wind up in some dusty village in the middle of nowhere to placate their possessive/jealous minded Thai wife and her need to build security for herself and her family, using you as the means.  I'm not saying your wife is a bad person, I do not know her.  But the story is Xerox copy of 1,000 others before you. 

 

I was in your position before and had the same "good ideas" about doing this or that business just to "keep busy", buy land, etc...  I managed to let the feelings and "good ideas" pass with time, and lived a quiet 4 years in the countryside.  We have now moved closer to the city, in a rented house to be closer to our friends and social activities.   I don't regret the past 4 years, I do have a love for open space of big land, nice house, country life.... but not for rest of my life. 

 

Your idea can work but if you think you will be bored doing nothing, imagine you will be bored doing nothing because you have no customers.  So bored and also that sinking feeling that you've spent 3 million Baht with nothing to show for it except 6 Rai of land you don't own, with empty buildings that begin to decay, and you will eventually walk away from. 

 

In my case, I kept my money in the bank away from Thailand, where it produces monthly income.  My wife and I use that money to be free, travel inside Thailand and abroad, instead of being chained to a stationary, failing business in some dusty old village that you will grow tired and weary of in a few years. 

 

Be smart, don't let your mind and good ideas influence you to do something stupid.

 

Edit: Ah, I see your other posts now, seeing other businesses in your area as a sign of potential.  Do not ignore the obvious thinking you are smarter than them.   Good you have a brain and eyes, I hope you pay attention to what they show you. 

Edited March 26, 2017 by 55Jay

[Piifo]

7 minutes ago, 55Jay said:

If you read enough of ThaiVisa, and remove the "color" from the comments, it can be very instructive by learning from the mistakes of many before you who say the very same words as you are now.  They disregard their knowledge that they need more in life, be it activities or business to "keep them busy", but wind up in some dusty village in the middle of nowhere to placate their possessive/jealous minded Thai wife and her need to build security for herself and her family, using you as the means.  I'm not saying your wife is a bad person, I do not know her.  But the story is Xerox copy of 1,000 others before you. 

 

I was in your position before and had the same "good ideas" about doing this or that business just to "keep busy", buy land, etc...  I managed to let the feelings and "good ideas" pass with time, and lived a quiet 4 years in the countryside.  We have now moved closer to the city, in a rented house to be closer to our friends and social activities.   I don't regret the past 4 years, I do have a love for open space of big land, nice house, country life.... but not for rest of my life. 

 

Your idea can work but be aware that while everyone may seem full of energy and agree with your good ideas now, if it fails, they become bored and drift away, leaving your bank account smaller with nothing to show for it except 6 Rai of land you don't own, with empty buildings that begin to decay. 

 

In my case, I kept my money in the bank away from Thailand, where it produces monthly income.  My wife and I use that money to be free, travel inside Thailand and abroad, instead of being chained to a stationary business in some dusty old village that you will grow tired and weary of in a few years. 

 

Be smart, don't let your mind and good ideas influence you to do something stupid.

For the fact that I don't own the 6 rai but my wife and future cubs does isn't a problem.

If there is 8 close to collapse bungalows that attracted no one that is one of a problem.

Planting fruits that my wife and or relatives could sell on the market seems a better idea.

And yes, obviously I'm here because her family needs my money to make their life brighter.

I'm not willing to give them more than the food they need and building a resort would be a bad idea as all the income would go for Thai family purpose.

I guess I will stick with the fruit trees idea.

[CharlieH]

How to make 750k ? Start with 3 mil sounds perfect "thai" logic or in other words how to make a small fortune, start with a big one.

 

I dont know your area, but ask one simple question, other than your "resort" what is in or near you that people want to see or do ? If the answer is nothing, forget it, people wont travel just for you and your resort, it wont work. If there are other things in your area, then with correct marketing strategy it may work. (IMHO).

 

I would invest an amount of money in planting "teak" trees on the 6 rai, Leave them 10 yrs ideally 20 and harvest. Cost very little, low to no maitenance, huge return later. Invest the rest elsewhere safely.

Just a suggestion.

[55Jay]

Your previous idea about Chantaburi..... the current business ideas would be more feasible there.   As CharlieH said, you won't pull the number of customers you need up to some dusty village in Sakeo. 

 

Chantaburi has an existing flow of tourists as well as Thais getting away from BKK (et al) for the weekend.  It's not a seedy town like Pattaya and there are other resorts and venues there already.   For good reason, too.

 

[Piifo]

12 minutes ago, CharlieH said:

How to make 750k ? Start with 3 mil sounds perfect "thai" logic or in other words how to make a small fortune, start with a big one.

 

I dont know your area, but ask one simple question, other than your "resort" what is in or near you that people want to see or do ? If the answer is nothing, forget it, people wont travel just for you and your resort, it wont work. If there are other things in your area, then with correct marketing strategy it may work. (IMHO).

 

I would invest an amount of money in planting "teak" trees on the 6 rai, Leave them 10 yrs ideally 20 and harvest. Cost very little, low to no maitenance, huge return later. Invest the rest elsewhere safely.

Just a suggestion.

I have been thinking also about planting trees to sell them. little to take care, and no risk to be stolen, not like fruits or any kind of food.

[CharlieH]

Quality hardwood is expensive and will continue to rise in price ad time passes, so imagine how many trees on say 4 rai would produce ? Better proposition in my view.

[Piifo]

26 minutes ago, CharlieH said:

Quality hardwood is expensive and will continue to rise in price ad time passes, so imagine how many trees on say 4 rai would produce ? Better proposition in my view.

Best proposition so far as semi premium land in Chanthaburi is far too expensive.

Thank you.

[gomangosteen]

Hi, spent a year Songkran-to-Songkran 2009-10 in amphur Khao Chakan, mildly familiar with your area, near Phra Ploeng? 

Still visit occasionally... but any idea of an investment such as yours, my opinion, don't consider it.

Even if you were on the highway, be a dream to think people would want to stop there, the idea of collecting vanloads of tourists from Suvarnabhumi ... not going to happen.

Quote

My honest opinion, it's a dead-end tourist-wise. And that goes for all Sa Kaeo, people go through, don't stop, to Aranyaprathet/Poipet ...stop for food, gasoline and toilet maybe.

 

Commercial teak? Wrong climate in Sa Kaeo. And teak trees are often allowed to develop for 60 years or more before harvesting. 40-80 years common. Too dry.  Wrong soil type, wrong climate.

 

Quote

Teak grows best on deep, well-drained alluvial soils derived from limestone, schist, gneiss, shale (and some volcanic rocks, such as basalt. Conversely, the species performs very poorly, in terms of growth and stem form, on dry sandy soil, shallow soil (hard pan soil or lower water table soil), acidic soil (pH < 6.0) derived from laterite or peatbog, and on compacted or waterlogged soil (Kulkani, 1951; Kiatpraneet, 1974; Kaosa-ard, 1981; Bunyavejchewin, 1987; Srisuksai, 1991).

 

[Piifo]

I saw in different areas of the region eucalyptus tree plots.

And yes we are close to phra phlueng.

Edited March 26, 2017 by Piifo

[gomangosteen]

Yes, eucalyptus, my partner had 40 rai, eucs handle the poor soil and climate, grow fast, cut them to stump level, coppice second growth, stumps ripped out, start again. Low maintenance, and low return. Have done one complete rotation, two harvests. Now lease that land out for sugar, the lease fees are better, and no stress.

I spent a lot of my time with a farm advisor from The OrBorTor,  travel through district, local field days on crops, farm forestry and irrigation. Interesting to me, my NZ studies included sustainable forestry practice, vastly different in the Thai environment.

 

First harvest of eucs, sold for paper pulp

 

 

Edited March 26, 2017 by gomangosteen

[simon43]

Open a  noisy, all-night karaoke for the locals, with some short-time chalets nearby.  That would bring in more money than your OP idea :)

[Piifo]

7 minutes ago, simon43 said:

Open a  noisy, all-night karaoke for the locals, with some short-time chalets nearby.  That would bring in more money than your OP idea :)

Thai villagers don't need that much to lie down.