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Posted

When this thread started (over three years ago) the title was a little sensationalist and over-dramatic - events have now unfolded in such a way that fiction has become fact!

 

Yesterday Singapore Airlines/Silk Air cancelled my December>March trip (surprise, surprise) and, after ten winter months over the last six years, I have given up on Thailand and shifted my attention to the Caribbean or South America.

 

I don't believe that Thailand will open up to regular international tourists until there is a generally available vaccine, assuming that there is such a thing in the pipeline somewhere, and I really can't blame them.

 

Patong is indeed dead and I don't believe it will ever recover to it's (already poor) 2019 levels - the infrastructure will literally crumble in the tropical heat and humidity if there is no money to maintain it.

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Posted
On 10/7/2020 at 5:52 PM, London Lowf said:

When this thread started (over three years ago) the title was a little sensationalist and over-dramatic - events have now unfolded in such a way that fiction has become fact!

 

Yesterday Singapore Airlines/Silk Air cancelled my December>March trip (surprise, surprise) and, after ten winter months over the last six years, I have given up on Thailand and shifted my attention to the Caribbean or South America.

 

I don't believe that Thailand will open up to regular international tourists until there is a generally available vaccine, assuming that there is such a thing in the pipeline somewhere, and I really can't blame them.

 

Patong is indeed dead and I don't believe it will ever recover to it's (already poor) 2019 levels - the infrastructure will literally crumble in the tropical heat and humidity if there is no money to maintain it.

I don't believe that Thailand will open up to regular international tourists until there is a generally available vaccine, assuming that there is such a thing in the pipeline somewhere, and I really can't blame them.”

 

The issue of international tourists being able to go to Lalaland is a more complex issue than Somchai High Command issuing the command to open the trap door and allow international mongers tourists back in at this present time. The Chinese on the other hand would come even if the whole island was buried under 2 meters of Buffalo pooh.

 

“Patong is indeed dead and I don't believe it will ever recover to it's (already poor) 2019 levels - the infrastructure will literally crumble in the tropical heat and humidity if there is no money to maintain it.”

 

Regarding the subject of infrastructure; the supply of potable water and treatment of surface/waste water must be maintained at all costs for public health and safety, lest malaria/cholera get a foothold. Conversely, with less strain on the existing sewer networks due to less tourists in the main areas that cater for such, the network would be unlikely to ’crumble’ too quickly. Can’t see they would fail to maintain the treatment plant in Patong either, but then again...

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Posted
17 hours ago, billythehat said:

but then again...

But then again, nothing surprises me in Patong any more and I only hope that the drains that they are digging up again and stuffing around with, is an effort to improve them, rather than because they are crumbling.

 

As I said nothing surprises me, although one or two new shops have opened up around the place and I suppose these people are taking a long-term punt, although I did hear rumours that they were a few people around, who had money, and were looking for bargains?

 

Maybe there are, or maybe there aren't, however I do know that there are folks out there who are willing to sell at a reduced price, and indeed a lady friend of mine has just sold her Toyota Yaris, with just 29,000 km on the clock, for 270,000 baht, and in the end it was a desperation sale.

 

On the other hand, another friend of mine has one rai of prime land (with chanote), with a sea view, near Kata which could be a great spot for a huge villa, or apartments, or indeed two or three villas, if bought by a developer, but no one seems to be beating a path to his door as yet, so maybe there isn't that much spare money around and what I heard were just unfounded rumours??

 

A friend who went out on Monday night to celebrate a Thai lady's birthday was shocked at the lack of people in Bangla, and did tell me that the largest bar in the street is now only going to be open on weekends (including Friday I think) whilst another bar owner has thrown in the towel because the landlord wants the key money upfront now, and it is in the millions of baht, so that becomes a "no-go" situation (I suppose the landlords are wealthy enough not to have to worry??).

 

Not going to get better any time soon, even if jet loads of Chinese arrive here, not that they would be welcomed by everybody.........
 

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Posted
14 hours ago, LivinginKata said:

Ok so I will pop my head up and comment. Our rental homes are not making any income. We have plenty tenants but they can't pay rent as in the entertainment sector. They just manage pay electric charges. Given we own our properties then our maintenance and on costs are low. As it happens I have some pension money that keeps us afloat.  I expect we need to eat into our savings to pay the bigger insurance bills like medical.

 

I don't expect any regular paying guests until late 2021. Very bleak for everyone with a small business.

We all pay our condo rent in full in our building, even one on annual contract who can't get back pays it as normal, I only manage to go to low season rent after June...!

 

Where are you, I maybe can move into your building... ????, not sure who your renters are, Thai or foreign, but surely they can't just stay on and on for free...! ????

 

Posted

I wouldn't drop rent by 100%. Wear and tear is still going on.

If the land-lords do lower rent, the figure is usually 50%.

Can't pay 50%? Then you should go back to your own country.

LiK, your tenants are shameless.

Posted
5 hours ago, KarenBravo said:

I wouldn't drop rent by 100%. Wear and tear is still going on.

If the land-lords do lower rent, the figure is usually 50%.

Can't pay 50%? Then you should go back to your own country.

LiK, your tenants are shameless.

 

You have no idea. These are multi year good tenants. You want me to throw them out. Jeez .... 

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Posted
51 minutes ago, LivinginKata said:

 

You have no idea. These are multi year good tenants. You want me to throw them out. Jeez .... 

Multi-year clients that are now paying nothing. You can't get 50%, or 25% out of them?

They were good tenants, but, could you really describe them as that now?

Have they even tried to pay you some rent?

 

Your business is no longer a business. It's a charity. If you can afford that, then all power to you.

Posted

LiK's post about tenants unable to pay rent drives home the point that in a severe economic downturn such as this, someone is always left "holding the bag".  As in this case, sometimes it's an individual landlord. Sometimes it's a company, and often it's the banks. Like a game of musical chairs, whoever is at the end of the economic chain is left without a chair when the money stops flowing.

The first reaction of many people is that banks should forgive loans, or provide lengthy grace periods. The problem is that banks are a business, much like any other business. They have employees to pay, capital and non-capital expenses, taxes and other obligations to pay and so on. In addition, banks have to maintain government mandated liquidity levels in order to stay in business. I think we all know what happens when a bank falls below liquidity thresholds and becomes insolvent.

The other common reaction is that the government should step in and provide some sort of assistance or bailout. That money has to come from somewhere. Few (if any) governments have reserves for this type of action, so in simplest terms, they're faced with borrowing, or printing more money, which devalues the country's currency in the world market.

So, bringing this back to the situation in Patong, some bag holders are better positioned than others. Business owners (bars, guesthouses, etc) face losing their income, and possibly capital investments when they're evicted by the landlord for non-payment of rent. Landlords with no mortgage are in a better position than those with mortgages (although like the business owners, they lose the income they rely upon for daily living expenses). Large national banks are better positioned than regional banks that operate only in a distressed area because they're more likely to be able to absorb the cost of non-performing loans in a particular region without becoming insolvent, but it's still a major risk.

There's no simple solution, however it's obvious that in situations like this, someone (or some entity) is always left holding a big steaming bag of doggie doo-dah.

Posted
36 minutes ago, LivinginKata said:

 

I just knew I should not have poked my head out with the Thaivisa Crew. 

 

These are foreigners with no income.  Those that could get back home are gone. There is no-one looking to rent. I could leave homes empty or have known tenant take good care of the property. They all offer to do repairs whatever. You expect me to offer free rent for any passer by.  Get real.  

Passer by, or not. The result is the same. I think I am in the realm of reality, but, are businessmen who give away their products for free. No income? How do they eat? I bet quite a few of them are still drinking alcohol. Money that should be in your pocket.

Posted
10 minutes ago, Kopitiam said:

It's the pregorative of LIK not to collect rent in this pandemic time.  He is making merits with his kind act and the satisfaction of doing a good deed is more than whatever money he can squeezed from his long time tenants.  We should not pass judgement on LIK.

Did you read the last sentence of my post #1542?

Posted
3 hours ago, LivinginKata said:

 

I just knew I should not have poked my head out with the Thaivisa Crew. 

 

These are foreigners with no income.  Those that could get back home are gone. There is no-one looking to rent. I could leave homes empty or have known tenant take good care of the property. They all offer to do repairs whatever. You expect me to offer free rent for any passer by.  Get real.  

No you get real  It is a loser situation  Give them a bottom line for payment  Nobody has no money, and if so chuck them out .. <deleted>, LIK?

 

 

Posted
9 hours ago, pagallim said:

When (and if) the situation improves and they are once again earning, I'm sure that LiK's kindness will be remembered.

I hope your optimism about the morality of so many in this age is not misplaced.

Perhaps I live too much in the past, but the trait of self first seems to be the overriding trend in todays society.

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Posted

Are there still foreigners here who are out of the job and not earning...!? I thought their work permit and visa expire by now and they have to leave...! 

 

Although if they are some Russian lap dancers from Bangla I could easily accommodate them as a landlord ... lol ????... ????...

 

Posted
On 10/8/2020 at 2:44 PM, LivinginKata said:

Ok so I will pop my head up and comment. Our rental homes are not making any income. We have plenty tenants but they can't pay rent as in the entertainment sector. They just manage pay electric charges. Given we own our properties then our maintenance and on costs are low. As it happens I have some pension money that keeps us afloat.  I expect we need to eat into our savings to pay the bigger insurance bills like medical.

 

I don't expect any regular paying guests until late 2021. Very bleak for everyone with a small business.

Well done, sir. Philanthropy in these difficult times should be applauded, not slagged off. It’s your look-out and no one else’s business how you conduct your finances.

 

Okay, maybe the missus, but no one else. ????

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Posted
40 minutes ago, xylophone said:

And another one bites the dust........I have just driven past what was once a restaurant called "I Love Spaghetti" and it has been demolished!

 

Completely gone apart from a bit of a shell left, and so sad to see it go because it has been a bit of an institution in Nanai and I would think it's been here for about 20 years, however not too sure of that, but I do remember eating there in 2006 and it was well established then.

 

Of course it would have taken a hit from the Italian restaurant about 50 m up on the other side of the road, and also another one which opened a further 60 or 70 metres up from that, and all of the food in those establishments is reasonably cheap, so I guess they were competing on price, and that's never a good thing.

 

IMO the best Italian restaurant in Nanai Road, and for some way around I would think, is Da Moreno, and the large pizzas in that place owe their heritage from the pizzas served in La Capannina in Nanai 2.

 

I say this because my favourite Italian restaurant, Salute, (just off Bangla Road) closed about two months ago so I'm looking out for other ones of note, apart from my own culinary delights!

 

I did bump into a girl who works in a restaurant called "Kitchen", which is just opposite the top of Bangla Road, and almost next to Taipan, and she told me that the restaurant was open and started serving at 5 PM and finishes just after midnight, so I will have to give that a try on my next foray out.

Thanks xylo for Da Moreno. Will give that a try. My last pizza delivery pizzeria hut 1 also closed after serving great the last months.

It's not easy any more to get good fresh food in Patong.

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Posted

That's a problem everywhere with restaurants.

Not many customers, low turn-over of food and in this business climate, people are loathe to throw stale food away.

Doing a lot of home cooking these days, not just to save money, but, to ensure the freshness of the ingredients.

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Posted

Interestingly enough just riding down the second (main) road going north to south, just before royal paradise hotel area , I see a brand new pizza place opened on the left/east side, don't recall seeing it before...! ,  as one closes another one opens, and so it goes on....????

 

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Posted
16 hours ago, KarenBravo said:

Doing a lot of home cooking these days

And you're not alone by the sounds of it, not only because I have been doing a lot more cooking at home these days, but in speaking to the Thai owner of a recently opened Italian restaurant, about how things were going, she lamented the fact that even though the prices were cheap, quite a few of the "recent regulars" have now told her that they are coming out less and cooking at home more.

 

Needless to say the most of them are Italian.

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