Anything & Everything About Thailand

[KatoeyLover69]

Report from The Nation dated Thursday 11 May 2006 :-

South does better in tourist arrivals

Tourism in the southern provinces picked up significantly in the first quarter of the year despite political turmoil and surging oil prices, but the industry took a turn for the worse in the North, according to a Bank of Thailand report.

Border checkpoints in the South saw traffic more than double as 706,939 tourists passed through, a 58.5-per-cent rise over the same period last year.

Tourist numbers in the lower part of the southern region edged up 10.6 per cent, while the number of visitors to the western cost shot up by 217.4 per cent year on year. The figures from last year, however, were very low due to the devastating tsunami, the report said.

The improving situation suggests some measure of success in marketing campaigns launched by both the private and public sectors, the report said.

In March alone, 227,070 tourists passed through southern immigration offices, up 37.8 per cent year on year. Compared to March 2004 the rise was 2.9 per cent.

The central bank said foreign tourists had visited every corner of the Kingdom, but the western coast of the southern region was the most popular with European tourists.

"Some tourists switched to the South instead of Bangkok," the report said.

Political uncertainty damaged the tourism industry in the northern provinces in March, the report said. Public-sector seminars were postponed and tourists, most of them Asian, cancelled or postponed trips.

Value-added tax collection from hotels and restaurants in the North dropped by 16.3 per cent in March and airport traffic fell 1.2 per cent. Hotel occupancy rates in the North fell to 52.1 per cent, from 69.4 per cent in February, the report said.

The number of tourists nationwide rose by 13.4 per cent in March from the same month last year. The turnaround in the South, however, was not enough to offset the negative impact rising oil prices had on consumption in the region. Private consumption actually fell in the South in March.

The report said the improvement in tourism and related businesses had lifted purchasing power in the region, sparking increases in VAT collection and new vehicle registrations.

Private investment in the region expanded considerably despite rising interest rates and surging oil prices. The investment growth mostly stemmed from rebuilding hotels damaged by the tsunami.

In the first quarter, investment projects promoted by the Board of Investment were worth Bt6.12 billion, an increase of 17.6 per cent.

VAT collection, vehicle registration and motorcycle registration figures suggest that private consumption in the North fell in March, while private investment grew slightly.
--- KatoeyNewsNetwork

[KatoeyLover69]

Report from The Nation dated Thursday 11 May 2006 :-

GMM Grammy expands into fitness

GMM Grammy, the country's largest entertainment conglomerate, has diversified into fitness complexes aimed at the health-conscious in Bangkok.

The GMM Fitness Club was officially launched yesterday on the AA Floor of GMM Grammy Place, Sukhumvit 21, in a joint-venture partnership with Catareya Wright, who has 13 years of experience in the fitness field.

Catareya, managing director, is also the owner of the Oasis Health Club, located opposite Pata Department Store in Pinklao. Opened two years ago, the fitness centre has attracted more than 1,300 members and reached break even after only six months of operation.

Catareya holds 49 per cent in GMM Fitness Club Co Ltd, while the majority stake is owned by GMM Grammy.

"Our first 1,175-square metre fitness complex at GMM Grammy Place now attracts nearly 300 members, half of them people working in the building - including Grammy singers and artists, executives and general employees - while the other half are walk-in customers," Catareya said, adding that the fitness complex required a investment of Bt40 million and 33 major items of equipment.

Catareya said the annual membership fee was at Bt28,000 for the general public and Bt18,000 for GMM Grammy employees.

"We expect to reach the breakeven point within three months, when a total of 500-600 members has been achieved," said Catareya. "We plan to expand GMM Fitness Club complexes to other office buildings in Bangkok, opening at least one each year."

Catareya said the company saw great potential for fitness centres in Bangkok as market penetration is still low, at only 3-5 per cent of the capital's population.
--- KatoeyNewsNetwork

[KatoeyLover69]

Report from The STAR (Malaysia) dated Tuesday 9 May 2006 :-

A royal affair for all Thais : TALE OF TWO CITIE - BANGKOK

By Foo Yee Ping

THAIS are wearing it with great pride. It is almost like a badge of honour for them.

The yellow wristband inscribed with the words “Long Live The King” is a common sight now on the wrists of many Thais as the kingdom prepares to celebrate the 60th anniversary of King Bhumibol Adulyadej’s accession to the throne next month.

“Ironically, the colour yellow is also used by Sondhi Limthongkul (the man who started the protests against Thaksin Shinawatra) as his signature colour during his battle against Thailand’s No,1 CEO,” Thai journalist M. Chim said.

Locals are understandably beaming with pride at the 60th anniversary as their beloved king is the longest reigning monarch in the world.

Kings and queens from throughout the world have been invited to mark the grand occasion which includes a gala dinner on June 13.

With so many blue-blood rulers arriving in Thailand for the celebrations, caretaker Deputy Prime Minister Wissanu Kreangam has promised that stringent security measures would be in place.

There will be a Royal Barge procession on June 12, an event which is guaranteed to be steeped in tradition and splendour.

One news report said that holy water from five sacred rivers in India had been brought in for the king.

The overall celebration is steeped with traditional practices and customs which makes the occasion so compelling. For example, the first “white” elephant granted royal status during the King’s reign will be getting a new costume soon.

The Nation reported that all “white” elephants found in Thailand must be presented to the king and become his sole ownership.

“White elephants are regarded as auspicious. The more a monarch acquires during a reign, the more prosperous and happy his kingdom will be,” according to The Nation.

When such an elephant is discovered, the Royal Household Bureau will scrutinise the animal’s hair, tail, eyes, toenails, genitals and its other features before deciding whether it has the complete characteristics of a special noble beast based on the ancient textbook Gaja-Laksana.

Upon confirmation of its “white” status, the beast will be elevated as a royal elephant and will then begin a life of pomp and grandeur befitting its position.

So, one thing is for sure if you intend to visit Thailand next month: you won’t be bored.

In March, the Thai government conducted a successful search for the identity of several people captured in five photographs with the king decades ago.

One of the images was deeply moving, showing a little boy kneeling at the feet of the King and respectfully giving him a wai.

The hunt for that small boy ended last month with the authorities discovering that the boy is now a 36-year-old man.

Just recently, another major chapter took place in the Thai royal household. Prince Teepangkorn Rasmichoti, the King’s grandson, celebrated his first birthday.

The boy’s parents, Crown Prince Maha Vajiralongkorn and Princess Srirasmi, held a merit-making ceremony on that day.

They released 21 birds, 21 turtles and 21 fish into the Chao Phraya River. This is reportedly a Buddhist tradition.

Princess Srirasmi is a graceful and demure woman who married the 54-year-old heir to the throne five years ago.

The 35-year-old princess wrote in a Thai magazine recently that her little prince was growing up so fast that “almost all of a sudden, he is one-year-old.”

As for her husband the Crown Prince, she said: “He also gives love and understanding, which is very important to me.”

And the royal family remains a subject of fascination and reverence to the rest of the Thais.
--- KatoeyNewsNetwork

[KatoeyLover69]

Report from Bangkok Post dated Friday 12 May 2006 :-

Upper Thailand faces rainstorms

The Meteorological Department reports that winds from the southwest and the southeast are sweeping through the northern, central and eastern regions. In addition, high pressure from China is also covering the northern and northeastern parts of Thailand.

As a result, the upper region of Thailand can face a tropical storm, and people residing in those areas have to be cautious of heavy downpours and strong winds over the next couple of days.
--- KatoeyNewsNetwork.

[KatoeyLover69]

Report from Bangkok Post dated Friday 12 May 2006 :-

Thais are increasingly loyal workers

Singapore - Asia's booming economies are creating higher staff turnover with job-hopping particularly rampant in India and China, a survey said on Friday.

Bucking the trend was Thailand, where the 2005 turnover rate was 14.6 per cent in 2005 compared with 17.1 per cent a year earlier.

Hong Kong-based HR Business Solutions (HRBS), a human resources consultancy firm, conducted the poll of 1,147 companies in 14 Asian economies. The results were published in The Business Times.

The attrition rates were 15.4 per cent and 13.8 per cent respectively in India and China last year, the poll said, compared to 10.5 per cent and 12.3 per cent in 2004.

"China continues to be blazing in growth and needs many qualified specialists and managers," Elaine Ng, with HRBS, was quoted as saying. "India is riding as a hot destination for investment now."

"These two countries have very high voluntary employee turnover rates," she noted.

Hong Kong, enjoying the spillovers from China's hypergrowth, saw its turnover rate jump from 8.8 per cent in 2004 to 11.6 per cent last year.

The higher turnover rates have been reflected in increased pay. Average pay in China rose 7 per cent in 2004 and 7.8 per cent in 2005, and is expected to increase 7.8 per cent this year.

Singapore's turnover rate of 12.2 per cent was up from 11.4 per cent in 2004, the poll showed.

"The higher attrition rate, along with a similar trend in other countries in the region, reflects improved employment opportunity," Ng said.
--- KatoeyNewsNetwork

[KatoeyLover69]

Report from Bangkok Post dated Friday 12 May 2006 :-

Chinese tourist spending rising in Thailand

Kasikorn Research Centre said at least one million Chinese tourists will visit Thailand this year, generating revenues of 26 billion baht (US$689 million), compared to 800,000 Chinese tourists last year and revenue of 20 billion baht (US$530 million).

KRC said from a tiny market a decade ago, China is now ranked among the top ten biggest markets and is one of the fastest-growing markets for Thai tourism. This reflects the strength of the Chinese economy and the Chinese government policy to encourage its people to travel.

Nevertheless domestic and international factors have played a role in making the Chinese tourist market for Thailand develop in a rather volatile pattern over the last decade. But the overall picture is such that from over 450,000 visitors in 1996, Thailand received nearly double that number last year, receiving over 800,000 Chinese tourists in 2005.

According to statistics collected by the Tourism Authority of Thailand for 2004, some 780,000 Chinese tourists spent over 19 billion baht during their stays in the country.
--- KatoeyNewsNetwork

[KatoeyLover69]

Report from The Nation dated Friday 12 May 2006 :-

Female University students in skin-tight & sexy uniforms

Every year they're warned and every year they disregard the warning. Students just want their uniforms . . .

Flashy, skin-tight uniforms are the latest rage for female university students while their male counterparts are slipping into loose-fitting jeans with waists cut low enough to reveal their boxers.

But as both sexes prepare for the beginning of the new semester next month, university administrators are updating their dress codes and reminding students they will also be graded on their attire.

Kasetsart University has banned skirts with low-cut waists as well as jeans that reveal boxer shorts, said Surachai Charudej, director of its Student Affairs Department.

Offenders will be banned from lecture halls and will lose marks, Surachai said. "We will warn the freshmen about the issue at orientation day," he said.

So far students are ignoring the warnings. As they pore over clothing racks, they are grabbing sexier, attention-grabbing attire, vendors say.

Skirts are even more daring this year than last year, noted a vendor at Bang Kapi's Tawanna market. "Some are as tiny as 30cm from waistline to hem, and there are short skirts with front, rear or side slits, depending on your preference," he said.

"The SSS size was the smallest shirt size last year, but this year our smallest is the SSSSS," he said.

"Noi", a 21-year-old student at Prince of Songkla University, said she had been wearing close-fitting long shirts and skirts with low-cut waists since she was a freshman. "Wearing a close-fitting shirt makes me look better," she said, adding that she dieted to fit into her uniform.

"It's difficult to find simple uniforms with long skirts and big shirts at shops now," she said.

Usa Malison, from Mahidol University, said trendy students were picking up their uniforms at MBK and Chatuchak market.

Supaporn Suvarnarpa, the owner of MBK's Moomtong at Bonanza, said female students seemed more determined than ever to squeeze into tight-fitting uniforms.

"It's so disturbing," said Dr Chanvipa Diloksamphan, the director of the Student Affairs Department at Rajabat Institute's Bansomdej campus. "While we are trying to campaign for proper dress, many shops near the university offer improper uniforms."

She said the university had always had a strict dress code.

Students who violated it by wearing see-through shirts or short skirts would lose marks and be reported to their parents, she said.

Still, the university's efforts seem to be falling on deaf ears.

"Each year, we warn freshmen about how they dress, but when they become seniors they always dress more improperly," Chanvipa said.

"Some students say if they don't dress according to trends, their friends will tease them," she said.

It is difficult to control students, she said.
--- KatoeyNewsNetwork

[KatoeyLover69]

Report from The Nation dated Friday 12 May 2006 :-

Spending on credit cards grows : Tough times forces consumers into debt

Facing pressure from soaring oil prices and an economic slowdown, more people are swiping their credit-cards to make everyday purchases.

In March alone, spending on credit cards leapt 38 per cent to Bt63.2 billion over the same period last year, according to the Bank of Thailand.

Of the total, Bt35.6 billion - or 55 per cent - was spent on cards issued by Thai banks. This marks a 55-per-cent rise from March 2005. Non-bank cards accounted for Bt20.3 billion of the spending, up 24 per cent from March last year.

The increased spending lifted total outstanding credit-card debts to Bt143.6 billion as of March 31, up 21 per cent from the same time last year. Non-banks' aggregate outstanding balances grew 31 per cent to Bt67.1 billion. Thai banks however remain the biggest creditors, with total outstanding balances worth Bt48.6 billion.

Consumer-loan makers attributed the sharp rise to borrowers struggling to make ends meet. The rising cost of living has forced a number of customers to go into debt to cover routine expenditures.

Card issuers have also launched marketing campaigns to lure new customers. There were 10.2 million accounts as of March 31, 14 per cent from the same time last year. Thai banks saw their aggregate number of cardholders rise 19.7 per cent, but non-banks still had the most accounts at 5.14 million.

Easy Buy Plc, a Japan-based retail finance provider, extended more consumer loans in the first four months of the year than it has since its started operating in Thailand, according to Katsuhiko Madono, the company's chief executive said. The higher cost of living has increased demand for consumer loans, he said.

In the first four months of the year, the company's extended Bt3 billion in new personal loans, a 20-per-cent increase from the same period in 2005.

"This is the company's best performance since launching personal-loan products in Thailand in 2001. Our historic high loan growth was the result of two core reasons. The first is loan requirements to cover clients' financial plans, while the other is economic pressure. Once the cost of living is higher, many customers need loans for routine spending," Madono said.

The company is closely monitoring its loan collections as the economic conditions worsen. More borrowers are having trouble repaying loans than before, while the circumstances have decreased the company's approval rate of loan applications to 60 per cent.

With higher interest rates and fuel prices driving up the costs of living, around 1,000 of the company's borrowers have asked the company to reschedule their payments. They want to extend the loan period, as well as adjust other loan conditions, he said. Easy Buy that its new loans will grow by Bt14 billion, 40 per cent more than last year.

Apichat Nantaterm, executive director of Aeon Thana Sinsap (Thailand), another consumer loan maker, said that demand is high.

"In an uncertain economic environment, consumers want to save their cash first and borrow for necessary spending. The company's loans mainly focus on product financing, in particular, for buying electrical and household goods," he said.

However, Kwanchai Modpradit, director of marketing for Capital OK Ltd, said the company's lending for the first four months of the year was lower than targeted. "But the borrowers are high quality ones who are seeking loans for necessary spending amidst the economic slowdown," he said.

He predicted that the economy would improve in the third or fourth quarter of the year after the next general election.

Card issuers have asked the central bank to raise the maximum annual interest rate past the current 18 per cent, citing higher costs of funding. The BOThas yet to approve the proposal.

Tarisa Watanagese, the central bank's deputy governor, said the BOT did not know exactly how much the creditors' costs have increased, so it could not make a decision. The BOT has to wait for details of higher costs, but only one issuer has sent information to date.

"The BOT has been cautious with the credit-card business and has found that there is no significant default rates. Non-performing loans remain low," she said.

According to the BOT, debtors have been taking cash advances on their credit cards. As of March, cash advances spiked 44 per cent from the same time last year, to Bt15.8 billion. Cash advances on Thai banks' cards increased by 49 per cent to Bt11.2 billion. Withdrawals via foreign full branches and non-banks increased by 36 per cent and 34 per cent respectively.

Card spending abroad jumped 11 per cent to Bt2.1 billion in March, on which spending on via Thai banks saw a 17 per cent rise, followed by 13 per cent on cards issued by foreign banks with branches in the Kingdom.
--- KatoeyNewsNetwork

[KatoeyLover69]

Report from The Nation dated Friday 12 May 2006 :-

Skytrain extension to Taksin Intersection in Thon Buri

The Bangkok Metropolitan Administration will hold a meeting with the contractor Siemens on Monday to finalise the cost of extending the Skytrain from Saphan Taksin station across the river to Taksin Intersection in Thon Buri.

The German company has said it requires Bt1.8 billion to complete the 2.2-kilometre extension, while the BMA says it has a budget of Bt1.2 billion, said Aphirat Siwaphornphithak, head of the BMA's Traffic and Transportation Department.

The 2.2-km section is part of an 5.7-km extension project, which will stretch from the Taksin Intersection to Phetkasem Road in Bang Wa.

The 5.7-km extension is part of the BMA's overall expansion of Bangkok Transit System service routes in three directions. The other two routes are the 5.25-km extension from On nut station to Sukhumvit 107 and the 5.1-km extension from Mor Chit station to Kaset Intersection. The three extensions will cost an estimated Bt27 billion in total.

The BMA will completely own and run the three extended routes. This will require the City Assem-bly's approval of an amendment to end government subsidies, and the termination of an agreement for the routes to be operated by a joint venture with the private sector.
--- KatoeyNewsNetwork

[KatoeyLover69]

Report from The Nation dated Friday 12 May 2006 :-

Sizzler offers take-away salads as it tries to drum up sales

In an attempt to maintain its sales during the current economic slowdown, the operator of the Sizzler restaurant chain has expanded into take-out food.

SLRT Ltd, which runs all of the US-based company's steakhouses here, will start with its "Salad To Go" menu hoping the move will expand its customer base by 5-10 per cent and increase the frequency of visitors. Thailand is the second country to launch "Salad To Go", after Australia last year, said Nongchanok Stananonth, marketing director for SLRT.

"Salad To Go" customers receive a box, which they can fill at the salad bar. The boxes are then weighed at the cash registers to calculate the price. With each box, customers receive a cup of soup of their choice.

The salad box itself costs Bt10 and the minimum price for a take-out salad is Bt50.

Nongchanok said take-home salads allow Sizzler to reach customers who would not normally visit the restaurant.

It is hoping its regular customers buy the salads at first, but because the boxes can hold enough food for more than one person, Sizzler is hoping customers will share the salad with friends and family.

Tapping into the loyalty of existing customers is a better way to create interest in the new service than advertising, Nongchanok said.

To build awareness of the new scheme, Sizzler will display "Salad To Go" posters at all of its branches and also have presenters on hand to promote the service.

The company conducted trials of Salad To Go last month at five branches and found that 70-80 per cent of customers who tried it came back and bought it again later. This month, it will expand the idea to 20 branches, including one in Nakhon Ratchasima province.

SLRT expects only modest returns from Salad To Go, but sees it as an important part of its strategy to build loyalty among its customers, who due to the recent economic situation have been forced to tighten their belts.

Despite a general slowdown in consumption nationwide, Sizzler's sales are still growing, according to the company. Average spending per head at Sizzler's 28 branches is a little over Bt100 at lunchtime and Bt200 at dinnertime.

Last year, it attracted four million visitors, of which 40,000 were members. It expects the number of visitors to increase 10 per cent this year and its membership to increase by 25 per cent.

So far this year, the company has opened two branches. It plans to open two more before the end of the year.

Each branch costs between Bt18 million and Bt20 million to open and covers about 200 square metres.
--- KatoeyNewsNetwork

[KatoeyLover69]

Report from The Nation dated Friday 12 May 2006 :-

Consumers worldwide get thrifty as oil surges : Thais to save money, go shopping less

Out-of-home entertainment, upgrading technology and new clothes are the top three belt-tightening areas for Thai consumers faced with a cost-of-living increase following oil-price and interest-rate rises, according to a survey by ACNielsen.

The global survey, conducted across 42 countries in November 2005, polled over 23,500 respondents, who were regular Internet-users.

Over half of the respondents (57 per cent) claimed they would cut down on out-of-home entertainment to stay within their budgets, while 53 per cent said they would spend less on new clothes. Nearly half (48 per cent) also said they would delay upgrading technology.

Across the Asia-Pacific region consumers' priorities varied slightly with clothes shopping higher on peoples' list of priorities than upgrading technology. Out-of-home entertainment still ranked top of non-essential things to cut down on, led by Thailand (73 per cent), Hong Kong (70 per cent) and Taiwan (64 per cent).

Upgrading technology was second on the list, with Thailand on top (61 per cent), closely followed by Singapore (60 per cent) and China (59 per cent).

Spending less on fashion was the third thing Asia-Pacific consumers would consider, led by the Philippines (62 per cent), Australia (57 per cent) and New Zealand (54 per cent).

Cross-referencing these belt-tightening measures with an earlier ACNielsen survey about how consumers spend spare cash once essential living expenses have been taken care of, it is clear that while people in the Asia-Pacific region are pretty determined to stick to their holiday plans they still focus on putting their money into savings.

In Thailand, as the economy continues on a slight downturn from last year, more than half of Thai consumers are focused on savings and do not think it is a good time to spend.

Nearly half of them also mentioned they would cut down on non-essential living expenses to counteract the escalating price of fuel.

"To a degree belt-tightening strategies are a reflection of lifestyles in each region and show where the biggest savings can be made," said Chantira Luesakul, managing director of ACNielsen Thailand.
--- KatoeyNewsNetwork

[KatoeyLover69]

Report from Bangkok Post dated Monday 15 May 2006 :-

New tourist site near Hua Hin

The province of Prachuap Khiri Khan, best known as the home of the Hua Hin seaside resort, is is developing a new tourist site so far unseen by travellers.

The site, Singkhorn Checkpoint bordering Burma, is being developed by local authorities as one of the country's high potential tourist destinations.

The Singkhorn Strait is at narrowest point of southern Thailand. Local authorities say its charming surroundings could attract a large number of visitors if it is developed properly.

The site's historic value as a warriors' passage in the old days could also be a selling point, local authorities noted.

Development plans of the new tourist destination are being tailored so that both Thai and foreign visitors would be attracted. Authorities say they will be ready "in the near future."
--- KatoeyNewsNetwork

[KatoeyLover69]

Report from Bangkok Post dated Monday 15 May 2006 :-

Giant catfish hunters suffer after making big sacrifice

Chiang Rai - Fishermen who hunted the Mekong giant catfish are struggling to make ends meet since they took a landmark pledge to stop catching the rare species last month.

Boonrian Jinnarat, adviser to the Giant Catfish Club, a group of commercial fishermen, has called on conservation groups participating in the conservation project to come up with measures to help the fishermen, who now lack income to support their families.

His comments came shortly after two fishermen broke their promise and resumed fishing in the river last week. The fishermen said they had to break ranks to earn a living.

Mr Boonrian said it was unfair if conservationists ask locals to abandon their staple livelihood without long-term assistance.

Hunting the giant catfish, or pla buek, has been a crucial source of income for Chiang Rai fishermen for decades. It is said to generate about one million baht a year for the fishing community in Chiang Khong district.

Mr Boonrian said his group had previously asked for a job replacement scheme for affected fishermen. However, there had been no progress as the focus was still on how to end the fishing.

"It is a great sacrifice for these fishermen to agree to stop catching pla buek. So they should not be left to struggle alone," said Mr Boonrian. In mid-April, 68 fishermen reached an agreement with international and local wildlife conservation groups to stop catching the rare fish in order to preserve it - the agreement is first of its kind in the country.

The fishermen also agreed to sell their seine nets, worth about 20,000 baht each, to symbolise the end of the hunt. The local and international conservation groups have been seeking donations to buy the fishing gear and to set up a fund to help the fishermen start new careers.

The Mekong giant catfish, Pangasianodon gigas, is on the World Conservation Union's red list of critically endangered species and is found only in the Mekong river. According to the Giant Catfish Club's records, the catch has plunged drastically, from 69 fish in 1990 to only four in 1997. Last year, again only four were caught. Biologists blame overfishing and deterioration of the river's ecology for the sharp drop in population.

Former Chiang Rai senator Tuenjai Deetes, one of the leaders of the Mekong giant catfish conservation project, said conservation groups would definitely come up with medium and long-term plans to help the affected fishermen. This would include establishment of a fund to promote alternative careers for the villagers, such as aquaculture farming, she said.

Mrs Tuenjai suggested that fishermen use their unique skills to help scientists study the rare fish, or work as guides and educate tourists about the nature of pla buek and traditional fishing skills.

These activities would become the new sources of income for the fishing communities, while traditional knowledge about the giant catfish and fishing skills would be preserved, she said.
--- KatoeyNewsNetwork

[KatoeyLover69]

Report from Bangkok Post dated Monday 15 May 2006 :-

British Embassy completes sale of nine-rai plot to Central

The British government yesterday completed the sale of part of its Bangkok embassy compound on Phloen Chit Road to the Central Group, the country's largest retail operator.

The price of the prized nine-rai plot to Central affiliate Tiang Chirathivat Real Estate Co was not disclosed but industry experts estimated it at three billion baht.

Central edged Land & Houses Plc, the country's largest residential developer, in the contest to acquire the site. The company wants to turn the plot into a shopping area, serviced apartments or a hotel and entertainment anchor to complement its nearby Central Chidlom store.

Intense competition in the retail business in Bangkok's central business district has driven Central to seek ways to build on its existing businesses, which are now constrained by limited space, according to industry analysts.

Central executives declined to comment on the deal, but the British Embassy said yesterday it was the largest-ever property sale by the Foreign Office. The historic residence, the embassy and the "green character" of the compound would be preserved, it said.

About 11 million (770 million baht) of the proceeds will fund redevelopment of the remainder of the compound, including new staff accommodation, recreational facilities, remodelling of the embassy offices and security work.

The embassy said that the 32.3-rai compound, purchased in 1922, was larger than needed. It said the land sold was the most polluted and noisiest part of the compound, next to the six-lane Phloen Chit Road and the BTS skytrain.

The War Memorial and statue of Queen Victoria would be moved to appropriate sites near the residence, officials said.
--- KatoeyNewsNetwork

[KatoeyLover69]

Report from Bangkok Post dated Monday 15 May 2006 :-

Seacon set to tap airport's potential

The operators of the 10-year-old Seacon Square plan to invest up to 10 billion baht fund in residential and hospitality projects on the Srinakarin Road site to tap the opportunities from the opening of Suvarnabhumi International Airport.

Tatiya Sosothikul, managing director of Seacon Square Development Co, said the Seacon City complex would occupy 100 rai and contain 700,000 square metres of space with anchors including a five-star hotel, condominium, serviced apartment and office building.

Construction would begin next year and take about seven years to complete, he said yesterday.

Financing will come from a property fund, internal cash flow and loans, he said.

According to Mr Tatiya, the company will assess the market demand for each development category and also consider the status of planned mass transit links after the airport is opened. After that it will design each component in response to projected needs.

Apart from that, the company plans to spend another 200 million baht for the first major facelift of the Seacon Square shopping centre next year.

"Sales at Seacon Square have been increasing continuously for three years, partly because customers are moving to buy residential properties in this area due to the opening of the new airport,"said Mr Tatiya.

If the customer profile in the Srinakarin area changed, the company would consider upgrading the centre, he added.

In addition, the company plans to spend another one billion baht to develop a new luxury hotel in Phuket next year.

The projects are part of Seacon's strategy to increase sales and diversify risk.

Mr Tatiya said Seacon Hotel and Resort Co was set up last year with registered capital of 10 million baht to develop 40 five-star pool villas on a 25-rai plot in Hat Mai Khao, about 500 metres from the JW Marriott hotel in Phuket.

Construction at Hat Mai Khao will start early next year and be completed in August 2008. It will decide in the third quarter whether to manage the hotel itself or hire a chain to do so.

To finance the hotel investments, the company expects to obtain 700 million baht from bank loans, with the balance to come from its cash flow.

Mr Tatiya said the company chose Phuket because of the business potential. "The tourism situation in Phuket has already recovered [from the 2004 tsunami]. Also, the total supply of pool villa style hotels in the next two years will be less than 300 rooms while the potential demand is up to 1,000."

Therefore, the company plans to add a second pool villa development in Phuket by taking over an existing hotel, as well as establishing a new one on Koh Samui.

"We want to build hotels as our second business pillar to help continuously generate long-term sales to the company," said Mr Tatiya.

Seacon expects to earn about 150 million baht from hotel business in the first year of operation, increasing to 500 million baht within five years.

Sales last year totalled 988 million baht, up 9% from the previous year, while net profit rose 3% to 238 million baht. This year it expects sales to rise 7% to 1.05 billion baht with a 20% rise in net profit.