thai boys and the exchange rate

[Guest beachlover]

Damn... Not much of a difference between 400 baht and 1,000. 600 baht is only AUD$20!

[Guest fountainhall]

Damn... Not much of a difference between 400 baht and 1,000. 600 baht is only AUD$20!

Indeed. But you seem to have missed the point. My friend was leaving the following day back to your city and did not have more cash on him. I am sure it was a lot for the boy not to have it, but he had accepted the 'deal'.

[Guest travelerjim]

Damn... Not much of a difference between 400 baht and 1,000. 600 baht is only AUD$20!

 

beachlover,

 

You are right...it was only a 600 baht difference. And, as the visitor

from Australia was at the end of his holiday, he had few baht left in his

wallet to spend. I certainly understand that, have been there before on holiday,

and hope he had a good holiday and will be back again soon.

 

However, as it relates to retired expats, it is important to realize

that there are many, many expat retirees living in Thailand who retired

5, 10, 15, 20, and more years ago.

 

Also...Not everyone that retires are millionaires!

 

Many chose to retire in Thailand for many reasons and

try to use their best planning judgment at the time.

 

However, over the course of years inflation has impacted their

retirement dollars and the cost of living and value of the Thai baht

have doubly challenged a retirees budget living in Thailand.

 

GT, when you are next enjoying a meal at Salt & Pepper, please ask

Zee, the owner, how many retirees he knows of who are really hurting

from the financial crisis and dwindling baht to live on each month to

make ends meet.

 

I can assure you there are many, and they are caught between a

"rock and a hard place". They are counting every baht carefully.

Thailand is their home. Their home country is but a past memory.

 

I have seen a 25% + drop in the purchasing power of the Thai baht and that

is significant in any one's budget. I further expect the value

of the dollar to decline further...to 30, and it is even possible

it will test the mid- 1990's 25 Thai baht to US$1.

 

Today's world of finance vs living in Thailand as a retiree expat

is becoming an enormous challenge for many and the future prospects

are not good for improvement.

 

All the while, each retiree sets out to enjoy Thailand in his own way.

 

I applaud their efforts and encourage them to ...

Get Out & Smell the Roses, While they Can!

 

Even if it means short time with a smile...on a challenged budget..

life in Thailand can still be wonderful.

 

tj

[Guest]

I really just don't get it!

 

OK, I shall try again.

 

The price is not set considering only what the prostitute requires to live. Totally irrelevant. If he get's 1000 baht, that's the equivalent of 3 days work in an ordinary job. So he CAN live on that, or less.

 

Neither is it determined purely by exchange rates & what the farang is likely to pay.

 

The concept is one of a market & is a balance between what the customer is prepared to pay and what the service provider is prepared to sell his services for.

 

 

1 Simply, if supply exceeds demand, prices may fall.

2 If demand exceeds supply, prices may rise.

3 Demand for many commodities is price sensitive (ie if the cost to the customer goes up, demand falls).

4 The price the customer is prepared to pay will depend on his own circumstances, including his income, costs and exchange rate fluctuations.

 

The same principles apply in many other sectors of the economy, especially hotel room prices (for those prepared to haggle)..

 

If a Thai guy is selling himself for the equivalent of 3~4 days pay from an ordinary job

& the farang customer base is struggling because of exchange rates, the going rate for tips may well fall.

 

The end result of all this is:

Fewer customers, fewer off's & downward pressure on prices for tips.

 

Finally, the concept of what is considered by one individual as "fair" has nothing whatsoever to do with the going rate for the broader market.

[kokopelli]

Do you really expect them to be asking for less in light of this?

 

Why would they care how much more it's costing you in your own currency? It's your problem, not theirs. quote

 

 

 

Interestingly, today I was speaking by phone with a Thai I sometimes help with money but not in exchange for sex. He asked if the exchange rate is making it difficult for me to send money. I said yes. He did not ask for less and I did not tell him that "next time" I was going to cut back, but I think he realizes the inevitable.

[MrBill]

There have been various discussions from time to time about the rising baht and the idea that this should encourage venue operators and boys to lower their prices. I'm sorry I don't agree.

I echo your sentiments. call me naive about such things, but if I were trying to off a boy with the wealth of a Donald Trump or Richard Branson, I might well expect them to drop their rates as they could afford it more than me. I certainly would expect that the Marriott, Novotel or Hard Rock corporations would lower their rates IF they WANTED my business as I am pretty sure they too have more money than I, and can afford it. But to expect a bar boy who makes not even a 10th of what I make a year to cut me a break... well how does that passage go about fitting through the eye of a needle?

[Guest beachlover]

The concept is one of a market & is a balance between what the customer is prepared to pay and what the service provider is prepared to sell his services for.

 

Very sensible... I agree.

 

If the price drops, it is due to supply/demand changes. Not because you personally think you should be allowed to pay less since the exchange rate moved against you.

 

Interestingly, today I was speaking by phone with a Thai I sometimes help with money but not in exchange for sex. He asked if the exchange rate is making it difficult for me to send money. I said yes. He did not ask for less and I did not tell him that "next time" I was going to cut back, but I think he realizes the inevitable.

 

That's fair enough. I think it is a more personal exchange. It's also an ongoing agreement, which is subject to change when mutually agreed.

[Guest]

But to expect a bar boy who makes not even a 10th of what I make a year to cut me a break... well how does that passage go about fitting through the eye of a needle?

 

1 There's possibly a difference between your personal preferences on how wealth distribution and how markets actually work.

I've never claimed market mechanisms are fair, but I do believe that's how things generally work and markets are the fairest mechanism yet set for pricing. State control ends up with corruption causing worse problems than market pricing.

 

2 You & I might make 10 or more times what a bar boy does in a year. However, some other tourists (or expats) might have lower incomes & larger mortgages. After they have paid for their flights and hotels, they may have to control their expenditure on holidays in order to afford the holiday. If they can pay 700 instead of 1400, then they are likely to pay 700.

Now if the going rate is maybe 8000~1200, is it wise for us to keep paying substantially above that?

[Guest Astrrro]

 

Now if the going rate is maybe 800~1200, is it wise for us to keep paying substantially above that?

 

I think it is wise for some people, those that intentionally choose to overpay and can afford to do so.

 

But the perception of high rates can set up a lose lose scenario for both boy and customer. I suspect that very often both customers and boys would like a 500 baht quickie but the customer does not want to appear cheap and the customer leaves without sex and the boy goes home without money.