Guest fountainhall Posted January 27, 2011 Posted January 27, 2011 Remember the Elite card? Remember all the razzmatazz when it was launched back in 2003? Remember how Prime Minister Thaksin, who conceived the idea, promised that this upper-end programme of immigration privileges, long term property leases and major discounts at luxury hotels, golf courses and spas, would attract so many rich and wealthy tourists and business people that there would be 1 million members by 2008? Yes, 1 million was the figure he quoted! Oh happy day! As we all later found out, the Thailand Elite Card was scrapped two years ago. The membership at that time? 2,570. That’s it – and, no, I have not missed off any zeros. Around one quarter of one percent of the target. Scrapping the Card is the easy part, though. The 2,566 members today (presumably 4 must have died in the interim) are still due very substantial and costly benefits in return for the fees they paid when they joined of between Bt. 1 and 2 million (approx. US$25,000 and $50,000 in those days). As of 2006, the Elite Card scheme had accumulated reported losses of Bt. 1.14 billion (and Thaksin, let's remember, was in power for all but a few months of that entire time). I cannot find anywhere the figures for the losses since 2006. But given that they increased from Bt. 134 million in 2003 to Bt. 384 million in 2004, Bt. 842 million in 2005, and then Bt. 1.14 billion by 2006. it can be reasonably assumed that at least another Bt. 1 billion has been added to that debt since then! In today’s Bangkok Post there is an article outlining the problem facing the government – what to do about the recurring deficit in a programme that has been a complete and utter disaster? One option is to hand it all over to the TAT which would then have to shoulder the long-term operating costs of Bt. 108 million per year. Another is to close the company operating the scheme and refund membership fees and other associated costs. That will cost Bt. 3 billion! It’s dangerous, though, as there could be damage to the Kingdom’s tourism image if the members got together and decided to sue. With their obvious wealth, you can bet high-powered lawyers would be brought in. There is one silver lining, though - a tiny one. It seems there is still US$4.2 million in the kitty. With the obligations to the members, that alas is just a drop in the bucket. So no doubt taxpayers will end up paying for this Thaksin folly. http://www.thailandelite.com/membership.php http://www.property-report.com/site/thailand-elite-scheme-to-be-scrapped-4309 http://www.bangkokpost.com/news/local/136057/little-fancied-elite-card-is-abandoned http://www.bangkokpost.com/news/local/218397/elite-card-operator-is-dealt-new-blow Quote
pong Posted January 28, 2011 Posted January 28, 2011 the main carrot for this scheme, mainly taken by Japanese and Taiwanese, was life-long visa free entry without any time-restrictions. Which as such is not costing very much in lost fees. I remember quite well an all-open glass enclosed cell in the mid of Don Muang/International for this elite members, later it got blackened window panes, to give them some prvacy from the rzzmatazz walking around. I myself rally wonder if those figures are not blown up out of any proportion-or the still lingering on workers for the scheme are out in full hand to maintain their costly jobs-doing nothing (welcoming the odd member-maybe 5 a year?) for an ensured source of income. Simply rent it out to some ''hospitality'' company, if which there are dozens working at swampy. Quote
Guest fountainhall Posted April 27, 2011 Posted April 27, 2011 Its official! The Thailand Elite scheme is dead, as decided by the Cabinet yesterday. Why they did not pull the plug on it years ago is the mystery, given its huge debts. In an earlier post, I estimated debts of at least Bt. 2 billion to date (today's Bangkok Post still has a figure of Bt. 1.4 billion, but that is 5 years out of date). To that now has to be added a further Bt. 2.5 billion to cover potential law suits from the 2,500 or so members "should any of them take legal action once their membership is revoked." So much for Thaksin's folly. One million members and Bt. 1 trillion over 5 years was what he promised. Let the law suits begin. http://www.bangkokpost.com/business/economics/233921/elite-card-decides-tocall-it-a-day Quote
TotallyOz Posted April 27, 2011 Posted April 27, 2011 I was one of the saps that was going to buy this card. I had even gone to meet with a rep from the company. Then, rumors started flying around and I thought best to wait. The longer I waited, the worst things seemed to be. I would have easily paid the 1m baht for the visa program and still would today. But, I am glad I did not invest in this as my mind told me never to put any money in Thailand (this program or a condo) as you never know. TIT Quote
