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THE PHUKET DIVE industry is in distress, with high costs and competition forcing a crowded profession to reassess the future.
Diving's downturn has even been linked to the recent suicide by hanging on a boat of one business owner, a popular expat.
A spate of bitter email exchanges between some brands has also caused dismay. In some cases, but not all, the heat is being generated between expats and Thais in an industry where teamwork in the past has been essential and unquestioned.
Some dive companies retain a positive attitude and believe the situation will improve. Others acknowledge the need for a shakeout, with the strongest surviving.
The proliferation of small dive operations, cardboard companies with little cash, has intensified the current crisis, which shows no sign of abating.
As economic reality bites home in 2010, layoffs are expected at some of the Andaman region's resorts and spas, both large and small. More restaurants and associated tourism businesses are expected to suffer, too.
For the dive industry, the crunch is already here. Instead of bringing improved revenue, the 2009-2010 high season has become the sigh season.
Tourists are back in numbers, but they have less money to spend (sigh). Where once it was easy to get a slice of the action, the oversupply of dive agencies means less has to cover more (sigh).
Diving is more expensive on Phuket (sigh) and the political uncertainty in Thailand means people sometimes choose to dive in Indonesia or Malaysia (sigh).
Survival for some will not be easy. One company manager who has diversified into dive apparel told us she has heard often of tourists complaining about prices.
Live-aboards have grown in scale to accommodate larger numbers of people but now, filling them is no longer easy.
Here are a some anxious excerpts from emails that have been copied to Phuketwan:
DIVER in Distress One ''I've heard rumors about myself and the company for more than one year now and have not retaliated in any way . . . I am brave enough to tell you that my company has seen better days with many of these current factors affecting me every day as customers decrease, decreased income, increased expenses etc, and of course it's related to cash flow and finances, which many people are concerned about. I am confident to continue operating to make us get through this crisis.
''I know that I am not the only one as vicious rumors circulate about others, too. I think now is the time to help each other not stand all over each other.Concerning any overdue invoices, I am still continuing to make no profit every day and am also owed a lot of money by people who are in the same situation. Please kindly wait for a while and let me work smoothly, so I can pay you all.''
DIVER in Distress Two ''This email is in an effort to fix the relationship between me and you. I was hoping, in your reply, that we would be coming to a point to get our problems sorted. After all, I owe you approximately 20,000 baht from a debt which was left to me by my previous business partner.
''My interest to clear the debt is still foremost. But this year, it has been too difficult to clear. This year has seen many losses and I have been riding the big bad wave so that I can be able to get money back to you during this high season. I have tried all year to make it through to this time of the year to be in a position to make corrections, and closing the door on me now just doesn't make sense.''
DIVER in Distress Three ''We should have better cooperation between true Phuket Thai dive boat operators with regular meetings and clear strategies to deal with all foreigners setting up illegal dive companies (More than 500 registered with TAT Phuket) with proxy nominee shareholders, proxy nominee directors and proxy nominee Thai staffs to look like they are Thai-managed dive companies.
''In fact, they cheat us. I understand that Thais do not like to complain to Thai administrations but complaining about hardship we are encountering with unfair competition is not a sin.''
PROBLEMS within the industry in Phuket, Phang Nga and Krabi are exacerbated by the high cost of entry to the Similan and Surin National Parks, the Andaman's prime diving destinations, with an entry fee of 200 baht and 400 baht a day for diving.
The national parks are scheduled within two or three years to become a Unesco World Heritage site and may be required to limit the number of visitors and divers per year.
This would normally apply a brake to the unprecedented expansion within the diving industry, an expansion that has come without customers to justify it.
However, from 2010 businesses in Asean member countries will be able to hold 51 percent of Thai companies, increasing to 70 percent in 2015 and 100 percent in 2020.
Without regulation, this means certain continued turbulence.
This year the local diving industry has also recorded a live-aboard sinking in which seven people drowned. A police investigation provided a single-page report, with no expert review of the cause of the disaster or the lame, late rescue of 23 survivors.
To add insult to injury, an artificial reef of obsolete aircraft, sunk off Phuket with great expense and publicity, was destroyed by fishing trawler drags and strong tides that divers did not anticipate.
Any individual on Phuket who feels excessive emotional distress should call 1667 for help, 24 hours a day.
Thai 'Fear Factor' Makes Boatpeople Fly NowTHE PHUKET DIVE industry is in distress, with high costs and competition forcing a crowded profession to reassess the future.
Diving's downturn has even been linked to the recent suicide by hanging on a boat of one business owner, a popular expat.
A spate of bitter email exchanges between some brands has also caused dismay. In some cases, but not all, the heat is being generated between expats and Thais in an industry where teamwork in the past has been essential and unquestioned.
Some dive companies retain a positive attitude and believe the situation will improve. Others acknowledge the need for a shakeout, with the strongest surviving.
The proliferation of small dive operations, cardboard companies with little cash, has intensified the current crisis, which shows no sign of abating.
As economic reality bites home in 2010, layoffs are expected at some of the Andaman region's resorts and spas, both large and small. More restaurants and associated tourism businesses are expected to suffer, too.
For the dive industry, the crunch is already here. Instead of bringing improved revenue, the 2009-2010 high season has become the sigh season.
Tourists are back in numbers, but they have less money to spend (sigh). Where once it was easy to get a slice of the action, the oversupply of dive agencies means less has to cover more (sigh).
Diving is more expensive on Phuket (sigh) and the political uncertainty in Thailand means people sometimes choose to dive in Indonesia or Malaysia (sigh).
Survival for some will not be easy. One company manager who has diversified into dive apparel told us she has heard often of tourists complaining about prices.
Live-aboards have grown in scale to accommodate larger numbers of people but now, filling them is no longer easy.
Here are a some anxious excerpts from emails that have been copied to Phuketwan:
DIVER in Distress One ''I've heard rumors about myself and the company for more than one year now and have not retaliated in any way . . . I am brave enough to tell you that my company has seen better days with many of these current factors affecting me every day as customers decrease, decreased income, increased expenses etc, and of course it's related to cash flow and finances, which many people are concerned about. I am confident to continue operating to make us get through this crisis.
''I know that I am not the only one as vicious rumors circulate about others, too. I think now is the time to help each other not stand all over each other.Concerning any overdue invoices, I am still continuing to make no profit every day and am also owed a lot of money by people who are in the same situation. Please kindly wait for a while and let me work smoothly, so I can pay you all.''
DIVER in Distress Two ''This email is in an effort to fix the relationship between me and you. I was hoping, in your reply, that we would be coming to a point to get our problems sorted. After all, I owe you approximately 20,000 baht from a debt which was left to me by my previous business partner.
''My interest to clear the debt is still foremost. But this year, it has been too difficult to clear. This year has seen many losses and I have been riding the big bad wave so that I can be able to get money back to you during this high season. I have tried all year to make it through to this time of the year to be in a position to make corrections, and closing the door on me now just doesn't make sense.''
DIVER in Distress Three ''We should have better cooperation between true Phuket Thai dive boat operators with regular meetings and clear strategies to deal with all foreigners setting up illegal dive companies (More than 500 registered with TAT Phuket) with proxy nominee shareholders, proxy nominee directors and proxy nominee Thai staffs to look like they are Thai-managed dive companies.
''In fact, they cheat us. I understand that Thais do not like to complain to Thai administrations but complaining about hardship we are encountering with unfair competition is not a sin.''
PROBLEMS within the industry in Phuket, Phang Nga and Krabi are exacerbated by the high cost of entry to the Similan and Surin National Parks, the Andaman's prime diving destinations, with an entry fee of 200 baht and 400 baht a day for diving.
The national parks are scheduled within two or three years to become a Unesco World Heritage site and may be required to limit the number of visitors and divers per year.
This would normally apply a brake to the unprecedented expansion within the diving industry, an expansion that has come without customers to justify it.
However, from 2010 businesses in Asean member countries will be able to hold 51 percent of Thai companies, increasing to 70 percent in 2015 and 100 percent in 2020.
Without regulation, this means certain continued turbulence.
This year the local diving industry has also recorded a live-aboard sinking in which seven people drowned. A police investigation provided a single-page report, with no expert review of the cause of the disaster or the lame, late rescue of 23 survivors.
To add insult to injury, an artificial reef of obsolete aircraft, sunk off Phuket with great expense and publicity, was destroyed by fishing trawler drags and strong tides that divers did not anticipate.
Any individual on Phuket who feels excessive emotional distress should call 1667 for help, 24 hours a day.
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Too many dive centers, too many tuktuks, too many tour-counters, too many hotels, too many restaurants...and the list is endless.
When TAT Thailand will learn to control properly tourism related business expansion by issuing or not new business licenses in order that all those already in the same businesses make enough profit to have a decent life.
The too hard competition in tourism related businesses for few hypothetical customers bring up the system of bribes and large commissions to touts or middle-men and at the end it is the tourists who are paying the overprices for services; therefore TAT get the opposite of what they are looking for.
Posted by Whistle-Blower on December 15, 2009 19:15