whats happening ?? a possible War between Tuk tuk and Russia in Phuket this year?? look like Russia want play Ohlala :)

Posted by ratatoee on January 4, 2013 19:12

If Russians have a 49% share in a legally registered company that hires Thais for protected professions like drivers or masseurs, under what law did the local authorities stop them from selling tours today ?

Selling products cheaper is called competition and since Thais have been grossly overcharging tourists for decades, there is plenty of room for prices to come down.

Competition is only going to get more intense when AEC becomes effective. The latest info I read was that it was postponed by 1 year to 2016.

Either way, in a country where corruption buys you a dominant market position, most businessess are ill equipped for fair competition.

Key word is FAIR. Charging 10x prices is not fair and don't run crying to Dad when someone sells your product cheaper.

Blame your own greed. This has been in the cards for a long time and you can consider this the beginning of the end for unabated ripping off of tourists.

At least I sincerely hope so. It will also be a lithmus test for the sincerity of local authorities. Can't wait to see how this unfolds.

Thanks for reporting it PW.

Posted by Andrew on January 4, 2013 19:21

Well for once i'm backing the taxi and tuk tuk drivers. Don't let the Russians take over please. This is Thailand and Phuket is beginning to be taken over by the Russians. No good...

Posted by sateeb on January 4, 2013 19:46

Thai massage 300 bath??? in pattaya 1 hour is 100 bath welcome russian massage

Posted by angelo on January 4, 2013 19:49

I'm afraid there will be blood spilt, before this is over. I don't think thais know just how hard the Russians "play", but they do bring it on themselves.

Posted by Reader on January 4, 2013 20:17

This appears as if it will turn into a win win situation for all of us when all is said and done

Posted by sky on January 4, 2013 21:33

What aboat all russian gogo and russian casino in Patong , Is it legal for russian ladys to work in A gogo ? How mutch do they pay police ?

Posted by geggy on January 4, 2013 21:58

@ Ed

Yes, you are correct. Cut throat competition is not good either.

European LCCs like Ryanair, Easyjet et al are a good example. Package tourism is also one of the usual suspects with documented consequences of the type you highlight.

However I do think that we are currently at the other extreme - the point where as little as possible is offered for as much as possible and any means available, legal and illegal, are used to block competition, regulation and adherence to law.

Russian tour companies may offer insurance only at the cheapest hospital on Phuket but I wonder just what kind of insurance your average Thai tour operator offers ?

If the news reports about accidents are to be believed, most offer none whatsoever. Occasionally the owner foots the hospital bill, suggesting there was no insurance at all.

An investigation into this matter among Thai tour operators would make for interesting reading and give valuable consumer advice and information.

Point being - with competition we get choices, something Phuket currently lacks in many key areas. Eventually market forces will keep the sustainable businessess afloat and others will go bust. As of now, corruption keeps the unsustainable businessess afloat.

It carries the dangers you point out for sure but I'd take that option over the current monopolies maintained through corruption, violence, intimidation and coersion any given day.

Once again, if the local authorities had upheld the law, we would not be in this situation.

Corruption on Phuket is like a cancer, left untreated for a decade, now metastasized to every corner of daily life and the prognosis for the patient is bleak.

The vulchers have arrived.

Posted by Andrew on January 4, 2013 22:09

Its good if the prices go down.But have the russians here is bad for everybody.So take them away from phuket, its the worst season ever, people run from phuket bcs of russians....

Posted by tommy on January 4, 2013 22:18

People seem to mix up two recent articles here at PW. This one is about tuk tuk drivers not liking the way Pegas operate, that is, they include packaged tours around the island, like a free island tour on the first day after arrival, in order to sell more tours later. Russians are mot very well travelled yet, so they are very much in the hand of the large operators like pegas, and turn to them for their tour needs. They don't wonder outside their hotel and book tours or taxi trips at small counters because the can't speak much english and the tuk tuk drivers likewise don't speak russian. same story with chinese tourists. There is nothing illegal going on here, just inexperienced tourists. It will take some years before the market matures in these countries to the point that they start becoming more experienced and "smart" travellers. All major markets, including the european ones, went through this exact phase, but the stage was not Thailand but rather Spain, Greece and Italy. These days Euro travellers usually don't book full or even halfboard, but eat out every day, and they also buy tours and services from local operators and tuk tuk drivers. This situation might not be ideal (to some) but there is no crime being comitted here. The russian taxi drivers though are a totally different matter and of course illegal. But that has got nothing to do with Pegas or other operators catering to russian, chinese, korean and japanese tourists. I can guarantee they use thai van/bus/luggage truck drivers and localguides and so on, and not russian, korean or chinese ones.

Posted by christian on January 4, 2013 23:13

Plus,

Is there a law against Russian owned businesses selling massage services and souvenirs? I mean, if they set up a company with all the share holder rules in place, why not? I don't get the complaints coming from the tuk tuk peole sometimes..Seems they just want to block out any competition, legal or not.

Posted by christian on January 4, 2013 23:17

Yeah, I agree - I am not sure Thais have any idea how hard Russians can play a game once they got into business... anyway, I am also with the Russians on this one. In Pattaya 1 hour massage is 100 baht, in Chiang Mai 120 baht, why should anybody pay 300 in Phuket? It is not better here and actually my impression is that prices increased while the service standards are going down daily.

Posted by Jakub on January 4, 2013 23:27

"A souvenir (from French, for a remembrance or memory")

souvenir to remember a massage?

must be a hellaofa massage

Posted by Mikey on January 4, 2013 23:27

So, all Thais reading this. Stop your scam business, with Tuk Tuk and Jet skies. You have ripping of innocent tourists for decades. Now is time to change your style. Restaurants, Hotels, discos, bars etc, they all understand the common rules.
But the Tuk Tuk drivers and Jet skies scammers have always been Phukets big problem. .

Posted by cliwe on January 5, 2013 02:21

If Phuket does not go by the letter of the Law Now and make sure all Russian Business are 100% in order, the Island will lose its charm in less than 5 yrs.
It will be overrun by Russian stores and the Mom and pop stores by Thai will not exist. Russians will buy the property and only rent to Russians and there goes the Island. That Is The Facts !!

Posted by John on January 5, 2013 05:00

We are not talking about hard working russians coming in to take a little business here and there.
We are talking about Russian Mafia underworld moving in to take a cut of the Thai Mafia business...
Its a lot deeper than a lot of people think, this money is moved back up the chain to bosses, in return the people working have security from higher powers...
This will not end good....

Posted by azz on January 5, 2013 06:05

What aboat all russian gogo and russian casino in Patong , Is it legal for russian ladys to work in A gogo ? How much do they pay?

@ Geggy not sure how factual this is but someone had told me the Russian go go girls do have a work permit and it classifies them as "entertainers"

Posted by sky on January 5, 2013 07:11

a lot of comments on here for nothing !! guy's!! This will Remain same for phuket for the next 100 years!! rule will not change cheers

Posted by ratatoee on January 5, 2013 08:09

In Chiang Mai, the price of 1 hour of Thai massage has still not risen above 75 baht in some places, including a very excellent place I frequent. 300 baht in Phuket?!? Wow, that place is overpriced!

Posted by Chiang Mai on January 5, 2013 09:42

The door sticker on the car featured is actually for car and motor bike hire, not taxi. So what the next course of action, protest to close down car and motor bike companies?

Posted by Phil on January 5, 2013 10:42

@Chiang Mai:
Is yours a job or a pastime? Or are you just another sex tourist?

Posted by Pete on January 5, 2013 10:54

i had a Russian girl spit in my face 2 nights ago in Bangla rd while walking with my sister for no reason what so ever, not nice

Posted by disgusted on January 5, 2013 13:24

Its not often I agree with the blockades that the Thais often do in response to things they deem unfair but on this occassion I am fully behind them. If the Russians are not controlled now they will make it more difficult for all expats in Phuket

Posted by Paul on January 5, 2013 16:55

Andrew correct about lack of passenger liability insurance by Thai tour and "Taxi" operators. I was recently rear ended by a "Taxi" in Patong,(a 20 year old Toyota) with no insurance of any kind. The driver who had just pulled out from his "Taxi rank" was as drunk as a monkey, but agreed to pay for the damage. When I returned as agreed to the "Taxi rank" (the 100 metre stretch of road appropriated by the "Taxi drivers" the following day, he was again out of his brains. He gave me 3000 baht and then drove off with some japanese passengers.

Posted by chrisg on January 5, 2013 19:04

This is a turf war, simple as that. Personally I expect it to get a bit nasty. But exciting as well. A bit like the alligators in the Everglades of Florida and the Burmese pythons which were introduced. Apparently the sport is spectacular.

Many years ago Russian brass tried to operate in Patong. In a planned move, they were on the street in numbers. Until the local damsels decided 'no more', they emptied out of the sois and bars, hi heels in hand and there was blood on the street. Same thing is coming ....

Posted by geoff on January 6, 2013 03:30

Quote - omeone in the audience calling out at one stage to a police officer with the microphone: ''Money makes you blind.''

Well I wonder who has been paying the Police to protect the Tuktuks for the past 20+years?

The Tuktuks are far worse than Russians in the way business is run. I would rather have a Russian driving my Taxi than a local Tuktuk driver.

Most people who have commented here just believe - Oh No the Russians are coming - and if you look at Pattaya as an example as some people do.

Pattaya is well run compared to Phuket, cheap 24/7 pickup taxis, cheaper drinks, cheaper food and ALL at better quality than Phuket "night life areas". Because this is not a debate about the Real Phuket, this is a debate about people not enjoying their Tourist Destinations, such as Kata, Karon and Patong.

Posted by Tbs on January 6, 2013 10:16

As a labor lawyer I can say the current state of affairs is an indication of the level of systemic corruption and vested interests of Government officials and the arrangements in place for Russians to operate such businesses has trounced the right of Thai people to earn a living just like any ones else in the world. The sad thing is, Russians do give little back, are aggressive and rude. The resent building is not new here or in any jurisdiction and any protest or worse is a measure of economic protection by Thai people and in no way different to the same any in other democratic society under the same circumstances.

Posted by James on January 6, 2013 13:45

Guys listen to what Paul, Sateeb, Reader, John, Azz are saying I've seen what they have are doing to other places in the word Dubai, Goa, stop it now before it's too late

Posted by Triker on January 7, 2013 08:48

I am completely against the taxi and tuc tuc mafia in Phuket ripping off every tourist and Thai .but you don't want the Russian mafia taking over or all hell will be let loose. They have been operating in Patong a good while, now Kata/Karon. How long till Phuket is full of Russian prostitutes like pattaya is ? They are there, for Everyone to see.
Why is this being allowed ? How can it even happen in Thailand?

Posted by Elizabeth on January 8, 2013 14:43