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PM Must Act: Corruption Hurting Business
By Alan Morison and Chutima Sidasathian Tuesday, June 23, 2015
PHUKET: Officials from the neighboring tourist provinces of Phuket and Krabi met with a senior Army officer yesterday to list all problems and see whether solutions were on the way.
Phuket's list included illegal guides, time-sharing, latex shops, hillside quarrying, ''black'' illegal taxis, encroachment in rubber plantations and the new beach arrangements.
The two issues that did not make the grade - corruption and the jet-ski takeover of Patong beach - would top any list compiled by Phuketwan.
We believe that both of these problems remain out of control and are growing worse.
Virtually all bars and nighttime venues in Patong, struggling for survival through a lower-than-normal low season, are still being asked to make illegal payments so they can stay open until 2am, or in some cases even later.
Last week, one figure in the Patong entertainment business told Phuketwan that it was time for Prime Minister Prayuth Chan-o-cha to be invited to Patong to discuss in person with locals the huge amount of corruption that goes unreported on Phuket.
''We desperately need a corruption-free model,'' Phuketwan was told.
''Those of us in business are suffering a downturn - yet we are being asked to pay out more, under the table. It can't go on. We can't go on.''
Another Patong venue owner said: ''We are caught between the problems we all experience in making a loss if we can't open late, and big, big trouble if we seek to put an end to these corrupt payments.''
Phuketwan understands that the average bar in Patong pays out about 4000 baht each month to stay open late, with larger venues being asked for ''considerably more.''
Smaller bars are also sometimes targetted by individuals, outside the regular corrupt payments system, Phuketwan was told last week.
There are hundreds of bars in Patong. The same requests for monthly payments occur in Karon, the adjoining west coast destination to Patong, and at venues in Chalong, further south.
Tourists who get into trouble on Phuket sometimes are extorted for large amounts to have their passports returned.
Dishonest lawyers have been reported lately to sometimes conspire in these rip-offs.
However, it's the general, widespread payment made to stay open late that is causing the greatest pain in Patong, Karon and Chalong at present.
''The difficulty is that when the Army took over last year and the Patong entertainment businesses were asked by the military whether corrupt payments were being made, fear took hold and they all denied payments were being made,'' Phuketwan was told.
''Now, 12 months on, they are paying the price for telling that lie - in more ways than one.
''Now, many wish the Army would react and the Prime Minister would come to Phuket and crack down on all the corruption.''
Many guesthouses in Patong are also struggling to make ends meet.
Substantial numbers of regular customers, put off by the changes on Patong beach which saw umbrellas and sunbeds banned, are no longer making the west coast hub their regular haunt.
Instead, some Patong and Karon guesthouses are relying on taxi and tuk-tuk drivers to bring in customers on commission.
A gueshouse proprietor charging 700 baht a night will pay a taxi driver 100 baht per night for a customer, so that if the guest stays for a fortnight, the driver earns 1400 baht.
With tourist numbers in low season well down on normal numbers, a grim struggle for survival is taking place in Patong.
Yet outrageous commissions and bribes are still being asked.
Nothing was mentioned yesterday about Phuket's endemic corruption or the takeover of Patong beach by the jet-ski operators when Lieutenant General Prakarn Cholayut, Commander of the Fourth Army Region in Nakhon Si Thammarat, listened as senior officials listed the problems of Phuket and Krabi.
The meeting, at the Department of Disaster Prevention and Mitigation offices in Phuket City, discussed the progress being made in the problems that were listed for Phuket.
Krabi's list was shorter: encroachment in plantations and among palm oil groves, the prospect of a new coal-fired power plant and whether human traffickers might possibly be using the province to do business.
The lieutenant general would have headed back to base yesterday with the feeling that progress was being made on the key issues in both provinces.
Phuketwan suggests another visit to discuss a more complete list of Phuket problems relating to tourism would be in order, quite soon.
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Comments
Comments have been disabled for this article.
How long has payment corruption been going on? Years and years since the beginning of time here....Understand everyone that it doesnt matter who is running or ruining this country..it will never change as long as certain people gain from it...Phuketwan can write as many articles on it as they want and voice all the complaints but it is here to stay
Posted by
sky
on
June 23, 2015 11:47
Editor Comment:
Doomsaying, sky, changes nothing. The only certainty is that change will come, for better or for worse. You either support change and offer intelligent suggestions or acquiesce with a system that is destined to fail in the 21st Century. I suggest comments that don't add value are a waste of your time, my time, and Phuket's time.
"It was time for Prime Minister Prayuth Chan-o-cha to be invited to Patong". All very well but we know it would be just the usual obsequious officals churning out a dog and pony show glossing over what is really going on. Just the same as happens in most countries when senior officials and politicians visit- BS baffles brains.
As for staying open late would it not be better to encourage people to go out earlier. If the bars make their money and close on time the hits for payments dry up. Why does a certain disco at the top of Bangla need to be open til 6 am? 'But I am on holiday' is no justification to drink til dawn.
Open within the licencing hours, close at the end of then and those with their hands out are stymied- its not rocket science. The greed of the past is now starting to bite people in the backside and they will get little sympathy.
Posted by
Mister Ree
on
June 23, 2015 12:01
Editor Comment:
The ''come earlier'' argument means a change of habit for people who can stay out late at home. Think about it for a minute and you may realise for yourself how ridiculous it is without needing to be told.
Well written. It is high time Phuket's problems come to light, but I do not think there are many guest houses, which can get 700 b for a room today.
Room rental is one of the few business here, which works under the conditions of free market prices.
Now it is easy to get a room for the same price as a whisky and a lady drink on Bangla Rd., so there is not much left for the host to pay touts, rent, maintenance, taxes, staff, electricity, water, internet etc.
Posted by
Sherlock
on
June 23, 2015 12:17
Nothing will be done as too much money is flowing up the tree
Posted by
Tamvong
on
June 23, 2015 12:18
Editor Comment:
Once the roots start to rot, the tree falls.
Simple solution if everybody could stand as one, close down Patong for two weeks. No bars, no entertainment and no backhand payments. That would highlight this to the world. Actions speak louder than words, especially empty words spoken by those in charge here.
Stand up as one, rise as one and let the world hear your screams. Maybe they might even be heard in Bangkok.
Posted by
Duncan B
on
June 23, 2015 12:30
I find it rather hilarious when those who usually benefit from corruption are suddenly up in arms when it swings to work against them.
Where were these people protesting against corruption when business was good and higher profits were made by being allowed to break the law by paying bribes ?
Hypocritical, selfish rubbish.
Posted by
Herbert
on
June 23, 2015 13:43
When I'm on holiday, I go to sleep when I want. I need nobody dictate to me.
Quit simply the curfew, easily. And no one can demand more payments.
Posted by
steve
on
June 23, 2015 13:56
Why do you want that senior officials speak to Lieutenant General Prakarn Cholayut, Commander of the Fourth Army Region in Nakhon Si Thammarat about the large corruption and jet-ski/parasailing businesses? They do not want to shot into their own feet!
Posted by
Whistle-Blower
on
June 23, 2015 14:47
In many ways Phuket Wan is preaching to the converted
I rarely see any mention of malpractice in Phuket in the national press such as The Bangkok Post and The Nation
Is it not possible to have the problems in Phuket published nationally, frequently ?
Posted by
Paul
on
June 23, 2015 15:31
Editor Comment:
One of the local English-language newspapers is aligned with The Nation, the other with the Post. It's probably just a matter of time before one or the other provides their colleagues in Bangkok with a thorough coverage.
Hundreds of bars are being extorted so why not get a % of those bars set up cctv cameras and film the extortions.
Then take the films to the highest authority and name and shame the criminals?
Posted by
Jos
on
June 23, 2015 15:58
Editor Comment:
We understand the placement of security cameras is a sensitive issue.
Ed..I admire your desire to remain hopeful that something will change...but as with many other subjects concerning ripoffs, jetskis, parasailers, tuk tuk garbage and police bribes...you can continue to look through rose color glasses....This nonsense won't change...It may be challenged in an attempt to fool the rest of the public that some action is being taken, but the results are always the same..."business as usual"....Please tell me...of all the hoopla concerning any kind of change re' any of the above things I mentioned...what exactly has changed for the better?....and I ask this question to your other readers as well..what has gotten better?...the jetski situation?, tuk tuks?...beaches?...forced police bribes?...I mean I'm looking around and still see the same ole sh-t!
Posted by
sky
on
June 23, 2015 16:33
Editor Comment:
You're a Doomsayer, sky. With blinkers on, all you see is the same narrow view. I am glad to be able to look at the world, free from myopia. Tunnel vision is treatable, you know.
The beaches generally look great. It will not take much of a nudge from the island's very active honorary consuls to persuade the governor that the ''10 percent solution'' is nonsense. Anyone, including the Mayor of Patong, can see that it ain't going to work . . . especially with the jet-skis there. The problem with the jet-skis is now so obvious that it can no longer be overlooked, even by officials who turn a blind eye. They can't turn two blind eyes or they will trip over the mats. Talk to the right people and it is even possible to identify the law enforcement officer who spends most of his time assisting in jet-ski rip-offs. Get him transferred a long way from Phuket.
Tuk-tuk and taxi fares remain ridiculously high. That will change, however, as Phuket suffers a downturn triggered by extortionate costs and the officials realise that every young male who buys a car cannot automatically become a taxi driver. The days of ''jobs for the boys'' are likely to come to an unhappy end . . .
All that needs to happen, sky, is for you and other more aware expats to tell the military authorities about your discontent and your realisation that the graft and the intimidation will eventually be halted by good government. Simple, eh?
It's also worth noting that both the roads and the beaches have never been safer, and that serious crimes of violence against expats and tourists have been obliterated. But you didn't notice that, eh? Surprise, surprise!
@ Jos. The money are not usually picked up at the bars but by contact men on other locations. Sometime it happens but then by so called "security men" or "collectors". I have seen a lot of these men "live" but also on pictures in PW and other media and then in company with local Thai company owners
When it comes up to transactions on higher levels it is often done in so called "events" which in them self can be full of pleasures.
I tell you though, do not mess with the "security people" cause they are paid for "protect and serve" and all of Phuket people know that.
People are scared, that is it.
Posted by
A Joe
on
June 23, 2015 16:36
I recently walked through BangLa during the day.
Did I get it write that they advertise "cocktail with Thai whisky" for just 300THB - those cloak look bars along BangLa, where some patrons are sitting already at 1pm, and where I never put a foot?
Cocktail with Sangsom for 300THB - it's already the price of Banyan Tree bar.
Obviously the main components of the price are landlords greed (what was about BangLa ownership by the way?) and payments "to 17 agencies" - it is by far not only for after 2am open door, but merely for being there at all.
Posted by
Sue
on
June 23, 2015 16:45
Jos said: "why not get a % of those bars set up cctv cameras and film the extortions."
Wouldn't it be great if you cold buy a phone that could also shoot videos and record sound? Then you could...
Oh! Wait a minute...
Posted by
Smithy
on
June 23, 2015 17:42
Good article, Editor.
My bar used to pay an absurd 10,000 per month. It's now down to 3,000 but when i consulted with my (thai) partner to cease payments altogether, she got scared and was worried that we'd be constantly harassed, even though we pretty much obey the Law, and close by 3 a.m.
We can just about live with a 3,000Bt payment BUT there are far worse things killing tourism on the island, as you've outlined already:
Absurd taxi fares - 200Bt just to go from Bangla to the Holiday Inn for example!
Jetskis taking over the beaches;
Ridiculous rules on where beach furniture can be used.
Add in: swarms of touts everywhere, dual pricing, and outrageous rents for prime property leading to overcharging tourists for just about EVERYTHING and you have a recipe for disaster.
But it's been going for so long i fear the island's reputation has been so badly damaged it's almost beyond repair now.
Only some dramatic and well-publicised intervention can once again lift the island's fortunes. And thai governments are not noted for their ability to take on such a draconian approach.
Posted by
jimbo34
on
June 23, 2015 17:54
@SUE. The ownership of Bangla road area are divided in ownership of the land deeds (with so called pre calculated incomes from every bar and restaurang rental) .I do not know how many now but before it was like 4 owners (Simon was the biggest). Then the land deeds has been sold all around the world to all kind of investors. Nana Plaza bars in Bangkok sold out a lot (give me an offer they can refuse, style) to Bandidos for example.
I would not be surprised if a hole lot of land at Bangla now is hold by Chinese but I do not know but someone is sitting with a very bad hand at the moment when the income is going out of the window.
The rents for bars has gone up steady all over Thailand (with crazy prices for the consumers as a result) and when the landowners get cold feet the system will collapse (it has already done) everybody will save them self.
Posted by
A Joe
on
June 23, 2015 18:01
Editor Comment:
The Russian places were the first to close. The problem is that bamboo and thatch bars with low prices for drinks were once what had wide appeal. Up-market construction and up-market prices without extra value are causing punters to question Patong. The fun factor is going.
Phuket Corruption Hurting Business Badly, Say Patong Bars, Venues
Don't make me laugh too much!
The bars are breaking the law at every turn. They support & encourage prostitution (what are bar fines?) which is of course illegal in Thailand. They want to pay to break every rule there is & complain when there is no longer the money to do so.
[Note: I have nothing against bars - just don't complain because times have changed]
Posted by
Logic
on
June 23, 2015 19:09
A Joe
Thanks for the update.
About private land titles I am curious whether there were any regular irregularities, so that one day authorities will revoke whole set of land titles like they are going to do at national parks.
Was the BangLa area partly public land 30-40 years ago? If so, then such risk always exist., that there were some apparent gross irregular use on converting public land into private that may warrant revocation of land titles by authorities.
There are few places in the world where exorbitant rent lead to loss-making businesses and it is considered as a norm, e.g. New Bond Steeet in London where luxury jewelry brands keep their flagship stores and incur huge losses, because of rent level - but then these loses are actually part of marketing budget.
This doesn't apply to stand alone bars & similar, where every outlet has to be profitable.
Wanted to send a mail on weekend afternoon ,so walked up to 83151 Post office on Thaweewong Rd., only to find it is closed now permanently, then took a look what's going at Soi Post Office - anything what they offer there - environment, food, massages, merchandise is an opposite galactic to Up-Market, but prices , ok still are not western ones, but well on the way. They have to either 1) overhaul and upgrade offerings to fit higher price segment , or 2) drop the prices to fit a clientele that is currently roaming there around.
But even if 1) happens locally, that still will not draw higher segment clientele to the area.
The biggest problem that I see for Phuket to be able to sustain even current positioning , and not go to lower prude segment, is the fact that there is simply too many people.
And there will be even more, giving number of accommodations under construction and grieving affordability for emergency markets.
Currently PaTong even during the day looks and feels like busy Bazaar.
Although Phuket is still ok option fir a long stay, Bazaar-like-vibe everywhere is not really consistent with higher priced segments.
I would never go to such place for short-term holiday, and even , say, 10 yrs ago, when Phuket had few tourists, but still too many for me, and that was factor Nr.2 why I never holidayed on Phuket.
Regardless of state of infrastructure etc., Bazaar grade crowds is major factor for higher paying customers to lose interest for a destination , unless it is strictly very urban, and thus can be crowded. Nobody goes to Phuket with an idea of urban environment of NYC or Venice, to tolerate such crowds.
Number of visitors to Phuket will not be curbed by administrative measures, at least in short-middle term for sure.
So that means simply forget about growth of higher priced segment tourists.
At the same time, it should be acknowledged m since because of better affordability demand for low-priced segment has grown significantly, the brackets of low priced segment went up too - still hierarchy of customers segments apllies, but elements of low priced segments went up price-wise.
What other observed as "deflation" is in fact evaporating of some higher priced segments, with one of major factors being too many people for 1km2 in Phuket, the higher is a segment, the more negative reaction is for that,mthose who gues for cheap, don't complain and tolerate (except those regular visitors who are in low priced segment, whose budgets were affected , they're not happy).
Posted by
Sue
on
June 23, 2015 19:30
The general can go 4 AM in the morning to Patak road in Chalong and see all the bars are open, on distance 500 meters of a police station.
Posted by
Kurt
on
June 23, 2015 20:03
Red all comments with very much interest.
Fact: In countries where is a lot of corruption/red tape, people mostly are living a low standard life, and there is much poorness. I guess anybody agree.
Posted by
Kurt
on
June 23, 2015 20:14
Editor Comment:
A walk through any public hospital shows how in need the health system is, along with education. Money that goes into private pockets could be better used.
If a bar can't pay the 4000 Baht a month expenses then that bar shouldn't be open.
I know people who pay 50,000 a month but still manage to make huge profits.
I am not agreeing with the corruption, just pointing out that your business should be making more money if 4000 is too much.
Posted by
Tbs
on
June 23, 2015 21:01
Editor Comment:
You seem a trifle confused, Tbs. You don't agree with corruption, but if a bar can't pay a bribe of 4000 baht, it ''shouldn't be open''? That's a bit like saying ''well i don't know how these people got on my boat but seeing as how they're here, i might as well beat them and extort them for ransom.'' I do hope you come to your senses soon.
seems to be a case of honest businesses hurting the corruption business.
Posted by
mike
on
June 23, 2015 21:59
Ed, got ya' Agreed
SUE. Your quote "At the same time, it should be acknowledged m since because of better affordability demand for low-priced segment has grown significantly, the brackets of low priced segment went up too - still hierarchy of customers segments apllies, but elements of low priced segments went up price-wise.
What other observed as "deflation" is in fact evaporating of some higher priced segments, with one of major factors being too many people for 1km2 in Phuket, the higher is a segment, the more negative reaction is for that,mthose who gues for cheap, don't complain and tolerate (except those regular visitors who are in low priced segment, whose budgets were affected , they're not happy)".
Really?? I have read that 10 times and I do not get it. We all know about mass tourism and the effect it does on wonderful places on earth. The corruption in Phuket seems to make it more easy for 1 day tourist to Phuket to come in and consume and destroy the island. Is that what you are saying I am with you. If not please explain.
Posted by
A Joe
on
June 23, 2015 22:38
The corruption is strong. I have to correct myself .A lot of the Bars in Nana Plaza has been bought by The Outlaws and not Bandidos.
This might seems like a unnecessary comment but for those who knows about things it is best to stand corrected.
That how fear make people react in corruption issues. Scary.
Posted by
A Joe
on
June 23, 2015 23:06
Did the tourist agency not state only a few weeks ago that the numbers passing through the airport were higher and they were expecting an upsurge in tourist ?? so what went wrong now the scam artists are complaining about losing cash.Same old blame someone else.
Posted by
william
on
June 24, 2015 00:04
The prices are way too high and the vibe on Phuket is getting more hostile every time I visit. People are going elsewhere for holidays and I'm one of them. Change is way overdue. I thought I was one of those "rusted on" tourists that would always come back but I don't feel that I am valued by either Phuket businesses who just seem to want to rip me off and now don't even bother to smile while they are doing it or by the National or local politicians who don't appear to understand the basics of good governance. Keep fighting the good fight Ed, eventually (hopefully) right will win out.
Posted by
pete59
on
June 24, 2015 07:58
Before calling people doomsayers on this matter u should by urself live and practice on the street at night ED and not sit behind a desk listening to ur headghost about how things should be and could be.. the truth is out there... one way to "adjust" corruption to the better would be to change the law according to opening hours. and to enforce safety for tourists make the police walk the street as they should. we got to many traffic police now working on commission. the police are no diffrent to others they make the money where they are and always will .. and BTW, if they polices didnt offer their services it might looked like south America with violence and robberies . we dont live in Aus or Europe after all ...
Posted by
frog
on
June 24, 2015 11:43
Editor Comment:
If you have some point to make, frog, you must have forgotten to make it. No point in Doomsayer blather.
Sue sometimes I'll have a beer in Bangla at 12 if you get up at 5am go for a bike ride run and swim a beer tastes great.then home for Thai time about 1.30 am. Feel sorry for bar owners no used to call them educated Hoons but looks like educated is gone.after all all they do is pay for a holiday then leave
Posted by
Bondi
on
June 24, 2015 13:58
Sue,
Once again you have identified the weight and scale of some of the problems. The same issues have been flagged by many until blue in the face without any score. Opinions are readily available but often ignored.
Posted by
MoW
on
June 24, 2015 15:58
In short: We laugh that a Lt General has to look into 'Phuket corruption/prices/closing times/flooding'. It proofs that the local authorities are not equip ( morally, technically, intellectually) to be a authority. it is so simple.
Posted by
Kurt
on
June 25, 2015 13:16
We stayed in phuket patong for 22 days,we went to relaxed and have a good vacation we thought prices are like bangkok ,but phuket extremely expensive. Phuket has sea around its island but 1piece of fish 20usd .for shopping bangkok is cheaper than phuket! yes corruption is left and right in phuket. We have Big regret for visiting phuket nothing is special.
Posted by
Maria
on
August 7, 2015 13:12
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How long has payment corruption been going on? Years and years since the beginning of time here....Understand everyone that it doesnt matter who is running or ruining this country..it will never change as long as certain people gain from it...Phuketwan can write as many articles on it as they want and voice all the complaints but it is here to stay
Posted by sky on June 23, 2015 11:47
Editor Comment:
Doomsaying, sky, changes nothing. The only certainty is that change will come, for better or for worse. You either support change and offer intelligent suggestions or acquiesce with a system that is destined to fail in the 21st Century. I suggest comments that don't add value are a waste of your time, my time, and Phuket's time.