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The view from the iconic Club Med across Phuket's Kata beach

Iconic Phuket Resort on Public Land

Tuesday, August 5, 2014
PHUKET: Club Med Phuket, the resort credited with beginning the flow of tourists to Phuket almost 30 years ago, is built on public land that local residents now want to reclaim as the international resort brand's lease expires.

The stylish resort sits on one of Phuket's most desirable slices of property at Kata beach. But the contract for use of the public land under the buildings runs out on September 24 next year.

With exquisite timing, a classic struggle for the resort is likely to break out just as Thailand's military rulers, the National Council for Peace and Order, are conducting a purge to restore all public land to the people, throughout the entire nation.

The beaches of Phuket and the tropical island's foreshores are being returned to nature as the Army erases sunbeds and illegal restaurants.

Just what the general's view is about an iconic resort such as the Club Med Phuket on public beachfront land has yet to be made clear.

What Phuketwan has been told is that the magnificent shorefront property remains public land, but it was leased at the sum of 150 baht per square metre to Club Med in 1985.

Back then, income of about 600,000 baht a year may have seemed a great deal for Phuket's Orborjor, otherwise known as the Phuket Provincial Administrative Organisation.

These days, almost 30 years on, around 600,000 baht in rent annually for the Club Med Phuket property would be viewed as a bargain.

Already letters have been exchanged and the debate is about to break out about the future of the historic resort.

Its prospects as public space or 21st century resort could well be argued at all levels of government between now and September next year.

Most public land on Phuket is reserved for public use, not private profit, as many restaurant and beach club owners have recently discovered.

But the land under Club Med is different.

Back in the early 1980s, the Orborjor asked the Interior Ministry if it could lease the Kata beach land for its benefit, and the Orborjor was given permission - provided the arrangement had the approval of the local residents.

Back then, the residents approved . . . but whether they still approve is an entirely different matter, in a different century, with a different set of priorities.

Phuketwan has been told that Club Med has to negotiate any new lease of the land one year in advance.

The first letter from Club Med seeking to renew the lease through the Orborjor was sent on April 17.

To put the Club Med property in perspective, its importance to Phuket cannot be overestimated. It is reckoned that the opening of Club Med in 1985 was the reason why Thai Air started daily flights from Bangkok to Phuket.

The rest, as they say, is history. At the time, Club Med was the je ne sais quoi place for single travellers to go to enjoy themselves.

Over the decades that followed, those singles returned with their wives and their families. The all-in price is also what separates Club Med from nearly all of its competition.

Few resorts on Phuket or anywhere else set out to keep their guests entertained within the boundaries of the resort and do it so well.

Few resorts have so many staff from all over the world, capable of speaking all the major languages, and more besides.

The original Club Med was a triumph for architect Mom Luang Tri Devakul - better known as Mom Tri - who soon became a household name.

He is regarded as the man who gave the island its early reputation for quality, something that the tourism industry now seeks to regain.

With days now ticking by until the lease expires in September next year, will Phuket's history take a sudden turn in direction, or will Club Med continue at Kata beach under a new lease?

Sadly, having disputes with the locals over land at both ends of the property has not endeared the brand to the people who may eventually decide the future of the highly-prized site.

Of all the beaches on Phuket's west coast, Kata probably still retains the reputation for being the most visually splendid, with Boo (crab) island an essential part of every postcard.

The hint of a public auction of the site would produce massive interest from the world's top brands. A 30-year lease from 2015 to 2045 would attract old money, new money and big money.

What Phuketwan hears is that in the present environment, with local taxi and tuk-tuk drivers being pressured to conform to international standards and with beach vendors being forced to quit their jobs, the local residents simply want to have their say.

The Club Med lease is, for want of a better phrase, the ace up the sleeve for locals under pressure to conform.

That's why an informal meeting between the Orborjor and Kata-Karon residents on Thursday will be viewed with great interest by many people with a comprehensive sense of Phuket - its history, its present, and its future.

Comments

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Pull it down
Plant trees & turn it into a public park for all to enjoy.

Posted by Harry on August 5, 2014 22:28

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Club Med is past its sell by date as it now exists. They have not tried to accommodate any changes including blocking out all resorts on the road behind from direct access to Kata beach. As there is no direct access for anyone to the beach, it forces visitors to hike around either end or be at the mercy of the tuk tuks.

Posted by Logic on August 5, 2014 23:28

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Club Med will stay....because else the orborjor will end up empty-handed as the alternative is to flatten all structures and make a park or something like that. The Club is certainly no eyesore and has over the time brought many quality tourists to Thailand.

Posted by Sailor on August 6, 2014 00:09

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There goes even more quality tourists when this goes ,still that will leave even more room for the cheap nasty accommodation for the Eastern Europeans taking over the mantel as phukets main tourist source great news for the locals bank books NOT

Posted by Scunner on August 6, 2014 06:13

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Imagine what would be there if Club Med hadn't built there, it would be a full row of ugly shop houses, on the west side Club Med has maintained the beauty of Kata beach with its low density construction, the east side could do with some improvements.

Posted by coxo on August 6, 2014 07:33

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Once again we see the weak hand of double standards at play here. Can't anybody make one law equal for all, or do the rich always get their own way? Now is the time to make a level law and punishment policy for all citizens of Thailand. Adhere to the law, or the law will adhere to you.

Posted by Duncan B on August 6, 2014 08:10

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I'm intrigued to know what "local" people are.. how are they defined. I could imagine some non-local (i.e. non-Phukt native) tuk tuks that have operated there for years, possibly illegally, having their say and it basically being very selfish with no thought for the future. That said, with the current climate it would be very hard for the OrBorJor to rent out the land to any resort (Club Med or otherwise) for fear of backlash on favoring big business.

Club Med is the single reason Kata Beach remains pretty and has not become Patong. If that land somehow gets divvied up for many businesses to use then that would be the end of Kata Beach as we know it.

Fingers crossed sensible heads prevail.

Posted by Duncan on August 6, 2014 09:20

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All public land must be given back to the public, that was the decree. In an ironic way, it's very existence symbolizes greed, and corruption for which the new Phuket will surely evolve.

Posted by reader on August 6, 2014 09:27

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The best way would be to get back the land to turn it in public park and remove the beach road to build new ones which will be perpendicular between the second road and the beach with large parking lots along each road for park and beach-goers.

Posted by Whistle-Blower on August 6, 2014 10:31

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I hope it stays as it's not an eye sore, but if they have to vacate, I think we can all imagine what it will turn out like, it will be like a builders yard, with rubbish and rubble lying around, please leave it, it's anything but an eyesore..

Posted by Robert on August 6, 2014 11:08

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Club Med has followed the law and it seems are continuing to in seeking to renew there lease, shouldn't they be offered some form of security on there investment? There are a lot of leases coming up for renewal for the first time throughout Thailand, it will be interesting how this plays out if a precedence is set, it could affect foreign investment in Thailand in the future.

Posted by coxo on August 6, 2014 11:34

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How about Katathani in Kata Noi? A glorious open space before the 'thani was built in 1990 hogging most of the beach front.

Posted by Kaen Phet on August 6, 2014 12:28

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I think ClubMed has had the advantage of cheap rent for a long time and the land should be leased to local Phuket people to run it as a hotel, 50% Thai and 50% foreign resident Management who can run the land as a resort and the profits go to projects on Phuket.

Posted by Fiesty Farang on August 6, 2014 13:59

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No problem with most of the comments about Club Med - certainly not an eyesore - but it would be nice if they 'offered' a couple of right-of-way footpaths through to the beach for tourists in resorts behind, as part of any new deal.

Posted by Logic on August 6, 2014 15:37

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Built legally played by the rules except for the private beach bit, not a eyesore and has a historical interest why not renew the lease was a huge investment all the risk was on their head at the time and benefited Phuket immensely is there thanks to be get out.

Posted by slickmelb on August 6, 2014 16:10

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Even if it will be agreed on to renew the lease, it might come with a price-increase in an amount that might push-off club-med from the property anyway.

Posted by Jakub P. on August 6, 2014 16:16

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I am not sure I have a valid right to comment on this topic has a tourist that visited Kata Beach for the first time this year! I have booked to come back next year.

Looking at the comments on Club Med the fear would be what would replace it in the next 30 years?

Would this become an eyesore has others have commented, then the beach road would lose some of its charm and appeal!

I would agree with The comment posted by: Logic "Regarding right of way footpaths or build walkways. This would then connect Kata Town better with the beach without the need to use mopeds or tuk tuks.

At the beach end of each of these walkways they could then ask Club Med as part of their new lease to build a couple of beach style restaurants which would then allow people on the beach too go somewhere for food, drink and toilet etc.

The walkways would create extra security employment, it could be a condition that these would be given to ex beach vendors. Again the beach style restaurants would have to be rented at a set price to ex beach vendors, with the rental income going in to the public purse.

Posted by Shaun on August 6, 2014 18:03


Friday November 29, 2024
Horizon Karon Beach Resort & Spa

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