Thailand 'Elite' Card program.

[Admin]

Thailand Elite card holders reassured 
The Nation: 17 Jan 2009
Thailand Elite cardholders reassured
 

The Tourism Authority of Thailand and Thailand Privilege Card insisted yesterday that privileges for Thailand Elite cardholders remained unchanged, despite a recent mailing to members that benefits would be done away with completely.
About 2,500 members across the world recently received a letter, informing them of the cancellation of the privileges. This led to suspicion that the card-issuer - Thailand Privilege Card (TPC) - would soon close its business.

Jutaporn Reungronasa, deputy governor for marketing communications at the Tourism Authority of Thailand (TAT), said the authority, which owns the card company, had never heard about the suspension of TPC members' privileges and had no intention of halting operations.

"As the owner of TPC, any important decision must be approved by the board of the TAT. This latest issue is probably something [stirred up] from outside," said Jutaporn.

A representative of TPC said the company was running as usual without any sign of suspending the privileges.

The same person said the mailing was possibly planned by people related to politics.

"The company was set up five years ago by ex-prime minister Thaksin Shinawatra. However, it was criticised for a lack of transparency in its internal management as well for poor performance. It faced the prospect of closure several times two or three years ago," the representative said.

According members of TPC, they received a letter a few days ago stating that all privileges had been suspended. The letter also informed them that because their "elite" status was being removed, they would be required to adjust to the new circumstances as normal individuals.

Moreover, those members who had benefited from special five-year visas were urged to make fresh visa applications as general visitors.

All TPC members were also told theysaid members would not be eligible for a refund of their membership fee.

Last year, TPC started offering a lower membership fee to boost sales. There is now a special price of Bt2 million for foreigners, down from the original Bt3 million.

One membership is valid for two persons, with a limit on spa and limousine use of 24 times per year. TPC hopes to increase its membership this year from 2,500 to 2,900.

Last November, TPC laid off 23 staff to reduce operating costs.

The company is managed by Suraphong Triumchanchail, who is chairman and acting president. It is inviting candidates for the presidency.

[Admin]

Thailand 'Elite' Card program in tatters 
Bangkok Post: 26 Jul 2009
WWW.BANGKOKPOST.COM

Thaksin's dream of luring the elite lies in tatters

It started with a flourish and some wildly optimistic predictions but it looks like it may end with a whimper

It was one of the most ambitious plans initiated under the Thaksin Shinawatra regime and intended to give birth to the country's richest state enterprise.

In November 2003, Mr Thaksin proudly presented 80 gold Thailand Elite cards to international VIPs and eminent people, including Japanese trade chiefs and US banking and financial supremos. The cards promised fast-tracked immigration, discounts at luxury resorts and golf courses, and many other perks.

The optimistic estimates to attract the world's wealthy were mind-boggling; a million subscribers to generate a trillion baht in revenue.

But early signs were not encouraging. After four months, a meagre 400 memberships had been sold, barely a dent in the 100,000 target for the first year of operation. Panicky officials talked of targeting China's nouveau riche, and predicted they would attract 30,000 Chinese within 12 months.

But six years later, the total number of members is a risible 2,570, and the Thailand Privilege Card Company (TPC), set up by the Tourism Authority of Thailand (TAT), to run the scheme has a crippling net loss of 1.4 billion baht.

Next month, the Cabinet will be asked to decide the company's fate. The TAT is due to decide this Wednesday on whether the company should be closed, privatised, form a joint partnership with the private sector, or, come under the control of the TAT.

Reality has overtaken fantasy. "It was unrealistic in the first place with such an ambitious target of one million members," said Udom Metatamrongsiri, acting president of TPC.

The scheme was developed by TAT staff under the directive of the Thaksin government, which hoped that it could help generate income at "the rate of a leap of a frog", according to an internal company report.

Under the scheme, members obtained five-year visa entry, which was renewable once it expired. They also had access to unlimited privileged leisure services which included golf, spas and VIP transport in BMW 7 series vehicles.

"In principle, we cannot totally say that the scheme was unfeasible in the first place," said Mr Udom, a board member who took over the presidency earlier this year.

"I think the first generation of the company's executives would never think that what they offered as secondary benefits would become the company's big burden."

In the first year of operation, the company sold 139 Elite Card lifetime memberships. However, the number so far this year is a measly two. The total memberships equate to 2.5 billion baht in revenue, which has not all been declared in the company's annual financial statements. By law, Thai companies are permitted to spread income figures over a 10 year period, a practice which is stated in TPC's annual report (see graphic).

So how is it meeting financial commitments with companies involved in the scheme? According to Mr Udom, TPC has to pay every service fee to tourist facilities that its members use, including the golf courses, spas and luxury transport. This costs up to 100 million baht a year on average.

For example, the company pays 4,600 baht for its members to a play a round at one golf course. So far this year, there were 5,300 visits to golf courses by its members and 11,200 spa visits. Only 200 applied for the main privilege, renewal of the five-year visa.

Besides the big financial burden from the luxury services, Mr Udom has found flaws in the company's previous management. For instance, it paid some golf courses in advance with amounts of up to 20 million baht.

Another case involves the planned purchase of an IT system for 100 million baht to improve the company's communication services for its members. But there was never a clear explanation as to why the new system was needed, and the new board decided to suspend the project.

Mr Udom admitted that the company has been plagued with transparency problems, and some of its spending is now subject to investigation by the Office of the Auditor General.

A review by Thammasart University's Economic Faculty's Economic Academic Services Centre - commissioned by the company around two years ago - found the scheme would lose 26-60% on each million baht membership fee, based on modelling done on 2006 figures. The review recommended raising the membership fee to 1.8 million to generate a 20% profit on each membership.

But it found positive long-term economic spin-offs from the Elite Card service, as based on interviews they discovered members spent three billion baht in Thailand in 2006 and would invest 21 billion baht in future projects.

After the Democrat-led government instructed the company to review its operations in January, one option that emerged is closure.

If it does close, it risks having to pay back 2.5 billion baht to present members and the prospects of lawsuits if it cannot fulfil its commitments.

Mr Udom said another proposal is joint investment, with private firms boosting capital to run the company. The other option is that the company is transferred to the TAT, and run as an internal department.

"I don't know which will be picked by the government, but the first option [closure] is unlikely, as this will yield only bad results," said Mr Udom.

Mr Udom said he had cut down the company's costs for this year to 200 million baht. This has angered card holders as a number of premium leisure services and venues have been removed. The membership contract carries a clause that the company "reserves the right to change, revise, or withdraw the service without advance notice".

According to the major agent selling Elite Card membership, only about 12 golf courses are now available to members, down from 35 at the beginning.

Soontaree Chanprasit, president of Aktiv Holding, TPC's sales agent, said the scheme had run into problems partly due to inconsistent government policy.

She said whenever there is a change of government, the scheme is subject to review, and this affects the sales of cards and services for members. Currently, the situation is at its worst, as the company's board has suspended operations, including the sale of new memberships.
The cut in premium services have also prompted many complaints to her company from existing members. Up to 200 complaints have been reported by TPC so far this year.

One card member wrote to the company expressing that he felt sorry about what had happened to the scheme.

He said he personally could see how it should be improved, but "it might be too late now".
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RELATED ARTICLE

Thaksin: I will return

Former prime minister Thaksin Shinawatra told his red-shirted supporters that he would soon return to Thailand to help settle the pressing problems of the country.

The declaration was made on Saturday afternoon while Thaksin was phoning in to address his supporters gathering at Bua Kwan temple in Nonthaburi province, where the one day in advance birthday party for the ousted premier was held.

Thaksin thanked the red-shirts for the party and told them to be patient and wait for his return. He was confident that he would be able to come home to lead the new government in dealing with various problems of the country.

Earlier, former PM’s office minister Jakkrapop Penkair had phoned in to givie moral support to the red-shirts for their attempt to fight for a full democracy. Mr Jakkrapob claimed that the current political turmoil was stemmed from the September 19, 2006 military coup.
 

 
 
 
 
 
 

[Admin]

Thailand Elite Card decision on Nov 17 
Bangkok Post: 6 Nov 2009
Elite Card fate to be decided on Nov 17

The cabinet will decide the fate of Thailand Privilege Card (TPC), the operator of the Thailand Elite Card, on Nov 17.

Chumpol Silpa-archa, the Tourism and Sports minister, said it would be more appropriate to close the embattled company and transfer its operation to the Tourism Authority of Thailand. However, it was possible that TPC could form a joint venture with a private firm to continue operating the business, he said.

The Thailand Elite Card was launched by former prime minister Thaksin Shinawatra in 2003 to attract wealthy tourists and businesspeople. Lifetime membership prices were set at one million baht.

It promised fast-track immigration, long-term property leases and discounts at luxury spas, golf courses and hotels. Mr Thaksin predicted it would attract one million cardholders by 2008, but to date it has drawn fewer than 3,000.

www.bangkokpost.com/business/economics/26942/elite-card-fate-to-be-decided-on-nov-17

[urleft]

Glad I have put off getting this.    But I think there was some visa benefit associated with it that may have made it worthwhile.   

[Admin]

Elite Card on the auction block
Published: 17/11/2009 at 03:37 PM
"Bangkok Post" / Online news: Economics

The cabinet on Tuesday assigned the Finance Ministry and National Economic and Social Development Board to draft conditions for the auction of Thailand Privilege Cards Co (TPC), operator of the Thailand Elite Card scheme, deputy government spokesman Vachara Kannikar said.

Mr Vachara said the intention is for a private firm to take over the scheme, which was launched by the Thaksin Shinawatra administration. The drafting of the auction conditions would be done within a month and the auction completed in two months.

He said Prime Minister Abhisit Vejjajiva told the cabinet that some private firms had shown an interest in buying TPC and taking over its debt, on the condition that the government waive visa regulations for card members.

If there was no sale of TPC to the private sector in three months, the government would dissolve the company and transfer its membership to the care of the Tourism Authority of Thailand. No new members would be accepted, the spokesman said.

The cabinet also assigned the Finance Ministry and TAT to check the status of the existing 2,570 Thailand Elite Card members, since 795 of them were believed to reside in Thailand in contravention of the membership rules.

The Thailand Elite Card scheme was launched by the Thaksin government in 2003.  The cards promised fast-track immigration, discounts at luxury resorts and golf courses, and many other perks.  The scheme was intended to attract the world's weathy and generate high revenue.

But after six years, there are only 2,570 members, and the TPC, set up by TAT to run the scheme, had a crippling net loss of 1.4 billion baht.

[Admin]

Thailand Elite Card survival strategies 
Bangkok Post: 24 Dec 2010
Elite Card proposes survival strategies

Thailand Privilege Card Co (TPC), the loss-ridden operator of Thailand Elite Card, will present three proposals for approval by shareholders on Jan 5 to temporarily resolve its liquidity problems.

The proposals are a doubling of paid-up capital to one billion baht, borrowing from the Tourism Authority of Thailand (TAT), or converting cash totalling US$4.8 million to Thai baht.

If the company exchanged dollars now, it would lose 48 million baht because of currency appreciation, said Pensuda Priaram, president of the TPC committee.

However, Krung Thai Bank, the financial consultant to TPC, suggested it convert the dollars and then reinvest the baht in bonds or other investments to generate returns.

TPC currently has fixed costs of 10 million baht per month and accumulated losses of 1.4 billion.

If shareholders approve one of its proposals, TPC could stay in business while it awaits a legal interpretation from the Council of State of a planned auction for private operators to take over TPC.

If the auction does not draw interest from investors, TPC would be closed but all privileges granted to members would be maintained.

Thailand Elite was launched by the Thaksin Shinawatra government in 2003. The cards, priced at 1.5 million baht each, offer fast-track immigration, discounts at luxury resorts, spas and golf courses, and other perks.

Terms for the auction have been drafted and TPC believes the process can start quickly if the Council of State offers a favourable legal interpretation.

The auction winner must pay 500 million baht to the government, absorb the company's current burdens and employ existing staff for at least one year.

Methavee Tunwattanapong, the acting TPC president, said it had worked hard to cut costs. It will review the status of all 2,566 members and vendors including 65 spas, five limousine companies, eight hospitals and 20 golf courses.

"We must update membership status because some have transferred their cards to others. We will review contracts for each vendor as well," she said.

http://www.bangkokpost.com/business/tourism/212903/elite-card-proposes-survival-strategies

[Admin]

Elite Card operator is dealt a new blow 
Bangkok Post: 27 Jan 2011
Elite Card operator is dealt new blow

The loss-ridden operator of the Thailand Elite Card has suffered another setback after the Council of State offered an unofficial interpretation that the card's extended visa privileges could not be used in its membership terms of reference.

Thailand Privilege Card Co is now left with only two choices.

The first calls for its 2,566 members to be placed under the authority of the Tourism Authority of Thailand and there be no more members accepted.

The TAT would have to shoulder the long-term operating costs of 108 million baht a year or 9 million baht a month.

The other option requiring the closure of the company is also problematic because of the need to refund membership fees and the payment of other costs estimated at 3 billion baht.

There is also the damage caused to the country's image if the members decide to sue the company.

The chair of Thailand Privilege Card Co's board of directors, Pensuda Phrai-aram, said the company would have to find a way out through negotiation.

''We will speak to members and work out what is the best solution,'' Ms Pensuda said. ''We have studied the points of law. However, we also have to follow the [unofficial Council of State] resolution.'' The TAT board would discuss the case on Feb 23, she said.

The Thailand Elite Card, touted as the world's first national privilege card, was launched by the Thaksin Shinawatra government in 2003. The card, priced from one million to 2 million baht in the past and now costing 1.5 million baht, offers a fast-track immigration service, discounts at luxury resorts and golf courses, and many other perks aimed at increasing tourism revenue.

It had been planned to auction the operation to investors at a starting price of 500 million baht, payable to the government. The buyer would absorb the company's costs and keep on staff for at least one year. Ms Pensuda said yesterday the selling price was now expected to be less than 500 million baht.

In the interim, the company would convert its last cash of US$4.2 million to baht. The company would then have about 130 million baht for use to fund its operations.

http://www.bangkokpost.com/news/local/218397/elite-card-operator-is-dealt-new-blow

[nookiebear]

I wouldn't be surprised if Thaksin is still involved

[Admin]

Elite Card decides to call it a day
Source: Bangkok Post 2011-04-27


BANGKOK: -- The cabinet yesterday decided to close down in 60 days the loss-ridden Thailand Privilege Card Co (TPC), operator of the Thailand Elite Card, the brainchild of former premier Thaksin Shinawatra.

The Tourism and Sports Ministry, whose state agency the Tourism Authority of Thailand (TAT) is TPC's sole owner, was instructed to prepare to compensate the 2,500-odd members should any of them take legal action once their membership is revoked.

The ministry yesterday asked the government to set aside 2.5 billion baht to compensate members and staff once the company shuts down.

Deputy Prime Minister Sanan Kachornprasart said the cabinet turned down the request but asked the ministry to submit details for consideration next week at what is expected to be the final cabinet meeting of this government.

Elite Card, launched in 2003, promised fast-track immigration, discounts at resorts and golf courses and other perks.

With members paying 1 million baht for a lifetime membership - prices later rose to 1.5 million - the goal was to attract a million subscribers in five years for revenue of 1 trillion baht.

But political changes and exaggerated services led to the Elite Card proving a flop, with only 2,565 members from 65 countries in its eight years in operation. TPC reportedly suffers a debt burden of more than 1.4 billion baht.

Battling to survive, TPC two years ago sought cabinet approval to allow private investment in the company. But the request was rejected, as the government would not allow companies to make decisions on visa fees.

Pensuda Priaram, the TAT's deputy governor for tourism products and business, said the 60-day deadline for terminating the company and the card would be hard to meet under the rules.

The TAT must come up with 500 million baht to pay for overdue registered capital to pave the way for termination, and plans to seek the sum from the Budget Bureau.

Prakit Chinamourphong, president of the Thai Hotels Association, said the project should have been shut down a long time ago.

[Admin]

I just happen to see an AD about this kind of visa: ELITE VISA:

Current conditions & costs are mentioned in this link:
http://www.thailandelite.com/visa/?utm_source=bangkokpost.com&utm_medium=banner&utm_term=Thailand-Visa&utm_content=Bangkok-Post&utm_campaign=Thailand-Visa

[dundeemk6]

I'm quiet sure a lot of Isaan expats will use this incredible opportunity for staying unhassled in the kingdom.
  
 

[Tod Daniels]

While there have been "press blurbs" about the Thai Elite Card 'going away', being 'discontinued' and/or 'not accepting new members'. . .

I can assure you they are all just that, "meaningless press blurbs". The Elite Card is still alive and being issued..

I know several people who are on the Thai Elite Card, and one who just got his at the beginning of the year. There are a couple different "levels" which you can purchase and for some it's just far easier than dealing with the hoops that immigrations tries to make foreigners jump thru.

Even since 2013 they've issued a 5 year visa and you can extend your permission to stay at Chaengwattana for 1900baht just like all extensions cost. The thing is you don't do anything, the Thai Elite Team handles everything.

Is it for everybody? Most likely NO. The lowest T/E card program costs 500K baht (plus VAT). However it does work and works like a charm!