Thread: Phuket : Russian Tour Firms 'Banned for Five Years'

Russian Tour Firms 'Banned for Five Years'
Pathomporn Kaenkrachang
Monday, January 24, 2011


Piyasuda Sukcharoen today: Russian companies banned for five years
Photo by phuketwan.com

SIX RUSSIAN tour firms have been banned from operating on Phuket for five years because they were ''zero baht'' agencies, a new committee overseeing tourism on the island heard today.

The Supporting Phuket Tourism Committee listened as Phuket Tourism Business and Guide Registration Office Chief, Piyasuda Sukcharoen, explained that she had already prevented some of the agencies from changing their business names in attempts to continue operations.

Two more Russian companies were having their claims to be allowed to operate checked in Bangkok by an office of the Tourism and Sports Ministry.

''Alien companies can operate legally on Phuket but some of these operators make problems again and again by unacceptable behavior,'' she said.

Zero baht tours involve companies providing everything for tourists - flights, accommodation, tours, meals - and picking up a single payment in their home destination, so Thais and Thailand make ''zero baht'' from the visit by the tourists to Thailand.

Some of the businesses that had been trying to operate on Phuket had already caused problems in Pattaya and Bangkok, she said.

''If we want Russians to come, then these providers will have to be screened carefully to make sure that income reaches Thailand.''

Thai guides protested to Phuket's Provincial Hall administrators back in December about Russian tour companies who came with their own Russian-nationality guides. Thai nominees who signed on as shareholders for companies that were controlled by Russians would face prosecution for fraud, she said.

The new committee represents 60 Phuket organsations. Methee Tanmanatragul, immediate past president of the Southern Chapter of the Thai Hotel Association, was at today's Provincial Hall meeting.

Yesterday he told Phuketwan: ''Zero baht started off 30 years ago with the Japanese, then the Chinese tried it. It's ridiculous. The government knows who they are and all they need is the evidence to close them down. We are not that desperate.''

Khun Methee added, in terms of previewing 2011, that some individual resorts looked set for a reasonable year but generally, room rates were not recovering because there was an oversupply on Phuket.

He said Singapore and Hong Kong were prospering because they controlled new resort development to match market growth. No such controls exist on Phuket or in Thailand.

phuketwan.com

Originally Posted by Mid

that some individual resorts looked set for a reasonable year but generally, room rates were not recovering because there was an oversupply on Phuket.

and yet their room rates are very high,

What do they mean for "zero baht" ? The tourists may have paid the agency for an "all inclusive" but the agency must have paid an hotel or GH in Thailand for the accomodation and meals provided. Or the problem is these tourists are able to escape the sky high tuk-tuk fares from the airport to their rooms and later around the isle ?

Originally Posted by wefearourdespot

What do they mean for "zero baht"

all fees and associated costs are paid to Russian business interests in Russia before the tourists set foot on Thai soil , thus they bring no benefit to Thailand hence zero baht .

Oz has the same problem on the Gold Coast with Japanese , fly on ANA , take an ANA bus to the ANA hotel and shop in ANA shops and the dollars are back in Japan before the tourists are .

Does the Russki Hotel on Phuket employ Russian cleaners and fly in breakfast cereal from the Motherland? Does it require their clients to use non-Thai owned jetskis.

If they aren't wanted, they should take their business elsewhere. Plenty of alternative seaside resorts in Asia.

Sounds a very good idea to me , but not good for Thai economy so i agree it must be stopped .
I only wish the UK had the balls to step up and protect its self.

^ exactly. as the hotel association president says

Methee Tanmanatragul, immediate past president of the Southern Chapter of the Thai Hotel Association, " We are not that desperate.''

its hardly zero baht, more like not enough easy baht.

It is not zero baht... The hotels make money, the food companies make money, the beer companies make money - Thailand benefits again, and again and again. But, the specific tourist industry guides and hangers on cannot scam as much as they'd like; the taxis at the airport can't scam because the Russians provide a coach (with paid Thai driver, paid Thai based coach, paid Thai petrol, etc); ticket touts can't scam because the Russians have their tours arranged (paying Thai national parks, Thai restaurants, Thai food companies, etc); hotel agents can't scam because the Russians have prebooked hotels at block rates (Thai hotels, Thai staff, Thai food and restaurants and electricity and water and phones - the list goes on)...

Thailand benefits, but specific scammers in thr tourist industry are bypassed; that's what these Thai whingers don't like - they are missing out on their cut! The arrogance is beyond belief, frankly...

Some other issues; what's wrong, theoretically, with Russian tourists having a good Russian tour guide cause you can bet that Phuket cannot provide a decent Russian speaking Thai tourguide! What's wrong with the Russians buying mass blocks of hotel rooms at sensible rates? The list goes on...

Thai scammers in high positions complaining and changing the goal posts cause their scams are being bypassed...

Perhaps they fly in Russian ladyboys too, in order to thwart local transexuals

Originally Posted by Bettyboo

It is not zero baht... The hotels make money, the food companies make money, the beer companies make money

Don't forget Thailand's two largest - 7-11's and bargirls.

Thais are soooooo deathly afraid of the rest of the world.

Why anyone would open a business here is beyond me.

^^^Right on the money.

Originally Posted by Bettyboo

The arrogance is beyond belief, frankly...

Agree , I hope the banned firms take their business to Cambo so that greedy Thais lose all the income they had from the Russian tourists they provided to Phuket

Originally Posted by Mid

all fees and associated costs are paid to Russian business interests in Russia before the tourists set foot on Thai soil , thus they bring no benefit to Thailand hence zero baht .

Bettyboo already exaustively replied to this misconception.

At least the Russians go out spending money dont just stay in the hotels, no mention of the Chinese and the Koreans they spend fuk all around the area just come on there package tours never see them out drinking in the bars anywhere around here.

There was one 5 star hotel near here and they had a sign in the rooms saying "we cannot guarantee your safety outside of this hotel" what a load of crap

This is typical of the lazy, stupid, arrogant pricks. Because they can't gouge on hotels, transport, etc., they would rather put the competition out of business.

Well I hope Russia takes offence to any Thais doing business in their country and bans them arbitrarily as well.

Phuket has truly turned into an island full of the worst Thai arseholes. It even makes Pattaya look charming these days.

its a great idea
at last someone is standing up to theses mean ,sour faced ,East Europeans
we got them coming to Britain to work
hardly spend any of thier wages in Britain
leave the day they earn enough to start pay tax that year.
we have pubs shops etc going bust in the areas they have taken all the jobs.





well done Thailand

Originally Posted by Mid

He said Singapore and Hong Kong were prospering because they controlled new resort development to match market growth. No such controls exist on Phuket or in Thailand.

If he ever bothers to actually learn something about the world, he might discover what we all know, singapore and hong kong are richer than Thailand because they are well run, functional societies which provide an environment that has allowed banking and regional business headcorters to thrive off the backs of the cheap low skilled labour in surrounding countries.

Betty boo's nailed it. Everyone in authoughity in puket and pattya have paid for their positions, they use their authoughty to perpetuate the scams and corruption that will in time destroy the cities and the tourist industry. But by doing this they will get a handsom return on the investment.

These all inclusive deals are what's left of the package tours, I know people who use them all e time. They have no interest in the culture or the history of the country, they just want a pleasant week or two free of stress and trouble... In the sun and they don't if it's Thailand or morocco. Seems a perfectly legitimate business model to me.

Brings in all the money that a normal tourist would, I.e the hotel rooms, the service staff, food, drink. It's the local TUK TUK, taxi, local tour companies and the scam shops they feed the tourists into, that suffer. I.e the people who generate the corruption money that feeds up the the chain making the people who run puket rich way beyond their salaries.

I suppose the Thai government might argue that the profits that these all inclusive operators make is never in Thailand and never taxed by Thailand. Well that's life, little different to what happens in the free port factories that Thailand does much to encourage.

Originally Posted by Butterfly

Zero baht tours involve companies providing everything for tourists - flights, accommodation, tours, meals - and picking up a single payment in their home destination, so Thais and Thailand make ''zero baht'' from the visit by the tourists to Thailand.

Some of the businesses that had been trying to operate on Phuket had already caused problems in Pattaya and Bangkok, she said.

Zero baht is the best system for the tourist, minimizes interaction with locals, minimizes thai scams

Probably saves the visitor 50%

Originally Posted by blue

its a great idea
at last someone is standing up to theses mean ,sour faced ,East Europeans
we got them coming to Britain to work
hardly spend any of thier wages in Britain
leave the day they earn enough to start pay tax that year.
we have pubs shops etc going bust in the areas they have taken all the jobs.





well done Thailand

Rubbish. We wouldn't need them there if Britain didn't have millions of benefit scrounging lazy arseholes.

Originally Posted by Mid

Originally Posted by wefearourdespot

What do they mean for "zero baht"

all fees and associated costs are paid to Russian business interests in Russia before the tourists set foot on Thai soil , thus they bring no benefit to Thailand hence zero baht .

Oz has the same problem on the Gold Coast with Japanese , fly on ANA , take an ANA bus to the ANA hotel and shop in ANA shops and the dollars are back in Japan before the tourists are .

But let me guess all these ANA businesses employ local staff (in as much as any hotel does). Its the tax avoidance by running the local businesses at cost and not paying any local taxes on profits that's the real issue. well that's a legal issue; because that kind of thing is illegal in quite a few countries.

Didnt think that farangs could do jobs (ie, tour guiding) that thais can do?

saw them ruskie guides marching a herd round the the stone park in patts recently, whats that all about then eh?

Originally Posted by hazz

But let me guess all these ANA businesses employ local staff (in as much as any hotel does).

true .

sounds like they are moaning because they aren't getting their cut or the Russians are not being scammed like all farangs should be,

when it comes to scamming people, I don't think the Thai can match the Russians,

'Alien companies can operate legally on Phuket

Hence the Starship enterprise given it's own landing spot.

Originally Posted by hazz

Its the tax avoidance by running the local businesses at cost and not paying any local taxes on profits that's the real issue.

How can you avoid tax if to have the work permit you must declare a 50,000 baht monthly salary ?