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Friday 3 October 2008

Thailand Politics and the effects on Koh Samui

For those of you who noticed, my apologies for failing to issue a Newsletter for September but this was due to an unexpectedly long overseas business trip and I did not have the time or opportunity to create one.

The political situation in Thailand is still not fully resolved although the now ex-Prime Minister Khun Samak has departed the scene to the delight of many but one wonders if his replacement Khun Somchai Wongsawat will fair any better as he is the brother-in-law of ousted Prime Minister Taksin Shiniwatra. He has quite an impressive background on paper qualifying as a Barrister in 1973 and holding posts as Chief Justice in various provinces and serving for nearly six years as permanent Secretary at the Ministry of Justice. His role under the Samak regime was as Minister of Education. However, even a cursory look at his background seems to suggest that he has been accused, rightly or wrongly, of being involved in a number of questionable areas such as when he was a member of AOT board, he was one of the 36 people implicated in the irregularities relating to the controversial Suvarnabhumi Airport luggage scanner purchase. Also one of the main demands of the opposition PAD is that Taksin Shinawatra is brought back to Thailand to answer charges of corruption and it is difficult to see Khun Somchai doing that although he has stated that is a matter for the Courts. Whilst certain sectors of the population seem to have accepted him there is still opposition to his appointment in some areas. Equally there is a growing antagonism to the PAD who are leading the opposition and their actions are seen by many as the cause of drop in tourism to Thailand over recent months due to the wide spread international reporting of their actions such as blocking airports.

What was good to see here in Koh Samui was that, with Phuket and Krabi airports being blockaded, the intervention of a respected local politician persuaded the PAD supporters, who intended to blockade the airport, that they would be doing themselves and the island more harm than good and the blockade was avoided. Nevertheless the demonstrations in Bangkok being reported in the media world wide, as stated above, and the airport blockades have had a negative effect on tourism with many hotels reporting cancellations as far ahead as Christmas. This is unfortunate as the situation on the ground is really very peaceful and apart from organised protests in the usual places (Nathon sea front and Chaweng Lake) life goes on here undisturbed. The protests may at times be loud but there has been no violence. I can see a lot of good deals becoming available in the hotels over the coming weeks.

The reality is in my opinion that tourism is being affected more by higher airline fares due to the price of oil and the overall world economic situation more than the political issues here as anyone who knows Thailand understands that the demonstrations, that are so widely reported, are very localized and tourists are not usually affected if they stay out of those areas. The airport situation was an exception but even those involved have now realised they did themselves more harm than good.



For those of you who may at times need Consular Advice, “Big Dave” Covey who has for a couple of years been the Honorary British Consular Representative on the island has at last received official accreditation from the Thai Foreign Ministry. Congratulations Dave!

Supermarkets and Accidents on Samui and Phangan

This blog should have been published at the beginning of August but I had to leave on an extended overseas trip and did not get back until early September.

There is an interesting article in this months Newsletter about Koh Phangan, an area I generally stay away from, but which highlights the issue of large international chains and their effect on the local economy. There were many objections to Tesco Lotus coming to Koh Samui and even more when they were followed by Makro and Big C. Yet anyone who goes to these stores will see that they are frequented predominantly by the local Thai population, many of whom own small supermarkets around the island and buy at wholesale prices and continue to make a living because they can. In the years since Lotus Tesco opened I have not been aware of any of the small supermarkets that we used previously closing so the fear was unfounded. Now they have Lotus Tesco on Koh Phangan and the effect appears to be dramatic. Competition has driven prices down and the local supermarkets are having to compete. There will undoubtedly be critics who decry the “commercialisation” of the island but why should the population there be denied better choice and lower prices. Word has it that the stocks sold out so quickly in the first few days that many shelves were soon bare. That is a problem that I am sure Lotus Tesco will get round as it is part of the logistical supply chain problems they experienced here on Koh Samui when they first opened –and still occasionally have here – and it will take time for the supply/demand equation to settle down. In my view the bigger threat to the local supermarket is the increasing spread of 7-11’s and Family Mart stores which are appearing on every corner. Not necessarily cheaper, but being open 24 hours and with a steady inventory, good supply chain, air conditioning etc. are more appealing than some of the older supermarkets. Some have taken up the challenge such as P&P in Bangrak which has identified local foreign demand and offers European foods not easily available elsewhere.

Last month I reported on the accident I had and the importance of having good accident and medical insurance whether as a resident here or as a tourist. I came across this “Blog” which makes the point again.

“Having travel insurance which covers every eventuality when you are abroad is not cheap but it is a prerequisite. I know from personal experience - my son was on his ‘gap’ year, travelling round the world and had got as far as Thailand where he had a horrific accident on the motorbike he had rented. To cut a long story short he was picked up from Koh Samui by a private jet and flown to Bangkok, as there were no hospitals that could deal with the extent of his injuries in the south of the country. He was on the slab for 10 hours - every bone in his head had been broken and there he stayed for at least two weeks - the bill - zero, de nada, rien.
The message for me is clear - this is the case of the well spent pound, dollar or euro - just do it.”


Now the other point that arises from this is that you should check your policy for exclusions. Many may specifically exclude motorbike accidents and certainly in Koh Samui, the frequency of those is alarming. I still wonder at the mindset of the tourists in particular (residents who do this should know better) who ride around without helmets and with young children on board. Traffic here is quite heavy now and the general standard of driving leaves a lot to be desired. It does not matter how good a driver you are, how careful you are, you cannot control the actions of others. Samui has many other pitfalls for the unwary visitor. Sand on the road is the same as ice and can have similar consequences. Palm fronds and coconuts falling from trees, potholes in the road, dogs running wild, all add to the dangers that will be encountered. My advice? Forget the bike. Hire a small Suzuki car and even then make sure your insurance is up to date and adequate.