With the main fund raising activities taking place next week, this is where we are as of today Wednesday 13th February
The sponsored Head Shave has attracted a great deal of attention and we have so far commitments of Baht 128,000 (ca £2,000).
Memorabilia being auctioned on line as follows:
Subject: Steve Collins (The Celtic Warrior)Boxing Gloves - signed
Bids received as at 20.00 Monday 11th February - Baht 15,000
Subject: Enzo (Big Mac)Macarinelli and Joe Callzaghe pair of boxing gloves - one glove signed by each boxer
Bids received as at Midnight Sunday 10th February - Baht 25,000
Subject: Enzo (Big Mac)Macarinelli boxing Gloves - signed
Bids received as at 23.00 Saturday 9th February - Baht 2,000
Subject: Signed Ospreys Rugby Club Shirt
Bids received as at 22.00 Monday 11th February - Baht 5,000
Subject: Signed Leicester Tigers Rugby Club Shirt (2 maybe 3 available)
Bids received as at 13.00 Monday 11th February - Baht 5,000
Subject: Signed England Rugby Club Shirt
Bids received as at 20.30 Tuesday 12th February - Baht 11,000
Subject: Signed Martin Johnson's Boot as worn in the 2003 World Cup
Bids received as at 12.30 Wednesday 13th February - Baht 5,000
Subject: Rugby Football signed by Martin Johnson
Bids received as at 16.10 Wednesday 13th February - Baht 5,000
That gives a total as of today for Memorabilia of Baht 73,000 (ca £1140)
The Golf Day at Santiburi Golf Course Koh Samui on Tuesday 19th February has 26 entrants so far with more to book in. That alone gives a further Baht 13,000 (ca £203)
In addition further funds will be raised at "The Pub" Fishermans Village, Bophut, Koh Samui on 22nd February courtesy of Steva and Lek and Steve will be serving one of his famous Beef Stew and Dumplings!
The sponsored Head Shave and final Auction bidding will take place at Coco Blues, Chaweng Beach Road, Koh Samui on Saturday 23rd February in the presence of Roy Jackson immediate past President of Leicester Tigers Rugby Club and Chairman of the Matt Hampson Trust. Coco Blues will be contributing a percentage of all takings that evening to the Trust.
For further information please email hbonning@kosamuiproperties.com
Wednesday, 13 February 2008
Monday, 4 February 2008
Latest News from Koh Samui
As reported last month in February we are supporting the Matt Hampson Trust. For those of us who have been involved in Rugby at various levels over the years and continue to support it even as spectators, this is a very worthwhile charity and any assistance or help will be much appreciated.
Tuesday 19th February 2008
A Golf Tournament in support of The Matt Hampson Trust will be held at The Santiburi Samui Country Club in Maenam.
Format: Texas Scramble
Fee: Baht 3,200 of which Baht 500 will be donated to the Trust.
If we can get 50 players that would be Baht 25,000 for the Trust.
Friday 22nd February 2008
“A Night at the Races” at The Pub, Fisherman’s Village Courtesy of Steve and Lek.
Come and place a bet on these DVD races with proceeds going to the Trust. .A fun night out for everyone with Steve’s special Beef Stew and Dumpliings, overlooking the beach in Bophut!
Saturday 23rd February 2008
Rugby at “Coco Blues” Chaweng Beach Road, Chaweng, Koh Samui.
22.00 – 24.00 Wales v Italy
24.00 – 02.00 Ireland v Scotland
03.00 – 05.00 France v England
Prior to watching the Six Nations games that night we will have the following fund raising events
Auction of
Signed boxing gloves from “The Celtic Warrior” Steve Collins
Signed boxing gloves from Enzo “Big Mac” Macarinelli
Signed Rugby Shirt from Leicester Tigers Rugby Club
Signed Rugby Shirt from the England Rugby Team
Signed Rugby Shirt from Ospreys Rugby Club
A boot from Martin Johnson which he wore in the 2003 Rugby World Cup.
E Mail bids being accepted now!! Contact me at hbonning@kosamuiproperties.com
The Highlight will be the Sponsored “Head Shave” of prominent Koh Samui Developer Lawrence Fay the Managing Director of Sabai Properties. As of this announcement this event alone has attracted sponsorship of nearly Two Thousand Pounds!
Are we any forward following the General Election last December? Not a lot but moving slowly in the right direction. The challenges and disputes over candidates legitimacy, the legitimacy of the PPP itself and vote buying required hearings by the Supreme Court and a number of new elections where candidates had been “red carded”. A coalition has now been formed and Samak Sundaravej was elected as the new Prime Minister subject to Royal approval. The next step will be the formation of a Cabinet which should take place next week. The coalition government now has 316 seats in the 480-member House. That includes seats from the Chart Thai, Matchimathipataya, Puea Pandin, Ruam Jai Thai Chart Pattana and Pracharaj parties. So now we have to wait for them to get their feet under the table and see what ideas they are going to come up with which effect foreign residents in Thailand. Hopefully we will have a better idea by next month.
From a business perspective things seem somewhat brighter. There does appear to be a real belief that things will now start to get better and that 2008 will be a totally different year to 2007. We have seen an increase in enquiries since the beginning of the year and deal we have been working on for some time now are coming to fruition.
Here is a question for you. Try to answer this before you go and look at an Atlas or Google Earth. If you dug a hole from my office in Chaweng straight through the centre of the Earth – where would you come out and what would be the nearest major City? (With thanks to Dave Pritchard for this little gem. Answer at the end of this Newsletter and anyone who disputes this is welcome to start digging! If you are not on the Newsletter Mailing List, send me an email for the answer hbonning@kosamuiproperties.com )
Some advance notice of a couple of Festivals coming up,
Chinese New Year will be celebrated from 7th to the 9th of February and the Songkran Water Festival will be between 13th and 15th April – although it tends to last a lot longer in some parts of Thailand. More news on that nearer the time.
Tuesday 19th February 2008
A Golf Tournament in support of The Matt Hampson Trust will be held at The Santiburi Samui Country Club in Maenam.
Format: Texas Scramble
Fee: Baht 3,200 of which Baht 500 will be donated to the Trust.
If we can get 50 players that would be Baht 25,000 for the Trust.
Friday 22nd February 2008
“A Night at the Races” at The Pub, Fisherman’s Village Courtesy of Steve and Lek.
Come and place a bet on these DVD races with proceeds going to the Trust. .A fun night out for everyone with Steve’s special Beef Stew and Dumpliings, overlooking the beach in Bophut!
Saturday 23rd February 2008
Rugby at “Coco Blues” Chaweng Beach Road, Chaweng, Koh Samui.
22.00 – 24.00 Wales v Italy
24.00 – 02.00 Ireland v Scotland
03.00 – 05.00 France v England
Prior to watching the Six Nations games that night we will have the following fund raising events
Auction of
Signed boxing gloves from “The Celtic Warrior” Steve Collins
Signed boxing gloves from Enzo “Big Mac” Macarinelli
Signed Rugby Shirt from Leicester Tigers Rugby Club
Signed Rugby Shirt from the England Rugby Team
Signed Rugby Shirt from Ospreys Rugby Club
A boot from Martin Johnson which he wore in the 2003 Rugby World Cup.
E Mail bids being accepted now!! Contact me at hbonning@kosamuiproperties.com
The Highlight will be the Sponsored “Head Shave” of prominent Koh Samui Developer Lawrence Fay the Managing Director of Sabai Properties. As of this announcement this event alone has attracted sponsorship of nearly Two Thousand Pounds!
Are we any forward following the General Election last December? Not a lot but moving slowly in the right direction. The challenges and disputes over candidates legitimacy, the legitimacy of the PPP itself and vote buying required hearings by the Supreme Court and a number of new elections where candidates had been “red carded”. A coalition has now been formed and Samak Sundaravej was elected as the new Prime Minister subject to Royal approval. The next step will be the formation of a Cabinet which should take place next week. The coalition government now has 316 seats in the 480-member House. That includes seats from the Chart Thai, Matchimathipataya, Puea Pandin, Ruam Jai Thai Chart Pattana and Pracharaj parties. So now we have to wait for them to get their feet under the table and see what ideas they are going to come up with which effect foreign residents in Thailand. Hopefully we will have a better idea by next month.
From a business perspective things seem somewhat brighter. There does appear to be a real belief that things will now start to get better and that 2008 will be a totally different year to 2007. We have seen an increase in enquiries since the beginning of the year and deal we have been working on for some time now are coming to fruition.
Here is a question for you. Try to answer this before you go and look at an Atlas or Google Earth. If you dug a hole from my office in Chaweng straight through the centre of the Earth – where would you come out and what would be the nearest major City? (With thanks to Dave Pritchard for this little gem. Answer at the end of this Newsletter and anyone who disputes this is welcome to start digging! If you are not on the Newsletter Mailing List, send me an email for the answer hbonning@kosamuiproperties.com )
Some advance notice of a couple of Festivals coming up,
Chinese New Year will be celebrated from 7th to the 9th of February and the Songkran Water Festival will be between 13th and 15th April – although it tends to last a lot longer in some parts of Thailand. More news on that nearer the time.
Matt Hampson Charity Trust - Koh Samui
MATT HAMPSON TRUST – UPDATE 4th February 2008
With just under three weeks to go to the main evening at Coco Blues on 23rd February this is the latest state of play re the Matt Hampson Trust fund raising.
“Lawrence Fay Head Shave”
This has created spectacular interest and so far we have commitments of Baht 126,000 or £1,957 at today’s rate. The “Head Shave” will take place at 20.30 on the Saturday night 23rd February and for Baht 100 you can have a snip yourself!!
Golf at Santiburi
This is scheduled for Tuesday 19th February and will be a Texas Scramble so chose your partner and get registered with Greg and Alex at Samui Golf. Entrance Fee Baht 3,200 of which Baht 500 will go to the Matt Hampson Trust Fund. The Winners Trophy is being sponsored by Ko Samui Properties, Nearest the Pin on Hole 4 by Lynx Developments, Nearest the Pin on Hole 12 by Santiburi Golf Course. Two sponsors still needed for Longest Drive on Holes 9 and 15.
Race Night at the Pub
Steve and Lek will be hosting a “Race Night” on Friday 22nd February at The Pub in Fisherman’s Village. Steve has also promised to provide one of his famous “Stew and Dumplings”. Horse Races, Donkey Races and possibly even Lawn Mower Races. Come and Pick the Winner!!
Auction of Memorabilia.
Boxing Gloves:
I have one pair signed by “The Celtic Warrior” Steve Collins and these are already attracting attention and bids. So far I have had three bids and the latest stands at Baht 8,000.
I have one pair signed by Enzo “Big Mac” Maccarinelli who will meet David Haye in an all-British world cruiserweight title unification fight on the 8th March in London. No bids as yet.
I have an Ospreys Shirt signed by most of the Squad, many of whom played last Saturday in the Welsh Side which beat England at Twickenham for the first time in 20 years.
Arriving with Roy Jackson direct from Leicester Tigers I will have
Two signed Leicester Tigers shirts
One signed England Shirt
One Rugby Boot from Martin Johnson as worn by him in the 2003 RWC Tournament.
Other items of relevant memorabilia yet to be confirmed will also be available.
We will be offering these on Ebay as well but this does not prevent anyone making bids to me direct by email. All bids will be timed so that if equal bids are received the first counts and I will keep bidders fully informed. Final bids will be accepted at Coco Blues prior to the “Hair Shave” on 23rd February.
For further details please contact me at hbonning@kosamuiproperties.com or +66 81 741 6443.
With just under three weeks to go to the main evening at Coco Blues on 23rd February this is the latest state of play re the Matt Hampson Trust fund raising.
“Lawrence Fay Head Shave”
This has created spectacular interest and so far we have commitments of Baht 126,000 or £1,957 at today’s rate. The “Head Shave” will take place at 20.30 on the Saturday night 23rd February and for Baht 100 you can have a snip yourself!!
Golf at Santiburi
This is scheduled for Tuesday 19th February and will be a Texas Scramble so chose your partner and get registered with Greg and Alex at Samui Golf. Entrance Fee Baht 3,200 of which Baht 500 will go to the Matt Hampson Trust Fund. The Winners Trophy is being sponsored by Ko Samui Properties, Nearest the Pin on Hole 4 by Lynx Developments, Nearest the Pin on Hole 12 by Santiburi Golf Course. Two sponsors still needed for Longest Drive on Holes 9 and 15.
Race Night at the Pub
Steve and Lek will be hosting a “Race Night” on Friday 22nd February at The Pub in Fisherman’s Village. Steve has also promised to provide one of his famous “Stew and Dumplings”. Horse Races, Donkey Races and possibly even Lawn Mower Races. Come and Pick the Winner!!
Auction of Memorabilia.
Boxing Gloves:
I have one pair signed by “The Celtic Warrior” Steve Collins and these are already attracting attention and bids. So far I have had three bids and the latest stands at Baht 8,000.
I have one pair signed by Enzo “Big Mac” Maccarinelli who will meet David Haye in an all-British world cruiserweight title unification fight on the 8th March in London. No bids as yet.
I have an Ospreys Shirt signed by most of the Squad, many of whom played last Saturday in the Welsh Side which beat England at Twickenham for the first time in 20 years.
Arriving with Roy Jackson direct from Leicester Tigers I will have
Two signed Leicester Tigers shirts
One signed England Shirt
One Rugby Boot from Martin Johnson as worn by him in the 2003 RWC Tournament.
Other items of relevant memorabilia yet to be confirmed will also be available.
We will be offering these on Ebay as well but this does not prevent anyone making bids to me direct by email. All bids will be timed so that if equal bids are received the first counts and I will keep bidders fully informed. Final bids will be accepted at Coco Blues prior to the “Hair Shave” on 23rd February.
For further details please contact me at hbonning@kosamuiproperties.com or +66 81 741 6443.
Monday, 31 December 2007
Koh Samui New Hotels and Tourism 2008
First of all may I wish you all a very prosperous and Happy New Year. I have no comment on the result of the General Election as yet until we can see how the Coalition negotiations turn out and what proposals that come out of that.
You will see that in February we are supporting the Matt Hampson Trust. (see http://matthampsonkohsamui.blogspot.com/). For those of us who have been involved in Rugby at various levels over the years and continue to support it even as spectators, this is a very worthwhile charity and any assistance or help will be much appreciated. More specific details in next months Newsletter. So far we have attracted intriguing sponsorship including signed boxing gloves from Steve Collins, Enzo Macrinelli and Joe Calzaghe, Leicester Tigers shirts signed by their international players and our local champion Mr Lawrence Fay of Sabai Properties who has offered to have his head shaved on the 23rd February live in Coco Blues if we can get Baht 40,000 in sponsorship. I do not see that as a major problem - please email me for sponsorship foms!
More and more investors are coming to Koh Samui for the purpose of investing in the hotel scene. We have already seen announcements by Conrad, Park Hyatt, Mandarin Oriental, Hard Rock Hotel, Dusit D2, Alila Hansar, W, X2 and more recently a joint venture between Lehman Brothers and the Malaysian YTL Hotels and Properties of a site in Choengmon which they claim will be managed by a “renowned name”. We recently were instrumental in bringing to the island a famous name in hotels which is known internationally but which we cannot yet disclose. We have also received an enquiry from a major hotel group who wish to establish themselves here in Koh Samui as well as another foreign investor with a significant budget with the same idea. These are all 5-star hotels, a commodity in which the island has been severely lacking, but it is indicative of the way Koh Samui is moving up market and the faith major investors and international hotel operators have in the future of Koh Samui as a tourist destination.
There are very few large hotels on Koh Samui, and of the 264 hotels in our survey there are only two which can boast over 200 rooms and only 13 which have over 100 rooms. None of the new hotels planned exceed 200 rooms, and half have under 100, but a common feature to many is the combination of hotel rooms and villas for sale, not a new concept by any means but one which is becoming more prevalent as investors work to recoup their capital outlay quickly whilst still providing the required accommodation for the hotel management as the villas for the most part remain in the rental pool. It has been a common philosophy that for a hotel management company to provide the necessary Return on Investment (ROI) to the owner, a very minimum of 130 keys is essential and that still probably holds true for hotels in the 4-star category. What we are seeing here is the required ROI being achieved by higher occupancy and higher Average Daily Rates (ADR). This is achieved by good marketing, and of course the international chains have established worldwide marketing arms, but above all by providing exceptional service. The travelling public is becoming more discerning and demanding but is prepared to pay for quality. The United Nations World Tourist Organisation (UNWTO) report that tourism world wide is on the increase with 5.6% more people travelling in the first eight months of 2007 than same period in 2006 and that this growth is likely to continue for the rest of 2007. Regionally Asia Pacific is expected to grow by +10% whilst a slow down in the Americas, the Middle East and slightly in Europe. The Average Daily Rate for the new hotels planned for Samui is predicted at ca. $650/ night or Baht 22,000.
The good news to support this increase in tourists is the approval by the Environmental Authorities to allow additional capacity at Koh Samui Airport which should allow flights by Thai Airways to start and provide some competition although I will not be holding my breath to see significantly cheaper air fares. See the article below.
Once again I need to highlight the Thai Baht onshore/offshore rate issue. I am still seeing companies offering to buy and transfer Thai Baht at better rates than can be achieved at high street banks. For instance one company was quoting the Pound at Baht 65.6 against Baht 64.8 at the bank. The rate onshore here in Thailand at the same time was Baht 68.08 which would gain you Baht 124,000 on a £50,000 transfer. It was the same against the US Dollar – Baht 31.8 against Baht 31.4 when the rate onshore was Baht 33.49. A difference of Baht 84,500. They will even offer to transfer the funds without charge – well with transfer costs of less than Baht 1,000 I am not surprised. So you can see where they are making their money and none of them will tell you that you will not get the Foreign Exchange Transaction Certificate this way. ALWAYS send funds in your home currency, never in Thai Baht. In my experience you will always get a better rate here onshore and you will get the FETC. Also see the article later in this Newsletter re the future of the offshore/onshore rate divide.
For those of you who know him, Crispin Patton-Smith has at last been cleared of all charges and released from prison – see the story below. That he had to spend the last eighteen months in custody due to the unsubstantiated ramblings of a madman is a travesty and we all wish Crispin well on his return to civilisation.
The full Newsletter can be obtained by emailing me hbonning@kosamuiproperties.com
You will see that in February we are supporting the Matt Hampson Trust. (see http://matthampsonkohsamui.blogspot.com/). For those of us who have been involved in Rugby at various levels over the years and continue to support it even as spectators, this is a very worthwhile charity and any assistance or help will be much appreciated. More specific details in next months Newsletter. So far we have attracted intriguing sponsorship including signed boxing gloves from Steve Collins, Enzo Macrinelli and Joe Calzaghe, Leicester Tigers shirts signed by their international players and our local champion Mr Lawrence Fay of Sabai Properties who has offered to have his head shaved on the 23rd February live in Coco Blues if we can get Baht 40,000 in sponsorship. I do not see that as a major problem - please email me for sponsorship foms!
More and more investors are coming to Koh Samui for the purpose of investing in the hotel scene. We have already seen announcements by Conrad, Park Hyatt, Mandarin Oriental, Hard Rock Hotel, Dusit D2, Alila Hansar, W, X2 and more recently a joint venture between Lehman Brothers and the Malaysian YTL Hotels and Properties of a site in Choengmon which they claim will be managed by a “renowned name”. We recently were instrumental in bringing to the island a famous name in hotels which is known internationally but which we cannot yet disclose. We have also received an enquiry from a major hotel group who wish to establish themselves here in Koh Samui as well as another foreign investor with a significant budget with the same idea. These are all 5-star hotels, a commodity in which the island has been severely lacking, but it is indicative of the way Koh Samui is moving up market and the faith major investors and international hotel operators have in the future of Koh Samui as a tourist destination.
There are very few large hotels on Koh Samui, and of the 264 hotels in our survey there are only two which can boast over 200 rooms and only 13 which have over 100 rooms. None of the new hotels planned exceed 200 rooms, and half have under 100, but a common feature to many is the combination of hotel rooms and villas for sale, not a new concept by any means but one which is becoming more prevalent as investors work to recoup their capital outlay quickly whilst still providing the required accommodation for the hotel management as the villas for the most part remain in the rental pool. It has been a common philosophy that for a hotel management company to provide the necessary Return on Investment (ROI) to the owner, a very minimum of 130 keys is essential and that still probably holds true for hotels in the 4-star category. What we are seeing here is the required ROI being achieved by higher occupancy and higher Average Daily Rates (ADR). This is achieved by good marketing, and of course the international chains have established worldwide marketing arms, but above all by providing exceptional service. The travelling public is becoming more discerning and demanding but is prepared to pay for quality. The United Nations World Tourist Organisation (UNWTO) report that tourism world wide is on the increase with 5.6% more people travelling in the first eight months of 2007 than same period in 2006 and that this growth is likely to continue for the rest of 2007. Regionally Asia Pacific is expected to grow by +10% whilst a slow down in the Americas, the Middle East and slightly in Europe. The Average Daily Rate for the new hotels planned for Samui is predicted at ca. $650/ night or Baht 22,000.
The good news to support this increase in tourists is the approval by the Environmental Authorities to allow additional capacity at Koh Samui Airport which should allow flights by Thai Airways to start and provide some competition although I will not be holding my breath to see significantly cheaper air fares. See the article below.
Once again I need to highlight the Thai Baht onshore/offshore rate issue. I am still seeing companies offering to buy and transfer Thai Baht at better rates than can be achieved at high street banks. For instance one company was quoting the Pound at Baht 65.6 against Baht 64.8 at the bank. The rate onshore here in Thailand at the same time was Baht 68.08 which would gain you Baht 124,000 on a £50,000 transfer. It was the same against the US Dollar – Baht 31.8 against Baht 31.4 when the rate onshore was Baht 33.49. A difference of Baht 84,500. They will even offer to transfer the funds without charge – well with transfer costs of less than Baht 1,000 I am not surprised. So you can see where they are making their money and none of them will tell you that you will not get the Foreign Exchange Transaction Certificate this way. ALWAYS send funds in your home currency, never in Thai Baht. In my experience you will always get a better rate here onshore and you will get the FETC. Also see the article later in this Newsletter re the future of the offshore/onshore rate divide.
For those of you who know him, Crispin Patton-Smith has at last been cleared of all charges and released from prison – see the story below. That he had to spend the last eighteen months in custody due to the unsubstantiated ramblings of a madman is a travesty and we all wish Crispin well on his return to civilisation.
The full Newsletter can be obtained by emailing me hbonning@kosamuiproperties.com
Tuesday, 4 December 2007
Koh Samui - Has the rain stopped? We think so!
It is November. It is the rainy season. It is wet. ‘Nuff said!
That is how I opened last months Newsletter and I have included some of the articles from the Newspapers about “what happened next!” (If you want a copy of the full Newsletter email me at hbonning@kosamuiproperties.com ) Well we did get a lot of rain for a couple of days and the problem was that the storm, instead of moving on, sat on top of us for those two days. Consequently the amount of rain that fell was so much and consistent that even with the new drainage that was installed after the previous floods a couple of years ago, it was falling faster than it could drain away. It is true that in some places there was some severe flooding, especially around the Laem Din Market, by the Chaweng Lake and along certain sections of the Beach Road, but once the rain stopped the water did actually drain away pretty quickly. In some areas the floods were worse than two years ago especially around the Reggae Street end of Chaweng Lake and the north end of the Beach Road but the big difference was that once it stopped raining the water went away very quickly. Now that did not make the situation any better for the people who had been affected as the damage had been done, but at least they were able to get back to business once the water had subsided. Clearly a lot more needs to be done to make the situation better when we get this level of flooding and hopefully the move towards Samui getting City Status can provide the additional funds to do this. In this respect a consultation document was issued in September (but only just reached my desk) explaining what the authorities were trying to do and asking for the views of the local population. There was no date by when submission had to be made but we will be making further enquiries to see how this progresses. In the meantime it has been warm and sunny and many locals believe the rainy season was short and sharp and is now over. Michael Fish – eat your heart out!
There are three kinds of lies: lies, damned lies, and statistics
This well-known saying is part of a phrase attributed to Benjamin Disraeli and popularized in the U.S. by Mark Twain. Doing research into an article I am writing I accessed the Tourist Authority of Thailand web site statistics page for Koh Samui. Whilst it is mostly in Thai, certain sections are in English and of particular interest to me were the figures representing the hotel occupancy rates for 2004 to 2006. Each year is on a separate page so in order to make a meaningful comparison I consolidated the figures into a single spreadsheet. It was only then that it became obvious there was a huge error. The figures quoted for the second half of 2005 in every category were exactly the same as the figures quoted for the second half of 2006. Statistically impossible – or am I being glib? The reality I suspect is someone cut and pasted the figures, no one updated them and no one checked them. I also looked at the figures quoted for hotel rooms in Koh Samui and tried to reconcile their figures with my own. Let us just say we differ significantly. So far they have not responded to my emails asking if we can resolve this. I am quite prepared to accept it if I have made a mistake but I somehow doubt I have missed several thousand hotel rooms. The problem therefore is having found two quite significant discrepancies in two separate tables, how accurate are the remainder, and if they are not accurate, how do they help in planning for the future? I have a strange feeling I will be running up a face saving issue here and rather than resolve the problem, it will just be ignored.
The General Election is due to take place on 23rd December and it is anyone’s guess as to how it will turn out. There is the usual bickering between the various factions with allegations and insults flying around. Par for the course I guess. Nevertheless it must be good for the country to return to civilian rule where legitimate actions and legislation can set the country back on course and not fall behind the rest of Asia where foreign business is being made more welcome every day. I am still surprised, although having lived here for so long I should not be, at the number of people who want to whisper in your ear that they know someone in Bangkok who has the inside track on how this is all going to turn out and the Ministries have already been allocated. The funny thing is of course, no one has the same story! All we can do is wait and see. Then perhaps we will discover who really did have “informed sources”!
That is how I opened last months Newsletter and I have included some of the articles from the Newspapers about “what happened next!” (If you want a copy of the full Newsletter email me at hbonning@kosamuiproperties.com ) Well we did get a lot of rain for a couple of days and the problem was that the storm, instead of moving on, sat on top of us for those two days. Consequently the amount of rain that fell was so much and consistent that even with the new drainage that was installed after the previous floods a couple of years ago, it was falling faster than it could drain away. It is true that in some places there was some severe flooding, especially around the Laem Din Market, by the Chaweng Lake and along certain sections of the Beach Road, but once the rain stopped the water did actually drain away pretty quickly. In some areas the floods were worse than two years ago especially around the Reggae Street end of Chaweng Lake and the north end of the Beach Road but the big difference was that once it stopped raining the water went away very quickly. Now that did not make the situation any better for the people who had been affected as the damage had been done, but at least they were able to get back to business once the water had subsided. Clearly a lot more needs to be done to make the situation better when we get this level of flooding and hopefully the move towards Samui getting City Status can provide the additional funds to do this. In this respect a consultation document was issued in September (but only just reached my desk) explaining what the authorities were trying to do and asking for the views of the local population. There was no date by when submission had to be made but we will be making further enquiries to see how this progresses. In the meantime it has been warm and sunny and many locals believe the rainy season was short and sharp and is now over. Michael Fish – eat your heart out!
There are three kinds of lies: lies, damned lies, and statistics
This well-known saying is part of a phrase attributed to Benjamin Disraeli and popularized in the U.S. by Mark Twain. Doing research into an article I am writing I accessed the Tourist Authority of Thailand web site statistics page for Koh Samui. Whilst it is mostly in Thai, certain sections are in English and of particular interest to me were the figures representing the hotel occupancy rates for 2004 to 2006. Each year is on a separate page so in order to make a meaningful comparison I consolidated the figures into a single spreadsheet. It was only then that it became obvious there was a huge error. The figures quoted for the second half of 2005 in every category were exactly the same as the figures quoted for the second half of 2006. Statistically impossible – or am I being glib? The reality I suspect is someone cut and pasted the figures, no one updated them and no one checked them. I also looked at the figures quoted for hotel rooms in Koh Samui and tried to reconcile their figures with my own. Let us just say we differ significantly. So far they have not responded to my emails asking if we can resolve this. I am quite prepared to accept it if I have made a mistake but I somehow doubt I have missed several thousand hotel rooms. The problem therefore is having found two quite significant discrepancies in two separate tables, how accurate are the remainder, and if they are not accurate, how do they help in planning for the future? I have a strange feeling I will be running up a face saving issue here and rather than resolve the problem, it will just be ignored.
The General Election is due to take place on 23rd December and it is anyone’s guess as to how it will turn out. There is the usual bickering between the various factions with allegations and insults flying around. Par for the course I guess. Nevertheless it must be good for the country to return to civilian rule where legitimate actions and legislation can set the country back on course and not fall behind the rest of Asia where foreign business is being made more welcome every day. I am still surprised, although having lived here for so long I should not be, at the number of people who want to whisper in your ear that they know someone in Bangkok who has the inside track on how this is all going to turn out and the Ministries have already been allocated. The funny thing is of course, no one has the same story! All we can do is wait and see. Then perhaps we will discover who really did have “informed sources”!
Saturday, 3 November 2007
Who does an agent act for? Thoughts from Koh Samui.
It is November. It is the rainy season. It is wet. ‘Nuff said!
Donald Trump wrote a book entitled “The Art of the Deal”. As one of the most successful real estate developers in the world, he has had his ups and downs and proved the old adage that the more you owe the more you can borrow. When he was down on his last legs he owed various banks hundreds of millions of dollars. He arranged a meeting and said quite simply, you make me bankrupt and you will lose all the money you leant me or you can lend me more and I will get out of this mess – take your choice. They really had none, they gave him the money he needed and he climbed back to the top with some outrageously difficult but ultimately profitable schemes.
The main thrust of his book though was know your adversary, information is king, know the strengths and weaknesses of the other side and be prepared to walk away from a deal that is not right. “The Art of the Deal” was written from the perspective of the Principle, the decision maker, the man who controlled the money and who decided where and what was invested. An agent or broker still has to know how to make a deal but he is in a different position to the Principal in that he is the third party in a transaction and it is the job of the agent to bring two or more parties together to a conclusion acceptable to each side.
An Agent is “a person or business authorized to act on another's behalf”. The extent of that authorization is determined by agreement between the parties. As a Real Estate Agent we are authorised to offer properties for sale or to let on behalf of a Client. It is the Client who will pay our fee and it is the Client to whom we have the principal responsibility to negotiate the best deal on their behalf. This in no way diminishes our responsibility to the other party to provide accurate and honest information and not to provide misleading information. The extent of the authority an agent has can vary. Offering a property for sale is a basic and common relationship and usually evidenced by a simple contract or letter of appointment. At the other end, and I have been in this situation, bidding for a Client at an Auction requires far more.
A Sale at auction becomes legally binding on the fall of the Auctioneers Gavel. So if you have the winning bid, you need as an agent both a full Power of Attorney to sign on behalf of the Client and funds to pay the required deposit. Without this the agent would be legally bound to complete the sale himself. There is also an art to bidding at Auction for a Client. You will have specific instructions to bid up to a certain amount. You therefore must concentrate on the how the bidding is progressing and in what amounts. It is crucial that your last bid (if it gets that far) is the highest bid your Client has authorised, therefore you need to get into the bidding at a level that allows that last bid to be yours. For example, if the bids are increasing in £1,000 steps and your highest bid is say £50,000, then you need to be in the bidding no later than £48,000, preferably earlier but on the even numbers so when £49,000 is bid you can get your highest bid, £50,000, in next. Your Client would be very unhappy if you bid £49,000 and £50,000 bought it!
I was asked recently by a friend, who has been living part time on the island but who is now selling his house, to comment on an approach he had received from a “broker’ in respect of the sale of his house. The “broker” has a client who was interested in my friends house but the introduction to the house had been through two other people, one of whom he would have to share his commission with, the other would have to be taken care of by the seller, my friend. He did not disclose the name of the potential buyer, nor pass on any offer. His only concern was how much commission was the seller going to pay him and if it was not enough he would be unable to recommend the deal to his buyer. This is probably among the best cases of un-professionalism I have come across in over 35 years of working in international real estate. He forgot the first principle of this business – the Client comes first.
As an agent it is not our decision whether or not any offer is acceptable. Even if an offer is made that is derisory we have a duty to make that offer known to the Seller. We cannot know the personal circumstances of that person and however bad the offer is, it may just suit the seller to accept it at that time. Indeed a few years ago that precise situation happened to me. An offer was made on a property that was way below the asking price and below the real value. As a matter of course I informed my Client and to my surprise he told me to accept the offer and close the deal. His reasons were personal but the offer, as bad as it was, came at the right time for him and he has never regretted his decision. As an agent we still negotiate deals, but unlike “The Donald” we can only do so within the parameters set by our Clients, but must never forget that these parameters can change.
Donald Trump wrote a book entitled “The Art of the Deal”. As one of the most successful real estate developers in the world, he has had his ups and downs and proved the old adage that the more you owe the more you can borrow. When he was down on his last legs he owed various banks hundreds of millions of dollars. He arranged a meeting and said quite simply, you make me bankrupt and you will lose all the money you leant me or you can lend me more and I will get out of this mess – take your choice. They really had none, they gave him the money he needed and he climbed back to the top with some outrageously difficult but ultimately profitable schemes.
The main thrust of his book though was know your adversary, information is king, know the strengths and weaknesses of the other side and be prepared to walk away from a deal that is not right. “The Art of the Deal” was written from the perspective of the Principle, the decision maker, the man who controlled the money and who decided where and what was invested. An agent or broker still has to know how to make a deal but he is in a different position to the Principal in that he is the third party in a transaction and it is the job of the agent to bring two or more parties together to a conclusion acceptable to each side.
An Agent is “a person or business authorized to act on another's behalf”. The extent of that authorization is determined by agreement between the parties. As a Real Estate Agent we are authorised to offer properties for sale or to let on behalf of a Client. It is the Client who will pay our fee and it is the Client to whom we have the principal responsibility to negotiate the best deal on their behalf. This in no way diminishes our responsibility to the other party to provide accurate and honest information and not to provide misleading information. The extent of the authority an agent has can vary. Offering a property for sale is a basic and common relationship and usually evidenced by a simple contract or letter of appointment. At the other end, and I have been in this situation, bidding for a Client at an Auction requires far more.
A Sale at auction becomes legally binding on the fall of the Auctioneers Gavel. So if you have the winning bid, you need as an agent both a full Power of Attorney to sign on behalf of the Client and funds to pay the required deposit. Without this the agent would be legally bound to complete the sale himself. There is also an art to bidding at Auction for a Client. You will have specific instructions to bid up to a certain amount. You therefore must concentrate on the how the bidding is progressing and in what amounts. It is crucial that your last bid (if it gets that far) is the highest bid your Client has authorised, therefore you need to get into the bidding at a level that allows that last bid to be yours. For example, if the bids are increasing in £1,000 steps and your highest bid is say £50,000, then you need to be in the bidding no later than £48,000, preferably earlier but on the even numbers so when £49,000 is bid you can get your highest bid, £50,000, in next. Your Client would be very unhappy if you bid £49,000 and £50,000 bought it!
I was asked recently by a friend, who has been living part time on the island but who is now selling his house, to comment on an approach he had received from a “broker’ in respect of the sale of his house. The “broker” has a client who was interested in my friends house but the introduction to the house had been through two other people, one of whom he would have to share his commission with, the other would have to be taken care of by the seller, my friend. He did not disclose the name of the potential buyer, nor pass on any offer. His only concern was how much commission was the seller going to pay him and if it was not enough he would be unable to recommend the deal to his buyer. This is probably among the best cases of un-professionalism I have come across in over 35 years of working in international real estate. He forgot the first principle of this business – the Client comes first.
As an agent it is not our decision whether or not any offer is acceptable. Even if an offer is made that is derisory we have a duty to make that offer known to the Seller. We cannot know the personal circumstances of that person and however bad the offer is, it may just suit the seller to accept it at that time. Indeed a few years ago that precise situation happened to me. An offer was made on a property that was way below the asking price and below the real value. As a matter of course I informed my Client and to my surprise he told me to accept the offer and close the deal. His reasons were personal but the offer, as bad as it was, came at the right time for him and he has never regretted his decision. As an agent we still negotiate deals, but unlike “The Donald” we can only do so within the parameters set by our Clients, but must never forget that these parameters can change.
Monday, 1 October 2007
News from Koh Samui for October
Statistics issued by the Association of Thai Travel Agents indicate a sharp drop in foreign tourist arrivals through Bangkok’s Suvarnabhumi Airport for the first eight months of this year. This may not be indicative of tourist arrivals overall as the figures do not include international arrivals into Koh Samui, Phuket, Chiang Mai and Krabi. What is interesting about the figures is that the main fall in numbers is from Asian countries such as China, Japan and Korea, the suggestion being that tourists from these countries are saving for the Olympic Games in China in 2008 which is an interesting concept to consider in relation to what will happen to tourism in Thailand next year. Major sporting events around the world are now so popular and well attended that they do appear to have an effect on the tourism of other destinations – sometimes positively. If I think back to the Rugby World Cup in 2003 which was held in Australia, there was no doubt that Samui and probably Thailand benefited as people travelled through and stopped over on their way there and back. Some even stayed here for the whole tournament as the television timing was friendlier than in Europe and it was considerably cheaper than going on to Australia. The Soccer World Cup in 2006 had the opposite effect with many people taking their vacations in Germany, although there was one group who found the cost of tickets so expensive that for the same price they flew out to Koh Samui for four weeks and still watched all the games in various bars around the island! So will the Beijing Olympics be good for Thailand or not? The implication from the statistics is that it will not, at least as far as other Asian tourists are concerned. However, the statistics also showed that there was an increase in tourists from Europe, in particular France, the UK and Russia. People are still travelling despite the hassle of modern airline security procedures and perceived political problems here, so will we see the same phenomena as we saw in 2003 as people travel to and from China, or will the Games and China itself be too attractive for them to take side trips? We must wait and see.
This year has seen a number of high quality hotels open, or announce their intention to open, on Koh Samui. This includes The Four Seasons which opened earlier this year on the north west peninsular, Banyan Tree due to open in 2008, Conrad in the south west, W in the north, Club Med in an as yet undisclosed location, although thought to be on one of the small islands off the south west coast, Park Hyatt in Tong Krut Bay due to open in late 2009 and word on the grape vine is that there are two more world class operators also about to announce their intentions. We are also working closely with a major hotel group in the acquisition of a property here and expect an announcement to be made early in the New Year. Koh Samui is without doubt becoming a major destination island and the hotel brands coming here are all the top of the range within their groups. Koh Samui is definitely going up-market and the constant moan is that the island has lost its charm. Well I would suggest that this may be true for the ageing backpacker who first came here 20 years ago, but for anyone coming here for the first time it still has a great deal to offer. Has the infrastructure kept up with development – well obviously not but it is slowly and gradually improving and it is the pressure of development that has made this happen. If all the houses and hotels that have been built over the last few years had not been built, there would have been no need to increase the electricity supply, address the water issue and, whether you like it or not, attract the likes of Lotus Tesco, Makro, Big C and Home Pro. When I first came here six years ago power cuts were frequent even before development started, many places relied solely on shallow wells with water of dubious quality. Shopping was a hit and miss affair with limited choice and poor quality. Since then a second electrical supply cable has been laid from the mainland a desalination plant built and a water ring main installed round the island. Obviously this has been of benefit to the tourist industry and business generally but it has also improved the living standards of the local Samui population, something that probably would not have happened without the pressure of development. Complaints are heard that Tesco, Makro and Big C are harming small supermarkets. The same supermarkets I shopped at six years ago are still here and where do they buy their stock? Lotus, Makro and Big C and at wholesale prices. So there have been many positives to the development that has taken place, but probably the biggest negative has been the effect on the roads with so many concrete lorries and construction vehicles continually on the move. The main roads are the responsibility of the Surat Thani Highways Department and anyone taking the ferry to Don Sak must wonder how they manage to build such a quality road from the ferry port into Surat Thani but cannot do the same on Samui. No one at any level of government has been able to answer that yet. Is Samui overdeveloped? Possibly in the short term in relation to current demand, but once the political situation has clarified itself after the General Election in December I believe that there is a large pent up demand waiting to come here. Is Samui over developed as an island per se? Take a boat trip round the island and look inland. I did this a few weeks ago and was quite surprised at the vast areas of totally development free land there – a great deal of course high in the hills under the control of the Forestry Department and therefore safe from development. Almost all the development that has taken place and is planned, with the exception of the Choengmon peninsular, is within one to two kilometers of the sea. There are indeed some eyesores that have appeared and I am sure that some judicial use of colour and/or landscaping would lessen their visual impact. The Local Authority has taken some steps in this direction by only allowing earth tone colours for roof tiles. The real estate market has taken a breather but it has not collapsed as some people thought it would. Sales are still happening if at a slower pace, but we have not seen any significant drop in values. Samui is definitely emerging as a high value resort destination and for those with spare cash, the Thailand Elite Card, details of which I can send you if you contact me by email, offers freedom from the hassle of border runs and visa renewals. Certainly not for everyone due to the cost, but for those with a high net worth who play golf and use spas and who are seeking an easy life – well worth considering.
A quick reminder if you are planning a trip to Samui in November – Loh Kratong falls on the 24th November this year. If you have never seen this before it is well worth planning your visit around this Festival where hundreds if not thousands of candle lit Kratongs are set afloat in the sea, on lakes and rivers. More details on that in a future Newsletter.
This year has seen a number of high quality hotels open, or announce their intention to open, on Koh Samui. This includes The Four Seasons which opened earlier this year on the north west peninsular, Banyan Tree due to open in 2008, Conrad in the south west, W in the north, Club Med in an as yet undisclosed location, although thought to be on one of the small islands off the south west coast, Park Hyatt in Tong Krut Bay due to open in late 2009 and word on the grape vine is that there are two more world class operators also about to announce their intentions. We are also working closely with a major hotel group in the acquisition of a property here and expect an announcement to be made early in the New Year. Koh Samui is without doubt becoming a major destination island and the hotel brands coming here are all the top of the range within their groups. Koh Samui is definitely going up-market and the constant moan is that the island has lost its charm. Well I would suggest that this may be true for the ageing backpacker who first came here 20 years ago, but for anyone coming here for the first time it still has a great deal to offer. Has the infrastructure kept up with development – well obviously not but it is slowly and gradually improving and it is the pressure of development that has made this happen. If all the houses and hotels that have been built over the last few years had not been built, there would have been no need to increase the electricity supply, address the water issue and, whether you like it or not, attract the likes of Lotus Tesco, Makro, Big C and Home Pro. When I first came here six years ago power cuts were frequent even before development started, many places relied solely on shallow wells with water of dubious quality. Shopping was a hit and miss affair with limited choice and poor quality. Since then a second electrical supply cable has been laid from the mainland a desalination plant built and a water ring main installed round the island. Obviously this has been of benefit to the tourist industry and business generally but it has also improved the living standards of the local Samui population, something that probably would not have happened without the pressure of development. Complaints are heard that Tesco, Makro and Big C are harming small supermarkets. The same supermarkets I shopped at six years ago are still here and where do they buy their stock? Lotus, Makro and Big C and at wholesale prices. So there have been many positives to the development that has taken place, but probably the biggest negative has been the effect on the roads with so many concrete lorries and construction vehicles continually on the move. The main roads are the responsibility of the Surat Thani Highways Department and anyone taking the ferry to Don Sak must wonder how they manage to build such a quality road from the ferry port into Surat Thani but cannot do the same on Samui. No one at any level of government has been able to answer that yet. Is Samui overdeveloped? Possibly in the short term in relation to current demand, but once the political situation has clarified itself after the General Election in December I believe that there is a large pent up demand waiting to come here. Is Samui over developed as an island per se? Take a boat trip round the island and look inland. I did this a few weeks ago and was quite surprised at the vast areas of totally development free land there – a great deal of course high in the hills under the control of the Forestry Department and therefore safe from development. Almost all the development that has taken place and is planned, with the exception of the Choengmon peninsular, is within one to two kilometers of the sea. There are indeed some eyesores that have appeared and I am sure that some judicial use of colour and/or landscaping would lessen their visual impact. The Local Authority has taken some steps in this direction by only allowing earth tone colours for roof tiles. The real estate market has taken a breather but it has not collapsed as some people thought it would. Sales are still happening if at a slower pace, but we have not seen any significant drop in values. Samui is definitely emerging as a high value resort destination and for those with spare cash, the Thailand Elite Card, details of which I can send you if you contact me by email, offers freedom from the hassle of border runs and visa renewals. Certainly not for everyone due to the cost, but for those with a high net worth who play golf and use spas and who are seeking an easy life – well worth considering.
A quick reminder if you are planning a trip to Samui in November – Loh Kratong falls on the 24th November this year. If you have never seen this before it is well worth planning your visit around this Festival where hundreds if not thousands of candle lit Kratongs are set afloat in the sea, on lakes and rivers. More details on that in a future Newsletter.
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