Sunbelt Asia Weekly Column
7 September 2018
Thailand jumped to third place in the “Best Country in the World” category of the Conde Nast Traveller UK 2018 Readers’ Travel Awards, and first for “Best Country for People”. Koh Samui cracked the top ten “Best Islands in the World” staying at number nine in the survey conducted annually. Italy came in first as the Best Country followed by Greece again this year while last year Thailand came in at number 8. According to the Governor of the TAT Thailand also did well in Travel Weekly U.K.’s annual global awards; Thailand came in first for Best for Spa & Wellness, second place for Best for Value for Money, fourth place for Best for Food & Drink ninth place for Best for Luxury.
Thailand saw 22.65 million visitor arrivals from January to July 2018, an 11 percent year on year jump according to the Tourism Authority of Thailand (TAT). Estimated visitor expenditure rose by 14.44 percent to 1.18 trillion baht. The top ten source markets Thailand during the first seven months were China, Malaysia, the Republic of Korea, Lao PDR, India, Japan, Russia, the United States, Vietnam, and Singapore. The TAT also reported a rise in visitor arrivals by sea and higher hotel occupancy rates in secondary provinces such as Rayong, Suphan Buri, Chai Nat, Nakhon Pathom, Ang Thong, and Patthalung.
The Ministry of Commerce predicts exports will grow 9 percent this year with China remaining Thailand’s largest trading partner. Two-way trade between Thailand and China reached $US73 billion last year, a 12.4 percent leap compared to 2016, this year it is predicted to top US$80 billion. The Ministry is looking to help Thai producers penetrate local Chinese markets as well as online markets with a bid to promote Thai fruits overseas as well.
The e-commerce market in Thailand is expected to grow to 10 percent of the total retail market within five years, up from three percent today. Central Group is officially launching a new e-commerce platform in conjunction with Chinese giant JD Group called JD Central next month after a soft-opening in June. Online retail makes up 30 percent of the market in China. The Revenue Department reports that there are about 500,000 million online vendors selling in Thailand, of which 350,000 are based in the country.
A draft bill to supervise e-commerce transactions is undergoing a second round of public hearings after vetting by the Council of State. The new bill will improve the Revenue Department’s tax collection efficiency giving the department the tools to determine if online vendors are understating or evading tax payments. The new bill will require that financial institutions report customer accounts with more than more than 3,000 deposits and more than 200 money transfer transactions a year with a total value of at least 2 million baht to the Revenue Department. The cabinet recently approved an amended Revenue Code related to VAT collection from e-business operators with a physical presence outside of Thailand, while the Revenue Department is drafting a bill revoking VAT exemption for online purchases of goods that are valued at less than 1,500 baht from vendors shipped by mail outside of Thailand.
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Pattaya hotel reduced to below market value for quick sale
Price reduced drastically to 19.5 million baht for a quick sale – now cheaper than market value of 23 million! The owner is slashing the price on this modern hotel as he is moving back to his home country shortly.
Very close to Walking Street in Pattaya this hotel has a high occupancy rate and good reviews from guests. The hotel has a high occupancy rate, is nearly almost always full, and has attracted a strong Middle Eastern clientele.
There is a total of 18 rooms in the hotel, and there are a variety of rooms, all well equipped and roomy. The hotel also has a coffee shop for guests and outside customers.
The hotel has a good income each month, taking in 300,000 baht every month regularly. There are 4 staff with a total monthly payroll of 50,000 baht.
ASKING PRICE: 19.5 million baht
(BKK15785)
Chonburi sailing supplies business
Located in one of Asia’s largest marinas with full facilities for yachts and boats, this business provides marine services supported and backed by the worldwide leader in sail making. Offering standing sail storage, canvas and trimming work, service and sail repair as well as sales of brand name sails, this business caters to a popular and growing market in Asia.
The business has a great potential for growth with a well trained staff and easy operating system. The business has protected product lines and established accounts. The loyal clientele create a lot of sales and referrals. This is a great opportunity for someone who loves the sailing lifestyle and can make money out of it.
The business is located in Chonburi with a 108 sqm upstairs sail loft for inventory, canvas work, and retail sales. Merchandising and marketing would boost this company further. The business has been operating for 6 years and there are four full time employees. The company has no real competition at this quality level. The owner is looking to sell as he is ready to “sail away”.
ASKING PRICE: 3.9 million baht
(BKK15831)
Top-rated Samui dive school, speedboat tours
Update! New Asking Price of 16 million baht as the owners are keen to sell.
This top -rated and highly reviewed dive school is located on Koh Samui and has been offering high quality, environmentally aware dive and marine tours and dive classes since 2002. Well reviewed on TripAdvisor the business offers exclusive high end daily joint trips and private charter snorkelling and diving speedboat tours to the best destinations in the Gulf of Thailand. The region’s first Scubapro Partner Centre, the award winning PADI 5 Star Dive center has garnered rave reviews and great word of mouth over the years.
This business could see growth by tapping into the expanding Chinese market as well as by increasing the private charter side of the business.
There are 25 highly trained dedicated staff with a monthly payroll of 580,000 baht. Annual sales are at 20 million baht with a net profit of 3.75 million. Approximately 60 to 65% of sales income comes from internet sales with 30 to 35% from resorts and remaining income coming via direct walk in and retail. The split between diving/non diving revenue is around 35% / 65%. The monthly rent is 35,000 baht for the 400 sqm building. The premises has space for reception/retail, office administration, classroom, store, garden areas for guest arrival/departure and a kit room containing high spec’ and well maintained dive & snorkelling equipment. The property also has a substantial 2 storey, 2 bedroom detached house with storage and an engine service workshop.
The business is fully licensed and assets valued at 10.5 million baht are included in the sale.
The owners are retiring and wish to sell this thriving high-end business
ASKING PRICE: 16 million baht
(BKK15820)
Popular online health food store- can run from any location!
This online health food store is one of the most well-known in Thailand and has earned a good reputation for providing high quality superfoods, and raw and organic foods and products with delivery around the country and worldwide. The website is quite extensive and has a great modern design with built in check out system and secure payment.
This business has huge potential growth as the health food industry takes off in Thailand. The new owners can run the business from their current location with no need to relocate since it all takes place online. The company has been in business for four years and the current owners expanded it and updated the website after taking ownership one and a half years ago.
The owners wish to sell for family reasons.
ASKING PRICE: 1.85 million baht
(BKK15709)
Large Bangrak hostel with cafe
In the popular Bangrak neighbourhood, this hostel has 90 beds in 20 rooms with an in house café. Potential for this business is quite high but the owner is not able to manage on site, an active manager on site could easily grow this business as this is a popular tourist area and the hostel concept remains popular with travellers. Payroll is currently 100,000 baht a month and rent on the location is 151,750 baht a month with a 9 year lease.
All assets are included in the sale including furniture, CCTV, website and online booking system.
ASKING PRICE: 9.5 million baht
(BKK15810)
Popular American franchise restaurant in busy Bangkok mall
This top American franchise business is located in the food court of a popular and busy mall in Northwestern Bangkok. The business has been opened for a year now but the owner needs to sell as his other businesses take up too much of his time to manage this one. Located in a top spot int he food court of a busy mall this business is great for someone who wants to take up a well-known and popular franchise in a busy area.
Rent is 17 percent of gross profit and the space is 25.60 sqm There are four full time employees with a total monthly payroll of 25,000 baht a month. A new owner with more time to dedicate to this business could easily grow sales which topped 3 million in the first year. The sale price does not include the franchise fee or deposit with the supplier
ASKING PRICE: 2.5 million baht
(BKK15819)
BOI tech company allows for 100% foreign ownership
The BOI promoted business allows for 100 percent foreign ownership and falls within the guidelines and goals of the government’s bid to progress the economy to higher tech. This business provides cloud services to companies in Thailand and currently has 3 active partnerships and active reseller agreements: Microsoft, Sophos and Acronis, offering managed cloud services and cloud powered IT solutions. The company offers 24/7 management of cloud services and offers services such as Windows and Linux Cloud servers, Cloud back up, website and app hosting and Microsoft Azure. As the company enjoys BOI incentives, profit and dividends are not taxed so it can be beneficial to a local investor to change to local ownership.
In Thailand the spending on public cloud services in 2017 was estimated at 7.73 billion baht according to global research firm IDC. Many companies are moving to the cloud and the Bank of Thailand recently announced that the financial sector can offer financial services on the cloud. Research firm IDC predicts a further growth of the Cloud Services market by 25% yearly on average.
The company has a dedicated team of well-trained IT professionals with certified and senior engineers offering technical support and the company also has an online lead capturing and sales strategy for selling recurring packages. The company conservatively predicts total net profit over 3 years to reach 100 million baht.
The owner has more than 10 years of experience in IT, Cloud, Hosting and Online Marketing. An extensive knowledge and experience that can be transferred to a partner or new owner.
The owner is interested in two options; a joint venture in which the partner takes shares in the Thai company and the owner stays on as the General Manager or a full takeover with 100 percent ownership by the buyer.
ASKING PRICE: 50 million baht
(BKK15827)
Korean cafe franchise in amazing Siam Square location
Update! New Asking Price of 3 million includes franchise fee and lease deposit.
This well-known Korean dessert franchise is in an outstanding Siam Square location and while the business has only been open six months the owner is selling as he doesn’t have the time to manage this and his main business. The owner spent over 8 million baht in setting up the business including all decor and fixtures and fittings but is selling for the lease, franchise, and all fixtures and fittings for ony 4 million baht. The owner is also willing to sell just the lease and the assets.
The 60 sqm location seats 42 with a monthly rental of 210,000 baht on a 3 year lease. There are four full time and two part time employees with a total payroll of 60,000 baht a month. The asking price includes the lease deposit so the new owner can walk into a turnkey business.
ASKING PRICE: 3 million baht – includes franchise and lease deposit
(BKK15837)
