Price for million baht privilege elite cards set to double
THAILAND ELITE CARDS: Price for privileges will double in 2004
BANGKOK: Expatriates will be charged Bt2 million next year for a Thailand Elite privilege card – double the present price – because they can avail of services and facilities more often than members who are foreign tourists or visiting businessmen.
“We originally intended to set the price for expatriates at Bt2 million because of the many advantages they have but in the beginning, we reduced it to Bt1 million to build customer interest,” Paisit Kaenchan, director of Thailand Privilege Card Co, said yesterday.
Applications from expatriates – foreigners residing or working in the country – will not be accepted after the end of next year to bring the proportion of expatriates down to 5 per cent of total membership from the present 20 per cent.
Paisit denied the firm was taking the measures because it was afraid of losing money. Income was sufficient to cover the Bt40,000 estimated maximum annual expense for each member, he said.
The price for foreign-based cardholders would also be raised by 20-25 per cent within two years from the current Bt1 million, as facilities and services would be improved and added, he said.
The Thailand Elite card, the brainchild of Prime Minister Thaksin Shinawatra, targets one million members in five years. However, since its November 19 launch, only some 200 cards have been sold, at US$25,000 or Bt1 million for individuals and $50,000 for juristic persons. This has forced a drastic cut in the yearend goal to 300 cards from the initial 1,000.
To achieve next year’s sales objective of 100,000 cards, the company has put together a marketing plan that includes going on a road show at least once a month to Japan, China, Korea and other countries in Asia and expanding its sales network from 20 agents at present to 30-40 firms.
Recently, the firm forged an alliance with Unicef, hoping to attract Hollywood celebrities and top executives from all over the world to become members.
“After reaching the 100,000-card level, the company will suspend recruitment of new members for six months to evaluate all services and every golf course, hotel, spa, restaurant and shopping mall participating in the programme,” Paisit said.
Proceeds from card sales are currently stashed in bank deposits but in the future an asset management company will be retained to invest its funds in the same manner as the Government Pension Fund. These idle funds represent 90-95 per cent of total reserves and the fund manager must make an annual return from investment of at least 6-7 per cent.
The remaining 5-10 per cent of reserves will be used to build or take over at least two golf clubs, a boutique hotel and a city club within two years, which will be linked to the future increase in membership fees.
Paisit explained the cardholder privileges in property investment as a form of usufruct – the right to use and enjoy the profits and advantages of something belonging to another as long as the property is not damaged or altered in any way.
Thailand Privilege Card Co, as a Thai-owned entity, retains proprietary ownership of properties that cardholders buy, but the cardholders can enjoy lifetime use of their land and properties, including renting their units out when they are not in the country.
However, cardholders do not get full commercial rights, such as to develop home or condominium projects.
“The first approval of property purchases is expected in January,” Paisit said.
Thailand Privilege Card Co would be around for a long time, not only during this government’s term, because it is a private company and has members around the world who benefit the country greatly over the long term, he said.
“I’m confident that no government would dare to close us. If anyone tries that, he’ll get sued by cardholders all over the world.”
Source: The Nation