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Pattaya hotel chases up Chinese businessmen for 7 million in rent

The Thaiger

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Pattaya hotel chases up Chinese businessmen for 7 million in rent | The Thaiger
PHOTO: Fairtex Sports Club and Hotel, Pattaya
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The Chinese directors of a company, who had rented a 54 room hotel in Pattaya, and not paid rent for 7 months, will now have to pay an estimated 40 million baht compensation to the owners. It appears that the Thai ‘shelf’ company that signed the contract, is still responsible for completing the contract, leaving 2 Thai nominees potentially liable for the unpaid rent.

Prem Bussakamwong, the spokesperson and senior executive at the Fairtex Sports Club and Hotel on North Pattaya Road said that a Chinese company contacted his hotel 2 years ago. He says the hotel’s management checked the references of the Chinese company to discover that it was a large foreign company with offices in Chiang Mai and Bangkok. The company is registered in Thailand with some Thai co-owners.

The businessmen had signed a contract for a seven year lease of the 3 storey hotel with 54 keys. The contract started in September 2018 with the rental set at 1 million baht per month. Up to January this year the rent was paid in full each month.

Then, because of the Covid-19 situation, the rental fee was renegotiated in February but the company had not paid any rent at all since then. And the Chinese businesspeople involved with the contract have vanished.

Prem says the Chinese businessmen cannot be found or contacted and the hotel remains closed with no guests. In contacting the affiliate companies in Bangkok and Chiang Mai, the company officials have been unable to put the hotel’s administration in contact with the Chinese businessmen who signed the contract, and claim that their businesses are not connected.

After meeting with Pattaya City Police, Prem says the Chinese tenants still owe them around 7 million baht for 7 months in rent. He said they’re also demanding 40 million in compensation for damages and costs.

The Thai shareholders in the shelf company that signed the contract to rent the hotel, say they were not aware of the contract and not involved. But with the Chinese ‘owners’ of the company missing, the Thai owners are now being sought to cover the costs and take responsibility for the matter.

Pattaya police say it’s unclear if the unnamed Chinese businessmen are in Thailand at this stage, or not. Police say that their phones have been disconnected and their message accounts deactivated and have not responded to emails.

SOURCE: The Pattaya News

Pattaya hotel chases up Chinese businessmen for 7 million in rent | News by The Thaiger

PHOTO: Prem Bussakamwong, senior executive at the Fairtex Sports Club and Hotel

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10 Comments

10 Comments

  1. Avatar

    Matk

    September 13, 2020 at 7:20 am

    Haha. Gone back in Chian. Whistle for that 40 million. Thai hotel made up figure

    • Avatar

      mark

      September 13, 2020 at 9:03 pm

      I believe it is a SHELL company…

  2. Avatar

    Gosport

    September 13, 2020 at 9:12 am

    If the hotel got 40 million, it would be the only hotel making profit during the pandemic period.

    • Avatar

      Deckard

      September 13, 2020 at 2:21 pm

      Hahhahahaha! 😂 Thainess reversed!! Love it!

  3. Avatar

    Toby Andrews

    September 13, 2020 at 11:36 am

    As Thais commonly insist on being in any company opening in Thailand, or the company is not allowed to operate, this time they have shot themselves in the foot – they are liable!
    Let us see the Thais go after the Chinese in China. They will have as much success as the Chinese using courts against Thais in Thailand.
    Still the Thais on the company board will have received a salary, and a nice sum up front.

    • Avatar

      Issan John

      September 13, 2020 at 4:22 pm

      If Thai “nominee” shareholders are made to pay that could open a real Pandora’s box …..

  4. Avatar

    Unfair Tex

    September 13, 2020 at 3:08 pm

    Well doing a runner isn’t the best way to deal with the issue. But also the hotel wanting a pound of flesh and probably some crap covid discount hasn’t helped either. No customers means no income for either parties.

  5. Avatar

    Reid Moore

    September 14, 2020 at 7:20 am

    You mean SHELL company, a legal entity created on paper only, having no actual assets, with the express purpose of obscuring ownership and transactions/activities, often for monetary gain or tax avoidance. See AMLO for examples.

  6. Avatar

    Mike

    September 14, 2020 at 8:55 am

    Thailand love the Chinese don’t they dispite the wuflu. You can’t trust them!

  7. Avatar

    Joseph McKee

    September 16, 2020 at 12:17 am

    We are monkeys, We are ling.
    Give us your money,..we’ll do anything.

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Business

Air Asia seeks to mitigate economic losses with launch of “super app”

Maya Taylor

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Air Asia seeks to mitigate economic losses with launch of “super app” | The Thaiger
PHOTO: www.lowyat.net

Air Asia is introducing a super app, in an attempt to off-set – at least partially – the significant financial losses brought about by the Covid-19 pandemic. The app will offer users a variety of options, including digital payment services, delivery services, and an e-commerce platform. Chief Executive Tony Fernandes says the idea for the app was floated prior to the pandemic, but Covid-19 hastened its development.

“This journey didn’t start during the pandemic, this journey started 2 years ago, but it was accelerated because of the outbreak. This is not a Plan B, this was always our Plan A, but we still think aviation will definitely come back.”

Air Asia was hit with losses of US$238 million in the second quarter of 2020 and says it desperately needs to seek new sources of revenue while the economic effects of Covid-19 continue to be felt around the globe. The Bangkok Post reports that from October 8, users in Thailand and the wider ASEAN region can access the new app through the company’s website or through its existing mobile app.

Fernandes says payment and logistics services will be provided by the airline’s subsidiary operation, Air Asia Digital. Users will be able to book flights (including those of other airlines) and hotels, as well as enroling in a rewards programme.

“Air Asia’s roots are from moving people from A to B and moving cargo from A to B, and that is the basis of Air Asia Digital and the basis for our platform AirAsia.com.”

The app is expected to face tough competition from super apps Grab and Gojek, currently understood to be in merger talks. Should a merger go ahead, the combined operation would create a monopoly on food delivery and car-hailing services in the ASEAN region. However, Fernandes remains optimistic, with the airline hoping to complement existing services.

“I don’t believe we are here to compete, but here to complement. Airlines always see us as competitors, but we complemented the full service and created a new market that was not there. Before, only a few people could fly, now everyone can fly, and in the same way we will complement the market.”

SOURCE: Bangkok Post

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Phuket

Thailand’s Social Security Office forced to explain investment in Sri Panwa Phuket Resort trust fund

Maya Taylor

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Thailand’s Social Security Office forced to explain investment in Sri Panwa Phuket Resort trust fund | The Thaiger
PHOTO: Sri Panwa Phuket Resort - Sri Panwa Phuket

The Social Security Office, a department under the direction of Thailand’s Ministry of Labour, is being asked to explain its investment in the trust fund of Phuket’s Sri Panwa Phuket Resort. The demand comes as members of the opposition and political activists call for an investigation into the property’s land rights. The owner of Sri Panwa Phuket, Vorasit Issara, has been condemned online recently, with his property attracting multiple negative reviews, after he criticised anti-government protest leader, Panusaya Sithijirawattanakul.

Thai PBS World reports that the Civil Society for State Welfare is calling on the SSO to clarify its investment in the Sri Panwa Hospitality Real Estate Investment Trust, thought to be worth around 500 million baht. Nimit Thian-udom says that, while the SSO’s investment does not break any laws, the board must explain the reasons behind the investment decision and clarify the return on that investment. In addition, he says the SSO should attach more importance to good governance when choosing where to invest.

The call for clarity is echoed by opposition MP Chirayu Huangsap, from the Pheu Thai Party, who calls on the Labour Minister to explain the investment. He adds that any discrepancies will be reported to both the National Anti-Corruption Commission and the Public Sector Anti-Corruption Commission.

The land rights of the luxury Sri Panwa Phuket resort, which sits on prime land atop Phuket’s Cape Panwa, overlooking the south-eastern tip of the island, are also being called into question. Veera Somkwamkid, from the People’s Network Against Corruption, says he is looking into the property’s land rights and will pass his findings to the Department of Special Investigations.

For his part, the Labour Minister, Somsak Thepsuthin, says he doesn’t know if the property has been legally built, saying it’s up to the DSI to investigate and that a complaint does not need to be filed in order for them to do so.

Meanwhile, review site Tripadvisor has had to suspend reviews for the Sri Panwa resort, as anti-government netizens exact their revenge on the proprietor by posting negative feedback on the property.

“Due to a recent event that has attracted media attention and has caused an influx of review submissions that do not describe a first-hand experience, we have temporarily suspended publishing new reviews for this listing.”

SOURCE: Thai PBS World

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Business

Struggling airlines to get reprieve through small loans, extension to fuel tax cut

Maya Taylor

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Struggling airlines to get reprieve through small loans, extension to fuel tax cut | The Thaiger
PHOTO: TAT News

Airlines in Thailand are being offered a financial lifeline, as the Government Savings Bank announces soft loans for carriers left struggling as a result of the current Covid-19 ‘disruption’. Nation Thailand reports that the GSB is offering the loans over a 60 month period, with an annual interest rate of 2%. Chairman Patchara Anuntasilpa says the proposal will shortly be put to Cabinet for approval.

Airlines have been left financially devastated by the fallout from the ongoing Covid-19 pandemic, with countries closing their borders, passenger numbers plummeting, and carriers forced to slash the number of flights on offer. The services available, including the food services, were also curtailed early on as a preventative measure but that restriction has since been lifted. The effect is being keenly felt by all the airlines in Thailand, with the Kingdom’s borders closed to nearly all international traffic since March.

In a further effort to ease the financial crisis faced by Thai airlines, the Excise Department says it will extend the fuel tax cut for low-cost carriers by another 6 months from the end of this month. Patchara, who also serves as director-general of the Excise Department, says the tax may end up being abolished completely. In normal times, taxation on aviation fuel generates around 1 billion baht a year.

Air Asia has also cut some of its ground costs by using airport buses to ferry passengers from a cheaper aircraft parking area, back to the terminals, foregoing the costs of the airport airbridges. Flights from Phuket to Don Mueang, for example, are now a full ‘bus’ service, sometimes adding an additional 15 minutes at either end for the loading up of the buses and the trip to the planes or the terminal.

It’s understood the excise tax collected since October 2019 totals 503 billion baht, down more than 6.5% on last year’s figure. Most of the income comes from oil or oil products, cars, alcohol, and cigarettes.

SOURCE: Nation Thailand

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