Analysis: Elite Card fails to impress

[elef]

Analysis: Elite Card fails to impress

 

Published on Jul 14, 2004

 

 

Shortly after his appointment as deputy prime minister in charge of tourism, Suwat Liptapanlop signalled his support for the ill-fated Elite Card project to move ahead by devising new marketing measures to attract members.

 

Yet those working in the tourism industry argue that no matter how many times the government tries to adjust the Elite Card programme, it still does not look viable.

 

On Monday, Suwat met for the first time with top executives of the Tourism Authority of Thailand (TAT) to lay down his tourism policy.

 

He insisted to the TAT policymakers that the government would not back down from the Elite Card project but would like to use it to entice foreigners to choose Thailand as their second home.

 

The project has been controversial from the outset due to its ambitious target and unconventional programme.

 

Prime Minister Thaksin Shinawatra would like Thailand to earn Bt1 trillion in foreign exchange from the project in five years through the programme?s Bt1-million membership fee.

 

The world?s first country privilege membership offers a large array of incentives for members such as free first-class travel on national carrier Thai Airways International, VIP treatment on arrival in Thailand, a five-year, multiple-entry visa and the chance to ?buy? land. It also allows members access to golf courses, hospitals, spas, hotels and a host of other services.

 

If one million members sign up, Thaksin said the country would reap a Bt1-trillion foreign-exchange windfall.

 

However, the programme has got off to a sluggish start. So far only 600 cards have been issued, many of which have been distributed free of charge to potential members. Now Thailand Privilege Card Co, the operator of the Elite Card, has been forced to cut back its membership target to 118,000.

 

According to sources, Suwat told TAT executives that the project was still on track even though the company had downgraded its target to a more realistic level.

 

Prakit Chinamournpong, vice president of the Thai Hotels Association, said the Elite Card had yet to generate enthusiasm among high-end visitors to Thailand.

 

He said that very few card members used the privileges offered in the membership.

 

?Since the establishment of the Elite Card, the tourism and hotel sectors have not yet received any benefits from it because none of its members show up to use the services. We have not seen any five-star hotels participating in this programme,? Prakit said.

 

The association is currently seeking information from its members nationwide to gauge the extent of the card?s usage at its associated hotels and resorts.

 

The company has appointed Patco Siam Holding Co as its marketing representative for Singapore and Malaysia, where the Elite Card company will try to attract wealthy tourists to subscribe to the card. The company is trying to attract some 5,000 members in those two countries.

 

Paiboon Tilunouad, president of the Federation of Thai Spas, said spa operators had earlier sought to join in the Elite Card programme but now Thailand Privilege Card would like to reduce the number of the participating spa facilities.

 

?They should have given notice in advance before severing ties with the spa operators,? Paiboon said.

 

Choksiri Rodboonpha, president of Thailand Privilege Card, said that in the next week his company would appoint two new sales agents to market the card in South Korea and Japan. It was also planning to appoint marketing representatives in the US, France, the UK and Russia.

 

Affiliate cards will be issued to complement the elite cards. The affiliate cards? validity period will be longer and will come with better conditions.

 

However, Thailand Privilege Card plans to cut the total alliance of 350 participating hotels, spas, hospitals and golf courses by 20 to 25 per cent.

 

Suchat Sritama

 

 

 

The Nation

[Straycat]

Good luck

[Guest]

I love following this. It's just such a white elephant. Most absurd part was "...told TAT executives that the project was still on track...". This has been the party line despite it being obvious from the beginning this was a farce and the numbers just keep adding support to that. The forecast started as 1 million over 5 years. They put in the new guy who originally claimed 60,000 in the first year. Now I see him touting 118,000 over 5 years. Can't wait for the next report for a good laugh. The worst part is the 600 sold is not even real; they are believed to have given away many for favors or trades.

[pattaya127]

Thai authorities at their spinning best. Oh, my head.....

[stonepony]

Downgrade their projection from 1 million to 118,000 and they are still on target. Only in Thailand !!!

[Coss]

On that basis if they achieve 13,925 it'll be a resounding success.

 

Cheers

 

Coss

[Fatbastard]

The news that Land ownership perk is off the list of priviliges (even for those who had already purchased the card) isn't going to help. For those poor suckers who brought the card to get some land are now told , "sorry cannot do due to legal complications" must feel slighty pissed. Talk about misjuging the market opportunity

[jasmine]

[color:"red"]"sorry cannot do due to legal complications" must feel slighty pissed. Talk about misjuging the market opportunity [/color]

 

When I first read about the card, I thought it was very misleading, very misleading on the issue of land ownership. However, it is difficult to convince people that land ownership law will never change for foreigners and I tried with several Westerners.

 

I feel that misleading is not a good idea, and for some reasons, I feel that the whole scheam was just for the immediate money which in many ways is not a bad approach.

 

OK, I should stop writing about the Thai politics, I do need the visa to enter Thailand!!!

 

Jasmine

[Guest]

Not doubt we'll soon read in the future that either the 5-year 118,000 member goal will be reduced...or the card fee reduced along with the benefits and the goal increased.

 

And if the card fee is reduced, along with the already recinded option to buy property, they'll also eliminate the other benefits such as as free first-class travel on Thai Airways, VIP treatment on arrival, land, a five-year, multiple-entry visa and most of the discounts at golf courses, hospitals, spas, hotels and a host of other services.

 

It now the year 2007 and they are still beating a dead horse (oops...elephant or Soi dog). Anyone can buy the 'new' Elite card for a mere 99.95 and the membership goal is now 1-billion members. The benefits include being wai'ed upon arrival at the airport, a 'special' non-AC orange bus will take you downtown for free, you will receive discount coupons for Subway, Burger King and six different Thai foodstands conviently located in various parts of BKK and a free one-way klong boat ride.

 

Ahh, TIT!

[llso]

I laughed the first time I seen this proposal for the elite card. I mean you have got to have a lot of disposable income to spend a million baht.

Intersting how they came up with the price , Some big shots are sitting around scheming this up and say well how much are we going to charge. Let's see a million Baht sounds good.

 

I think had they made the price a bit more reasonab;e say 250 K or something like that a lot more people would have been interested. Now the whole thing has lost credibilty. Especially with the co. not even located in Thailand but in Singapore.

 

AS it stands now you can get a retirement visa with 800 K in the bank and its yours. You can but a condo already and there is the co. or lease option for other property.

 

Will be intersting to see what happens with this in the future.

 

LL