Potential foreign investors in the Kingdom of Thailand should have an overview understanding of the legal structures of various entities in addition to their business knowledge in order to ensure their business methods and dealings are supported by knowledge of the basic differences of entities. In this article we would like to give an overview of business organizations which exist in the Kingdom of Thailand.

Business in Thailand can be widely conducted in the following forms:

Limited Liability Company:
In Thailand, the most common structure for conducting business is a limited liability company. A limited liability company, by law, is regarded as a juristic person with the right to own property (although with restrictions to ownership of real property for most limited liability companies with a majority foreign ownership) to and carry on business under its name. Limited liability companies have liabilities with respect to third parties which is separate from the individual liability of its shareholders. Shareholder liability in a limited liability company is limited to the value of an individual shareholder’s unpaid share capital. A limited liability company could be used for example for real estate business.

Public Company:
A public company is an entity incorporated for the purpose of offering shares to the public. The liability of shareholders is limited to the amount of the capital which remains unpaid on the shares held by them. The purpose of offering shares of the public company and the liability limit of its share holders must be clearly and specifically stated in the memorandum of association. As a public company receives money by offering its shares to the public a public company could be a preferred form of business for major enterprises or for companies which want to achieve fast growths in new economies.

Partnerships:
Unregistered Ordinary Partnerships:
An ordinary partnership is based on a contractual relationship between two or more persons to jointly invest and undertake a business with a view of sharing profits and loss derived wherefrom. All partners in an ordinary partnership are jointly and without limit, liable for all obligations of the partnership. The unregistered ordinary partnership could be used for various businesses but is not the preferred business form for real estate as it is not entitled to own property.

Registered Ordinary Partnerships:
An ordinary partnership can become incorporated as a juristic person by registering with the Minister of Commerce. A registered ordinary partnership is entitled to own property and is taxed as a corporate entity.
Limited Partnerships:
A limited partnership is a juristic person consisting of two groups of partners one of which comprises those whose liabilities are limited to the capital contributed and the other comprises those who are jointly and without limit, liable for all of the partnership’s obligations. Only an unlimited partner can manage a limited partnership. If a limited liability partner participates in the management, then he becomes an unlimited liability partner.

Joint Venture/Consortium:
Joint Venture:
An unincorporated joint venture is a contractual relationship between two or more parties, one of which must be a juristic person. It is generally organized to conduct a particular business project within a limited period. The joint venture is not recognized as a juristic entity under the Civil and Commercial Code. However, it is recognized under the Revenue Code. A joint venture could be used for example for projects in the real estate sector.

Consortium:
A consortium is also a contractual relationship between two or more parties. The distinction from a joint venture is that each party to a consortium maintains its separate identity relating to the business and is responsible for its own profits or losses. The consortium is not recognized as a legal entity under Thai law.
Branch of a Foreign Company:
Where a foreign company has a contract with a Thai government agency or a private organization to carry out a business project in Thailand, the foreign company may choose to perform such a project through a branch office. However, if the nature of the business falls within any of the restricted categories of the Foreign Business Act, a permit will be required before commencing the business activities. A branch office is regarded as the same legal entity as its head office. The head office, therefore, will be held responsible for all liabilities of the branch in Thailand.

Representative Office:
A representative office is considered as a non-trading office which is not permitted to conduct business with a view of profit. It is merely for the purpose of serving its head office overseas for the provision of information.

Regional Office:
A regional office is also considered as a non-trading office which is not permitted to conduct business with a view of profit. The regional office is a business organization established by a multinational company for the following purposes;
(a) Coordinating among branches or affiliates in the same region;
(b) Controlling the operation of branches or affiliates situated in the same region on behalf of the parent company; and
(c) Giving advice and services such as training of personnel, financial management, marketing control and sale promotion strategies, product development and research and development.

Sole proprietorship:
A sole proprietorship is normally a small business, as sole proprietorships are owned by a single person. The owner is solely responsible and liable for all obligations and liabilities of the sole proprietorship,. Sole proprietorships are not registered with the Ministry of Commerce.

Conclusion
Most foreign investors look at limited liability companies as their preferred method of investment, but perhaps don’t consider or are not familiar with the alternative modes of legal entity. It is certainly worth being familiar with the options, so that any choice can be made on an informed basis, and not necessarily following the majority for the sake of familiarity.

The Author of this article is Sebastian Kunz, Senior Associate at Limcharoen Hughes & Glanville (Phuket).

Posted under Investments & Financial Opportunities, Lifestyle, Uncategorized

Whether you are interested to buy or lease land in Thailand it is important to investigate the legal rights regarding the land you could receive by entering into an agreement. Thai law knows different land right classifications giving the beneficiary various levels of rights to land, ranging from occupation rights to full ownership rights.

As a potential buyer or lessee you should be aware of the fact that not all land rights grant a right to build a house on the land or can be even legally transferred. In this article we will review the land rights people may acquire in Thailand. We will review the different land classification rights in Thailand starting from the lesser rights up to full ownership rights.

What can you do with minor claims on land?
Minor claims on land are for example the Por. Tor. Bor. 5, the Nor. Sor. 2 and the Sor. Kor. 1. The Por. Tor. Bor. 5 is an evidence showing that the occupier of a land plot has been issued a tax number and has paid tax for using the benefit of the land. The issuance of Por. Tor. Bor. 5 is done without any survey by the authorities and grants no claim to the occupant. The document can be used as evidence towards proving possession against other private individuals, but not against the State. Another lesser claim is the Nor. Sor. 2. It serves to establish that the beneficiary has temporary rights to occupy the land. Nor. Sor. 2 certificates were issued on a transitional basis with the understanding that they would eventually be transformed into a certificate of use or full title ownership (please see below). If the respective land plot is under an evidence called Sor. Kor. 1 the holder of the document is entitled to occupy and utilize the land. The acquisition of a Sor. Kor. 1 is deemed the first step towards the issuance of a certificate of use or full title ownership (please see below). But still the Sor. Kor. 1 provides only a claim of ownership and not the right to ownership.

All lesser claims mentioned above have in common that no official permission to build a house may be granted on such land. Furthermore legally none of those documents are transferable except by inheritance. Only higher land rights will grant the right to build a house and are fully transferable. The highest claims on land are the Nor Sor Sam (NS-3) or certificate of utilization, the Nor Sor Sam Kor (NS-3K) or certified certificate of use and the Chanote (NS-4) claims.

What are the advantages of higher land rights?
The land title deeds Nor Sor Sam (NS-3) and Nor Sor Sam Kor (NS-3K) are legal land title certificates registered at and issued by the land department that show who has the right to possess the land and use the benefit of the land as an owner. Having such rights it is possible to register a lease, usufruct or sale at the land department. The name showing on such land title deed is the person who has the right to the land and has the legal right to possess the land. This right is recognized by law and can be used as evidence in any dispute.

The certificate of utilization or Nor Sor Sam (NS-3) shows that the owner has been granted the right to possess the land and use the benefit of the land as an owner, but these rights still have to be confirmed by the authorities. Despite the fact that the right is not yet confirmed, the law recognizes the right of possession of the NS-3 holder and the NS-3 may be used as evidence toward proving possession in any dispute. It can also be freely transferred and juristic acts may be registered on it. But as the right of possession evidenced by a NS-3 is not yet confirmed, any transaction or legal acts registered on a NS-3 must be published for 30 days to allow third parties to oppose the transaction.

The certified certificate of use or Nor. Sor. Sam Kor (NS-3K) is a certificate of possession as well. Like an NS-3, this document evidences the holder’s right to possess the land and obtain benefit from the land as an owner. But more than that, the NS-3K also evidences that the holder’s rights have been confirmed and certified by the authorities. As the right of use is confirmed, legal acts or transactions concerning the land do not need to be published. NS-3K claims have been more accurately surveyed than NS-3 and each plot of land is crossed referenced with a master survey of the area and a corresponding aerial photograph with points of reference on the map.

The Chanote title
Finally the Chanote title or Nor. Sor. 4 (NS-4) is the highest land title and mainly found in the more and longer developed areas of Thailand. Other than the land classification rights mentioned above the Chanote is the only land title deed certificate that offers full certified ownership of land. Land plots held under Chanotes are accurately surveyed and GPS plotted in relation to a national survey grid and marked by unique numbered marker posts set in the ground. Therefore Chanote titles are obviously the preferred title whether you buy or lease land in Thailand.

The Author of this article is Sebastian Kunz, Senior Associate at Limcharoen Hughes & Glanville (Phuket).

Posted under Uncategorized

It’s hot in Phuket, so how can we beat the heat?

Our bodies have the capacity to create a lot of heat, particularly internal heat. We normally cool ourselves by sweating, radiating this heat out through our skin and by our normal breathing. Under some circumstances, such as the unusually high temperatures found in the tropics, coupled with high humidity and vigorous exercise, our natural cooling system may begin to fail, allowing internal heat to build up, sometimes to dangerous levels. This increased heat manifests itself in various forms, from heat rash, heat cramps and heat exhaustion, to the potentially lethal heatstroke.

Heat rash is very common here in Phuket. It’s sometimes referred to as prickly heat, sweat rash or miliaria, and new Phuket residents and visitors may find that they develop this condition, as they become accustomed to the heat and humidity. A rash of red or pink dots is generally found on the body, particularly those areas covered by clothing. The dots can look like pimples. It occurs because the sweat ducts become blocked and swell, which can cause discomfort and itching. The rash areas may get irritated by clothing or scratching, and a skin infection will then occur. Most heat rashes heal themselves without problems, with the use of common treatments readily available from supermarkets and pharmacies. Good personal hygiene is also important. If you think you’ve an infection, you should seek medical advice.

Heat cramps occur in muscles after exercise because sweating causes the body to lose water, salt and minerals (electrolytes). The loss of salt and water affects the exercised muscles, which cramp and become painful. Leg muscles, such as the calf or thigh muscles, are usually the most affected. To prevent heat cramps, drink a rehydration or sports drink, such as Gatorade, or take the readily available ORS solutions that you mix with water. People who are adequately hydrated are less likely to experience heat cramps. It’s incorrect to take salt as this is absorbed slowly and is likely to cause stomach irritation. Taking salt can also aggravate the water loss problem, as it will pull fluid from the tissues into the blood system. If you get heat cramps whilst exercising, you should stop physical activity, gently massage and stretch the affected area. Don’t resume vigorous exercise until the heat cramps have gone, as it’s possible to tear and cause serious injury to muscle and soft tissue.

Many people get swollen hands, feet or ankles when they sit or stand for a long time while in a hot environment. This is referred to as heat edema. Heat causes the blood vessels to dilate, so that body fluid is moved into the hands or legs by gravity. The balance of salt in the body is also a risk factor for heat edema. If salt loss is less than normal, the increased salt level draws fluid by gravity into the hands and legs. Older adults have an increased risk of heat edema, especially if they’ve other medical conditions that affect their circulation. Heat edema is also common in women during pregnancy. The best treatment is to use gravity to put the excessive fluid back into the right places, so elevate your feet. This will reduce the swelling. If the edema becomes excessive, to the extent that it affects your daily activities, or it’s painful to walk, consult your doctor. He may give you some medication to get rid of the extra fluid, and correct any fluid balance problems that may become evident.

Heat exhaustion or sunstroke occurs when a person can’t sweat enough to cool the body. It generally develops when a person is working or exercising in hot weather. Symptoms of heat exhaustion include fatigue, weakness, headache, dizziness, and nausea, and skin that is cool, moist and pale, or flushed. Mild cases of heat exhaustion can be treated at home. Keep cool; air-conditioned spaces are best, and use cold towels and water to cool the body. Applying cold compresses to the head, armpits and groin is most effective.

Heat exhaustion can sometimes lead to heatstroke, which requires emergency treatment. Also known as ‘Core Temperature Emergency’, heat stroke is potentially fatal. In this condition, the body’s temperature regulation centre in the brain has been rendered inoperable, and the temperature continues to rise, causing eventual brain damage. Immediate active intervention is necessary to avoid coma and death. To treat heat stroke, immediate cooling of the body is required. Remove clothing. Use ice packs to the neck, groin and armpits. Cover with a wet sheet and use a fan or air-conditioning if available, and be prepared to resuscitate.

Taking minor precautions, drinking lots of fluid and replacing electrolytes can go a long way in beating the heat, particularly if you exercise. You should also remember that your urine output is a good indication of your hydration status, and as well as preventing kidney stones, drinking lots of fluid is generally good for you. If you’re only urinating every three to five hours, or if your urine smells offensive, or is not a light straw color, you aren’t drinking enough.

Peter Davison is the Manager International Services at Phuket International Hospital.
Tel: +66 (0)76 249400, Email: info@phuketinternationalhospital.com

Posted under Health, Lifestyle, Travel & Tourism

Background of Law and Ownership Restrictions
Each year more people are interested in purchasing real estate outside their home countries. There are mainly two reasons for purchasing real estate overseas. The first reason is to purchase real estate as an investment and the second reason would be a more immaterial reason; namely to own a property in a country you like for the purpose of spending your future holiday or your retirement in the relevant property. Especially those people aiming to fulfill their dreams by purchasing real estate overseas are surprisingly often too careless and do not ask for any legal advice nor exercise proper precaution.

Potential foreign investors in real estate in Thailand should keep in mind that under the Thai Land Code there is a general prohibited for foreigners to own or control land directly or indirectly in Thailand. The control and security of land is an essential element of any real estate ownership. Therefore, besides the option of owning a freehold apartment in a condominium (please see below), there is generally no direct freehold ownership of real estate available for foreign individuals in Thailand. Moreover the ownership of land is although not open to foreign companies; including BVI companies or any other foreign juristic entity except through special procedures for projects under the Board of Investment. Generally, foreign companies may only, similar to foreign individuals, have a minority interest in a Thai company owning the relevant real estate.

In theory, as mentioned above, there are exemptions of the above mentioned basic principle: Foreign individuals can own land up to 1 Rai (1600 square metres) under Land Code Amendment Act for residential purposes through a Board of Investment license which requires a 40 million Baht investment into Thailand in specified assets or government bonds beneficial to the Thai economy. In practice, even if you would be able to make an additional investment in the Thai economy of 40 million baht, this is not generally a viable option for a ‘second home’. The mentioned exception requires approval of the Minister of Interior and, if granted, is under strict conditions and in specified areas only.

Ownership and Security is Available, and Thailand Property Investment Market is Mature
The most straightforward option for foreigners considering purchasing real estate in Thailand is to purchase a condominium according to the Thai Condominium Act. The process is simple and safe in terms of legal ownership and allows the buyer to own the property freehold. For a foreign buyer wishing to purchase real estate other than a condominium (e.g. house or villa) there are numerous options available for securing an investment in property. Buyers may further acquire other property rights, such as usufruct or mortgage. Thai law further allows foreign individuals to own buildings or register a right of habitation for a building. Which of the numerous options available under Thai law suits the foreign buyer best, has to be analyzed for each specific case, as for each option different legal matters should be considered. Notwithstanding, the trends in the marketplace point towards successful use of leasehold structures providing properly secured renewals, lease sales from public companies, and sales of foreign quota condominium units.

In any case each investor in real estate in Thailand should carry out due diligence of the property before making its final decision. In connection to real estate due diligence means, that the property legal information should be investigated and inspected by a competent legal advisor. Due Diligence for real estate could be divided in three main types. These types are physical, legal and financial due diligence. While the legal and financial due diligence are more about checking the documents and laws applicable to the property, the physical due diligence involves testing of the property and physical inspections. The legal due diligence will include a review of all legal agreements related to the transaction. It is important that the legal adviser conducts a title search, because it is important for the investor to learn of the history of the title deed, to check if the title deed was lawfully issued and that there are no encumbrances of any kind registered. Furthermore the legal advisor will give detailed explanations on zoning and building regulations applicable to the land and whether there is an access to a public road from the subject land plot. For the due diligence of financial issues it is needed to conduct an analysis of the financial statements of the developer.

Some foreign investors make some practical mistakes, such as developing too friendly a relationship with the seller/developer and then they start to feel uncomfortable to ask too many questions or investigate the property seriously. Another poor shortcut is that many foreigners do not want to include the extra investment for proper due diligence and legal advice in their estimated investment for the real estate when in their domestic countries they would most likely never contemplate dispensing with legal advice.
Investing in a property in Thailand can be a good decision for foreigners and having an own place for holidays or retirement can be a wonderful experience. If foreign investors plan their investments in advance and include external experts in their decision making their experiences with real estate in Thailand will be more secure and satisfying.

Limcharoen Hughes & Glanville

Posted under Investments & Financial Opportunities, Property News

Alastair Carthew examines what causes ‘fear of flying’, explores the logic behind the phobia – and even tells you how to overcome it.

As visitors to Phuket prepare to board an aircraft at Phuket International Airport after their dream holiday, a small percentage will be afraid, very afraid. It’s called ‘fear of flying’, a phobia and form of psychological trauma that grips the individual with, usually irrational, fears that the aircraft they are boarding will suffer some catastrophic event.

But they should take some heart from statistics compiled by the United States Department of Transportation, which concluded that airline travel is 29 times SAFER than driving an automobile. However, perhaps statistics themselves don’t help, as fear of flying has little to with risk, as such.

For example, if the fear of flying was actually caused by the potential for an accident, then everyone who fears to fly would be more afraid – 29 times more afraid to be statistically exact – to drive or ride in an automobile (or on Phuket it’s probably more like 80 times more afraid if you ride a motorcycle!!)
So what causes of fear of flying? Firstly, a lack of information about aviation procedures, secondly some sort of psychological trauma resulting from an aircraft incident and, thirdly, a symbolic transference of some personal conflict to the experience of flying. In other words, there’s always some chance of an accident while flying, just as there is in any other activity.

In turn research has shown there are ‘cognitive coping strategies’ that trigger the fear of flying. Rumination, or thinking over and over again about the situation. Self blame, which refers to thinking a lot about mistakes you’ve made. Acceptance (or resignation), which refers to thinking that you have no option but to helplessly accept things as they are. And, catatrophising, which refers to thinking about how awful the situation is, or could become.

So despite the statistics, passengers can be forgiven for sitting frozen in fear while flying. However, they should take heart from two recent examples of how the experience and training of the pilot saved the entire aircraft from disaster.

These were the ‘Miracle on the Hudson’, where a US Airways pilot landed the aircraft safely in the middle of New York’s Hudson River, and a more recent one where a Qantas Airlines pilot calmly landed a giant Airbus A380 with its engine on fire at Singapore’s Changi International Airport. Both safe landings resulted from the fact that pilots today are highly trained to cope with such situations.

Still, these were unusual events. The simple fact is that man was not designed to fly. Consequently, whenever people with a fear of flying get into a ‘flying machine’ they confront their deepest fears of human vulnerability. It’s not so much that flying is unnatural but that we find ourselves way up in the sky at 32,000 feet in temperatures of -40C outside and flying at speeds of up to 800 kmh, sealed in a machine with no escape if something goes wrong.

Well, actually, flying at 32,000 feet is probably the safest part of a journey. Most aircraft accidents occur at takeoff or landing, more often than not involving pilot error rather than mechanical failure.
Fear of flying is more about what might happen than what actually is happening. Contributing phobias include: heights, enclosed spaces, crowded conditions; having to wait passively, not understanding the reasons for unfamiliar actions, sounds and sensations around you, worrying about turbulence, depending on unknown mechanical things to keep you safe, depending on an unknown pilot’s judgment, not being in control, and more.

These fears can lead to a psychological reaction that causes muscle tension, tremors, heavy, laboured breathing, heart palpitations and chest pain, abdominal and intestinal discomfort, weakness, dizziness, dry mouth, and a flush, or pale, face. The psychological symptoms include impaired memory, narrowed perceptions, poor or clouded judgment and negative expectations.

Help! What a mess. So how do you overcome fear of flying? Here are a few suggestions. Obtain information about the principles of flight and flight safety, specially related to frequent occurrences such as turbulence. Seek courses on negative thoughts to treat the symptoms of fear of flying. There are clinics on desensitisation to help overcome phobias. Most people with a serious fear of flying undertake such courses. Some people look to their God for help.

As if that were not enough to cope with, many people also suffer from air sickness which is caused by the brain becoming confused by the messages it is receiving. This results, in flight, in something called aerophobia, which could be triggered by certain things like the sounds, smells, necessity to queue and large crowds at the airport.

Solutions? Book or request when checking in a seat near the aircraft wing, which is more stable to reduce the impact of air sickness. Use an i-pod or some other portable device to distract you, close your eyes and use the headrest to stabilize your body, avoid large meals and alcohol before and during the flight and eat things like ginger biscuits or mint sweets. Whatever it takes to reduce the impact of air sickness.
All of which makes for a very enlightening and happy column.

Alastair Carthew is a journalist, broadcaster, public relations counsellor and writer, living on Phuket.

Posted under Health, Investments & Financial Opportunities, Lifestyle, Travel & Tourism

As I write, I’m in Lima, Peru. I’ve just made a memorable visit to Cusco, Machu Picchu and the Sacred Valley. I’d recommend anyone who hasn’t been there, to go. If you do, make sure you travel from Cusco to Machu Picchu by train (incarail.com). This is a very good, family-run business providing the personal touch.
Peru is a bit like Thailand in that it has a very large tourist industry and whilst most tourists come to Phuket for its beaches and beautiful coastal scenery, visitors to Peru are there to absorb its antiquities and majestic mountain scenery. The capital City of Lima is also fascinating, with many museums and other places of interest. Unlike Thailand, foreigners can own property and the land upon which it is built. Land and property prices, although much higher than they were say five years ago, are still relatively cheap compared to Phuket. For four million baht you can buy a 1,000-metre plot and build a quality house in the Sacred Valley. The mountain views are superb.

Peru hasn’t got a large manufacturing base, but like Australia is very rich in minerals. Copper is the major ore mined. It also has a large service sector and, as mentioned above, a tourist industry that is expanding fast.

Readers who follow the economic fortunes of South American countries will know of the remarkable growth these countries have enjoyed recently. Brazil, of course, is also very rich in minerals and, in addition has a vast and varied manufacturing base. In fact, one of the planes I flew on whilst over here was manufactured in Brazil so there’s some competition here for Boeing and Airbus. It is, of course, one of the countries featured in the BRIC Funds. The ‘B’ stands for Brazil and the other components are Russia, India and China. There are also many good Latin American funds around, and one of my favourites is the Findlay Park Latin America Fund. This has an excellent track record, having risen by 50% in the last year alone.

On a different topic, I know that many readers are concerned about bank interest rates which are presently at an historic low. We know inflation is also low, but we all like to see a good return from our bank deposits.
For a limited period, there’s currently an investment available from a UK-based bank which is paying 5% p.a.on Pound Sterling, Euro and US Dollar deposits and 12% on Australian Dollars. It’s a split investment with a capital guarantee. The minimum outlay is only £10,000 or currency equivalent. 50% of the amount is held on deposit for one year and the capital and interest is then returned. The other 50% is paid into a stock market index for a further four years. If the value of this investment increases, this will generate a profit. If, on the other hand, after five years the index is lower, Investors will receive back 100% of their original capital.

George Lindsay is Wealth Manager at Expat Solutions

Posted under Investments & Financial Opportunities, Property News, Travel & Tourism, Uncategorized

Living in Phuket, we’re all constantly surrounded by delicious food to eat, and the need to take on vast amounts of liquid i.e. beer. This is all well and good, providing we work it off later. Our medical correspondent has been researching the options.

My mind recently has been on my ever-expanding stomach, and fitness and sports in Phuket. But what is available as staying fit and healthy in Phuket can be a chore, as the availability of facilities is seen as limited, and the prevailing heat when exercising outdoors, restrictive to some. With a little planning and awareness, it’s possible to get the most out of life here without damaging your health in the process.
There are a number of places and groups on the island that are committed to helping people keep fit, as well as having a great time often with a few beers to polish off the exercise afterwards.

If doing exercise solo is your thing, lately there’s been a large increase, all over the island, of health and fitness gyms. Gym work is an excellent way of maintaining fitness, particularly for those who wish to exercise and work out in air-conditioned comfort, whilst watching TV. There are too many gyms to mention here in this article, so ask around in your area for what’s available. Most offer day, monthly or yearly membership and many have a Thai, resident or tourist pricing policy. Some include spa, sauna/steam baths, personal trainers and aerobics classes whilst some of the major hotel chains offer packages which include swimming pool, tennis and squash court access. Some of the housing estates around Phuket such as Land and House on Chao Fa Road and the Phuket Villa developments also allow outside members to join and use their facilities.

At Saphan Hin, where many facilities have seen better days, there are extensive ranges of facilities on offer including tennis, basketball and badminton courts, football pitches, a gym, as well as daily classes of tae kwon do. Membership is available; as are casual visits. It’s a challenge to find out what is open and when, and how much things cost, so I suggest you have a native speaker call or, better still, go with you to inspect facilities and discuss options. There are also some good jogging trails around the area.

For running, and you need to keep away from the traffic or off the beach, try Suan Luang Park which also has t’ai chi, or the Hash House Harriers (HHH) – dubbed ‘the drinking club with a running problem’. HHH organizes weekly runs and meets every Saturday at the Expat Hotel, Patong. See www.phuket-hhh.com.
For some beach exercise and those wanting to try beach volleyball, an informal group has played on Karon Beach just north of the circle, for several years. Drop in on a game on Friday afternoons at around 5pm. For rugby there’s the local club, Phuket Vagabonds, which organizes regular matches and tournaments. www.phuketvagabondsrfc.com.

Upping the excitement level, and for those looking for an adrenaline rush, kite surfing is available for all ages at Nai Yang Beach during low season, and Chalong Bay during the high season. See www.kitesurfingphuket.com for more information. There’s also cricket with regular matches played at the school near the entrance to Laguna each Sunday, and the occasional touring side visiting to play. Check www.phuketcricket.com for details.

Muay Thai is also popular and there are about four or five Thai boxing centres in Phuket, mostly in the Chalong Kata area and one near Phuket Zoo. They not only provide instruction in this art, which is rapidly increasing in popularity with clients from overseas, but also offer fitness programs.

Surprisingly, getting a game of soccer is easy, with the game being played all over Phuket on some good, and some not-so-good pitches. Mostly played by friendly Thais, the actual games can be competitive and most will welcome a foreigner to join in for a kick-around.

Aerobics, the exercise of choice for many Thai ladies, appears to change homes frequently, although you can usually get a good workout during the evenings at the main Tesco superstore car park and at Suan Luang Park.

There’s also golf, and with an increasing number of courses on the island, it can be expensive; much cheaper if you leave the buggy in the shed and walk the course. The Phuket Expat Golf Society has regular tournaments and can offer discounted green fees for residents. There are also regular tournaments, some serious, some more fun and Loch Palm has a discount yearly membership program for Phuket residents.
Taking part in the mini- or full triathlons is another option, and I see the interest in bike-riding expanding on the island.

Finally, there are the pubs which organize a range of sports more suited to lounge lizards and couch potatoes. Whilst darts and pool may not get you fit, it can take you away from watching the TV.

Peter Davison is the Manager International Services at Phuket International Hospital.
Tel: +66 (0)76 249400. Email: info@phuketinternationalhospital.com.

Posted under Health, Lifestyle, Uncategorized

Airline alliances, in which companies share routes and facilities, have become a significant aspect of the aviation world. Are these pacts quasi-monopolistic cartels or ‘customer friendly’ rationalisations?

The world of airline alliances is changing rapidly, adding a new competitive edge to the companies which serve Phuket.

Air Berlin, which flies directly to the island, is set to become the first low-cost carrier to become a full alliance member. It will join the Oneworld alliance in 2012. In another development, the flamboyant British billionaire Richard Branson is looking to form a fourth global alliance, building on his Virgin Group which services Phuket with its carriers, Pacific Blue and V Australia.

Other alliances whose members operate services to Phuket include Oneworld with Aeroflot and Finnair; Star Alliance with Thai Airways International and Asiana Airlines; and SkyTeam with China Southern Airlines and Korean Air. Of course, this is just the tip of the iceberg. With the code-sharing system, which is a cornerstone of the airline alliance model, there are many cross linkages.

The three established alliances, Star Alliance, Oneworld and SkyTeam account for 73% of the world’s airline capacity and this is growing. S7 of Russia and Kingfisher Airlines of India are due to join Oneworld. Russia and India are two emerging markets for Phuket’s tourism industry. The 28-member Star Alliance will soon acquire Air India and Ethiopian Airlines. Next year, the 13-member SkyTeam alliance is expected to take in China Eastern, the country’s largest airline. To give you an idea of the size of these groupings, Star Alliance carry around 627 million passengers a year and SkyTeam and Oneworld together, account for a further 720 million. The non-aligned carriers, by comparison, can only manage 489 million passengers between them.
However, the non-aligned group still includes some impressive carriers such as Virgin Atlantic; Virgin America; Southwest in the United States (the most successful low-cost carrier in history); Transaero (a large Russian carrier that flies directly to Phuket); and China Airlines of Taiwan. An interesting fact is that the Middle Eastern airlines sector which includes Emirates, Etihad Airways, Gulf Air, Qatar Airways, and Saudi Arabian Airways, only has two members in an alliance, Turkish Airlines and Egypt Air, both in the Star Alliance stable.

In Asia there are also still many major airlines which aren’t aligned. The independent group includes Hainan Airlines, Jet Airways, Malaysia Airlines, Pakistan International and Philippine Airlines.

But how does the customer benefit from all of this alliance activity? Probably the most important for many is the ability to accrue common ‘frequent flyer miles’ from each alliance carrier. Alliances also have sufficient critical mass to negotiate lower prices for items such as advertising, and even fuel in certain circumstances. This helps to keep fares low. Code-sharing means that they can offer more departure times on any given route and put more destinations within easy reach. Their round-the-world packages and regional fare concessions can be great value for money.

Other benefits include priority access to alliance branded lounges with silver and gold frequent-flyer cards, and priority check-in. With all alliance airlines under one roof in the same part of a terminal, access and transfers is simplified. Seamless software means that member airlines can readily track each other’s schedules and adjust them to eliminate conflicts and bottlenecks.

The reason for the growth of alliances was the advent of ‘open skies’ agreements, which made it easier for airlines to gain unrestricted landing rights within de-regulated zones. Anti-trust protocols still make joining an alliance difficult, particularly for American carriers, but major advances have been made to enable mega-carriers like British Airways and American Airlines of Oneworld, and United Airlines and Lufthansa of Star Alliance, to form trans-Atlantic linkages.

It is not all ‘plain sailing’ (should that read ‘flying?) for the alliances, however: more like swings and roundabouts. They‘ve all gained and then lost members. Star Alliance acquired Ansett Airlines of Australia in 1999 and then it folded in 2001. It also lost Mexican of Mexico and Varig of Brazil to Oneworld. SkyTeam lost Continental to Star Alliance and ejected Northwest Airlines. Oneworld had to relinquish Canadian Airlines when it was acquired by Air Canada: a Star Alliance founding member. Aer Lingus of Ireland lost eligibility when it became a low-cost carrier.

Mix and match.

Alastair Carthew is a journalist, broadcaster, public relations counsellor and writer, living on Phuket.

Posted under Health, Investments & Financial Opportunities, Uncategorized

Forget the Icelandic volcano spewing ash and exposing the real or invented vulnerability of European aviation to cataclysmic eruptions; forget biofuels and how they could save the industry in the long term; forget the explosion of budget carriers throughout Asia, forget even the impending introduction of the Boeing B787 Dreamliner. Instead let’s take a look at some of the more unusual, even bizarre, events which have made the aviation headlines in 2010.

First, enter the humble peanut. The US Department of Transportation, in its infinite wisdom, recently announced that it was banning this salty snack on commercial flights under its control, because of the allergic reaction to peanuts which some people experience. The announcement provoked a furious response (nut rage?) from the American public, who are apparently addicted to the small briny nibble, which precedes the first ‘free’ drink on board. It’s good to know that when it really matters the great United States ‘vox populi’ can still make itself heard.

Okay, so the argument went, there’s a section of the public which suffer from the allergy and they must lead a miserable, deprived existence, but it’s hard to believe that they’d be unaware of the problem by the time they board their first aeroplane. I mean, Americans put peanuts in everything from sundaes to, um, peanut butter. For goodness sake, lots of people are lactose intolerant – so no more milk on planes? Others are caffeine sensitive – no more coffee? Where do you stop? In the face of all this furore, the DOT hastily backtracked, and the aerial peanut survived to delight again.

You might have missed the strange case of a stowaway’s body found in the landing gear of an Airbus 320 after it landed at Riyadh’s King Khaled International Airport in Saudi Arabia? The man apparently managed to mount the wheel strut in Beirut without the control tower noticing. Passengers later reported seeing a man in a baseball cap and a backpack dashing toward the plane as it taxied. Sadly, he never lived to tell the tale. However, cases of stowaways hitching rides on aircraft undercarriages are not uncommon – and some have, miraculously, survived.

For those who prefer a more comfortable ride there’s the new Aircruise, a luxurious airship conceived as a flying hotel, which will transport travellers in leisurely style and splendour. The airship’s designer says it’s aimed at people wanting a ‘more serene transport experience; looking for a reflective journey’. Nick Talbot, for it is he, also designed the world’s first private spaceship, Virgin Galactic.

The plane will carry up to 100 passengers and offers an ultra-modern cocktail bar and guest lounge, a penthouse, four duplex apartments and several smaller apartments. Personally I’d go for it.

Then there’s solar-powered flight. In Switzerland, in early July, an experimental solar-powered aircraft took off on an historic journey. The single-seater plane has a giant airliner-sized wingspan (at 63 metres, equivalent to that of an Airbus A340), and relies on 12,000 solar cells and almost half a ton of batteries for motive power. The aircraft flew 8,500 metres before making a slow night-time descent. The seven-year project has the objective ultimately of flying around the world on solar energy.

Finally, there was a case of good old-fashioned air rage. A German football fan was given a suspended jail term for shoving airline cabin crew after his flight was denied landing permission in Durban, South Africa. The man was among hundreds of fans who missed the Germany-Spain semi-final match because of landing problems at King Shak International Airport in Durban. Apparently the man had pushed the crew, screamed, sworn and refused repeated commands to return to his seat: normal fan behaviour in the UK.

Air rage is still quite common on commercial flights – usually accompanied by too much alcohol, but this is probably a first in the World Cup annals. In declining to award a custodial sentence the sympathetic judge said, “I’m not going to add to your burden.”

Then, did you catch the one about the chubby queen of a small Pacific Island nation who got stuck in the aircraft toilet – a right royal jam? Remember, you heard it here first.

Alastair Carthew is a journalist, broadcaster, public relations counsellor and writer, living on Phuket.

Posted under Uncategorized

The problem with running a successful airport is that the devil’s often in the detail. Here are some ‘details’ to which our local airport management might well pay attention.

News that Phuket International Airport’s 5.70 billion baht expansion is moving ahead will delight anybody on the island who depends on tourism (which one way and another, is just about everybody). Despite political and economic upheavals all the signs are that Phuket will continue to attract ever-increasing numbers of visitors in the coming years.

The upgrade will modernise an airport that many people still see as a somewhat dowdy dowager standing at the gateway of a fabulously glamorous paradise location. The plan is to increase the capacity by 92% over the next five years. In numbers, that translates to around 12 to 13 million customers per annum.

This effort to increase volumes is all well and good, but the powers-that-be also need to look at what can be done to give the airport that little bit of extra ‘value-added’.

The Airports Council International, the global body representing airports around the world, gives airports ‘marks out of ten’ for the quality of services offered to passengers. At the moment PIA doesn’t even qualify for rating – though, to be fair, this is partly because it’s quite small. However, the council’s research into what constitutes good service is salutary. This month we look at two areas which might touch a nerve at PIA: internet services and baggage trolleys.

First, let’s look at internet services. ACI estimates that over nine billion passengers will use the world’s airports by 2025 – up from four billion in 2006. The vast majority of these will demand that connectivity is routinely available particularly if they have an hour or so to kill in the departure lounge. Just consider this. Indonesia, where English is not commonly spoken, ranks third behind the US and UK in numbers of Facebook users.
Phuket attracts huge numbers of tourists from the likes of Japan, India, China, Korea and Malaysia. It’s worth noting that as of 2009 China had 384 million Internet users; Japan, 96 million; India, 81 million; Korea, 37.5 million and Malaysia, 16.9 million. Oh, and don’t forget Thailand itself with 16 million.
An ACI survey on the provision of airport Wi-Fi services around the world found:

• 96% of airports provided Wi-Fi.
• 73% had total airport coverage.
• 90% of Wi-Fi availability was in the gate and restaurant areas; 82% in the transit, shopping and airport lounge areas; and 59% in the check-in area.
• 55% charged for access.
• 46% accepted payment by credit card and a surprising 17%, by mobile phone.
• The average cost of Wi-Fi services was USD7.8 per hour. Ouch!
• 70% of airports also had work stations located throughout the terminal for people without laptops.

These numbers tell their own story.

Now let’s look at the humble baggage cart – an item that Suvarnabhumi Airport originally forgot to provide. While PIA is a small airport (so distances walked are relatively short) the adequate provision of baggage carts is still important. The airport caters mainly for tourists who tend to carry more, and larger, bags than businessmen on a quick trip.

The ACI survey found:

• 60% of airports offer an airside cart service.
• 62% of carts can be used on walkways.
• 88% cannot be used on escalators – obviously a tricky one.
• 90% can be used in lifts.
• 44% of carts have a braking system.
• 60% of carts carry advertisements – one wonders why, and for what.

We want tourists to go home with armfuls of souvenirs and duty-free goodies, so let’s make sure that they can get them from the drop-off point to the departure lounge without hiring Sherpas.

Finally, PIA might like to consider participating in ACI’s Airport Service Quality survey system. This provides an impartial, unbiased, statistically-reliable appraisal of airport service levels as experienced by passengers. ASQ is the world’s leading airport benchmarking programme. Suvarnabhumi Airport in Bangkok participates in the Asia Pacific section of the survey.

It’s time PIA stuck it’s head above the parapet.

Alastair Carthew is a journalist, broadcaster, public relations counsellor and writer, living on Phuket.

Posted under Lifestyle, Travel & Tourism