Promotion of tourism: an interview (part 2)
Int: Sawadee crab, Kuhn Pipat. Why are you calling? We had an appointment for the end of November, or am I wrong?
Pip: No, you are right, but developments in tourism policy have been going very fast in recent days. The government, i.e. Kuhn Too and I, would like to score in the short term.
Int: Yes, one question: how does that actually work in cabinet meetings? Does the entire cabinet always and jointly decide?
Piper: Hahaha. No. That's not how it works. The Prime Minister is in charge. That has been the case for decades. The ministers have their own shop (we jokingly call it papa and mama shop because of cronyism), they are allowed to come up with nice plans, but it is important to put the proposals to the MP for the week. Otherwise you can shake it. In the time of Yingluck and Somchai it worked a bit differently because they had nothing to crumble in the milk. Then all proposals went to Dubai. But the decisions were made by the family, as it should be.
Int: Well, for the day with those new proposals I'd say.
Pipe: Okay. The main aim of the proposals is that foreign tourists in particular will spend more in this country. And you know: more money means more economic activity and more jobs.
Int: Yes, I get that.
Pip: Foreign tourists can get an Amazing Thailand Grand Sale passport. In the mega shopping malls, this entitles you to discounts of up to 2020% until January 70. Isn't that fantastic?
Int: Wait a minute. Up to 70% off, you say? But if customers get a 70% discount, they spend less, not more, right?
Piper: You're wrong. If they get a lot of discount, they buy more of the same stuff and also other stuff like souvenirs. So on balance they spend more. That is what two nephews who have just completed their BBA in Economics claim.
Int: Do the math with me. A tourist buys for 1000 Baht and with a 70% discount he now pays 300 Baht. If he now spends the same (not even as you would like) as before, 1000 Baht, he now has to spend roughly 3500 Baht with that 70% discount. Do you think the tourist does that?
Pip: Now you are acting very negative. I don't know if your calculation is correct, but I will have my son do the calculation. He is just now learning percentages in high school. And then I'll come back to it.
Int: Maybe you could ask your super-intelligent nephews if they can calculate how much profit the shopping malls will make if they give away 70% of the sales price. Or is it only about products that are of such poor quality or old that even the Chinese do not want to buy them? Otherwise, your proposal will make tourism flourish but destroy retail. More spending means layoffs and store closures.
Pip: yes, yes, yes…I will.
Int: Do you have any more interesting suggestions?
Pip: A few more, yes. One is under study. This proposal extends the opening hours of the catering industry in popular entertainment areas such as Sukhumvit and Khao San Road from 2 a.m. to 4 a.m. We are not going to do that for the entertainment areas of the Thai elite youth such as Ekkamai and Thong-Lor. They just have to drive home fast in their sports car at 2 o'clock and hopefully not drunk. We think that will lead to a significant increase in spending. Now the tourist has to go back to his hotel at 2 a.m. and all that remains is the minibar in his hotel room.
Int: I think you should send your daughter or son to the nightlife of Bangkok to see what happens at 2am. Or perhaps you can take a look yourself, alone, incognito.
Pip: I think the latter is an exciting idea, but I think my wife is not too happy about it. Normally once a month I go straight after work to the Pegasus, a gentlemen's club, with a few colleagues, but we always let ourselves be driven home at about 11 o'clock. But I have a question for you: what happens at night after 2 am in the city in your opinion?
Int: I think three things happen. A minority, already quite above the tea water, go to their hotel; another part goes to the so-called closed dance halls where the partying, drinking and flirting just continues behind closed doors. And another part drinks its last beer with the last female conquest on the street at the many mobile bars that do good business from 2 o'clock.
Pip: But don't the police act against these mobile bars?
Int: Not really; they even drink a (free) beer, get a tip from the tourists or their monthly tea money.
Pip: Who sang again: “when it comes to money, when it comes to women, when it comes to everything you love, who can you trust?” A pop group from your home country, isn't it?
Int: Indeed. That song was from Het Goede Doel. I'll send you the link. https://www.youtube.com/watch?v=v4dTYpn5LHw
Piper: Thank you. Nice name for a pop group by the way. I will play it in the Council of Ministers next meeting. Maybe it will give one of my colleagues the idea to learn Dutch. English is far too difficult for many people, according to research data. I'll be in touch.
The nephew must have also come up with the 70% discount: normal price 300 and then we put a sticker for the trivial customers that the “original” price was 1000 baht. Ha ha, the customer has no idea about prices and forgets everything as soon as he sees the saleswoman's smile. We cannot give a real discount in Thailand because we are number 1 in expensive products. And Chinese customers forget about Alibaba as soon as they cross the border and prefer to pay 300% more for Thai “quality” (made in China)
If the sale price is 300 Baht, the “original price” will be 1.500 Baht and the new sale price will be 450 Baht.
Yes, dear Ruud, in Thailand you call it “hak” (phonetically) when you take something off it. So from the price of 1000 you "choose" 70% discount and then you arrive at 300. The 300 is the selling price both before and after the fake discount offer. In the “fake discount round” 300 is the remaining 30% and 1000 is 100% and the discount then 70% of 1000 is 700.
Indeed, that discount is a very good idea 🙂
Try shopping in Thailand without encountering the SALE or DISCOUNT signs.
The minister forgets that foreigners are not at all interested in discounts. And that discounts of 70% are absolutely unbelievable, also for Thais. Asked my students last week if they would buy a laptop with a 70% discount and the answer was no. Doubt about the quality, whether it is new, maybe stolen.
Hahaha I also know that wisdom among the Thais. Above 40% a discount is suspected.
I don't like the whole system of such discounts. Sell at normal and fair prices and that show is over because everyone gets screwed and especially the wage slaves.
As an employer, I can earn from the risk I run, but I also act as a watchdog to ensure that a fair price is paid and it must be said that the export market can understand this, so there is hope for the future thanks to the young people who have had it with the suction.
Dear Chris De Boer,
Well written.
It remains a problem when you go shopping, especially with a lot of discount.
Still, it's a strange idea to me that a 'Farang!' Have to pay more just to
cheap Thailand, of course not! We are Dutch who have it in the gate,
“Much for little” or not.
It gets a little crazy in terms of prices, which is not for the elite.
It's time to let people speak.
Well written which is actually the truth, but 'shouldn't be said out loud'.
The nightlife has to close at 11 and for the elite open until 06:00 in the morning (555).
Yours faithfully,
Erwin
You could ask whether the sale of alcohol could be made more flexible. Many catering establishments and bars suffer from this. The tourists think it's crazy.