Expatriates will be charged 2 million Baht (US$ 51,300) next year to obtain a Thailand Elite privilege card – double the present price – because expatriates living in Thailand can avail the free services and facilities more often than members who are foreign tourists or visiting businessmen.
Thailand 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 1 million Baht to build customer interest for the Thailand Elite Card, Paisit Kaenchan, director of the Thailand Privilege Card Company, 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 only 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 from the sale of the cards is sufficient to cover the 40,000 Baht 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 the next 2 years from the current Bt1 million, as facilities and services for card holders would be improved and added, he said.
The Thailand Elite card, the brainchild of Prime Minister Thaksin Shinawatra, targets one million members in within the next 5 years. However, since its launch on 19 November 2003, 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 Elite 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 Asian countries and expand the sales network from 20 agents at present to 30-40 firms.
Recently, the Elite Card Company forged an alliance with Unicef, hoping to attract Hollywood celebrities and top executives from all over the world to become Elite Card 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 program, 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 the Elite 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 on the bought property, such as to develop home or condominium projects. The first approval of property purchases by a Card holder is expected in January, Paisit further added.
The Thailand Privilege Card Co will 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 Thai Government in the future would dare to close us. If anyone tries that, he'll get sued by cardholders all over the world.
