Bangkok Post Cover Story 90% of Beach Land Owned by Foreigners

The cover story in today's Bangkok Post which quotes a leading research body as saying Foreigner's own 90% of Phuket beach land certainly has struck an ugly cord of anti overseas ownership of land in the country. The study which was put together by the Thailand Research Fund quotes a professor from Sukhothai Thammathirat University who says these holdings are using Thai nominees.

Much of the current controversy stems from the recent reports of foreign parties looking to enter into the rice and farming business in the country, whereas Prime Minister Abhisit Vejjajiva recently told the media the existing Foreign Business Act explicitly forbid this and any violations would result in revoked land titles.

Viewing the Bangkok Post story it's disappointing to see such as one sided story hit page 1 which clearly is aimed at sensationalism. No facts or supporting documents have been presented, no investigations by the Post journalist's and no responsive comments from legal foreign land owners of beach front property. It clearly is a step backward to the days of the Foreign Business Act two years ago which plunged the property business into a serious flattening of demand.

Viewing the claims by the report, factually speaking there is little beach front land available in Phuket as a large portion of the areas have roadways constructed on it such as Patong or Karon. Go to Bangtao and Laguna Phuket has legal title to its large-scale land holdings though the Thai Government's Board of Investment scheme. Looking at Mai Khao Anantara and Marriott are owned by Thai listed firm Minor. Local owned hotels such as Kata Thani, Thavorn, Sri Panwa, and Sala have considerable areas. Even more material is the expansive Sirinath National Park which covers much of the west coastline of Phuket and has no land owning on it.

It's disappointing to see the Bangkok Post publish this type of tabloid sensationalism, and certainly it will only further hamper efforts to encourage foreign investment during the current recession and property downturn. If the reports are correct then the Post should publish evidence of the 90% of these nominee details rather then flame an issue which only damages the countries reputation amongst the investment community.

READERS - POST YOUR COMMENTS ON THIS STORY - Do you think foreign land ownership should be allowed in Thailand, share you opinions with us!

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Wrong information, simply. The BKK Post should correct it asap on the FIRST page, not in a 2 sq.cm box on page 13.

Hajo Von Keller, 24 Aug 2009 | 10:17 pm

It would be even more interesting to see who, in particular, is trying to circumvent the restrictions. And get their comments on what would happen if they couldn't! Nothing at all I suspect... Zero inward investment. Investigative journalism is supposed to name names and offer some supporting evidence - so let's see it. If not - let's have a few feel good stories to promote inward investment and put some tax dollars (baht) in the hands of local government to improve the quality of the domestic infrastructure/education/transport etc. etc. etc.

Bill Barnett responds:
Good Idea

Ben, 24 Aug 2009 | 9:48 pm

Great article Bill!

Sean, 24 Aug 2009 | 9:27 pm

There is a basic and grave misunderstanding of the foreigners about owning land here. Johnson & Johnson, Intel, Procter & Gambler, Toyota, Honda, Samsung etc., all these guys own big land in Thailand because they meet the criteria of the Thai government. The law of the land cannot be amended just for a few isolated cases. But if one chooses to take short cut, make shady deal, then take the risk. Dusit Hotel Group own/manage hotels in USA, Europe and Asia for decades. Thai Beverage is a new comer.

Sint, 24 Aug 2009 | 9:00 pm

Some items for the Bangkok Post editor and writers, and any of their more paranoid citizen readers to ponder:
1.TCC Land, the property arm of beverage tycoon Charoen Sirivadhanabhakdi, is moving to acquire a luxury hotel in Japan worth nearly US$100 million (Bt3.4 billion) after freezing all expansion plans early this year due to the economic situation…………
2..This is the second overseas deal this year after the purchase of a hotel in New Zealand worth nearly Bt1 billion early in the year," director Wallapa Trisorat said yesterday
Both By SOMLUCK SRIMALEE, THE NATION, Published on August 21, 2009
3. Date: 9th July 2009 Publication: news wires everywhere : International Beverage, a subsidiary of Thai Beverage, has brought its Speyburn and Old Pulteney Scotch whisky brands in-house in the US in a bid to strengthen its image in the country…...
International Beverage US will take the reins of the Scotland-based Inver House Distillers portfolio with effect from 1 August, the company said this week.
4. TCC Land Co acquires third hotel in Australia. Date: 6th March 2009 Publication: Bangkok Post TCC Land Co has acquired its third hotel in Australia, according to Mark Durran, an executive vice-president for Jones Lang LaSalle Hotels. TCC Land acquired the 249-room Hyatt Hotel Canberra in December at AS80 million, according to JLL Hotels.
5. Tall measure for Thai Beverage - Foreign markets to become new target Date: 18th May 2006 Publication: Bangkok Post Thai Beverage Plc (ThaiBev), Thailand's biggest alcohol producer, is looking for foreign markets to expand in the hope of overtaking the Philippines' San Miguel as the market leader in Southeast Asia.
6. By Sonia Kolesnikov-Jessop, Published: Tuesday, August 7, 2007
In the past year, the InterContinental Hotel building in Singapore was sold for $159 million to TCC Holdings, with InterContinental retaining management for 10 years
7.Published in the Bob Dey Property Report (and the BKK Post) Published 10 March 2009
TCC Land Ltd has followed up its Christmas Eve purchase of the Hyatt Hotel Canberra by buying the Hyatt Regency Adelaide, both from Grand Hotel Group and both deals negotiated by Jones Lang LaSalle Hotels.

TCC Land is a member of Thailand conglomerate TCC Group, headed by liquor tycoon Charoen Sirivadhanabhakdi.

TCC bought the 5-star Canberra hotel for $A80 million. It sits in 3ha of landscaped gardens overlooking Lake Burley Griffin and has 249 guest rooms, 2 main food & beverage outlets, 2 ballrooms & 4 meeting rooms, a floodlit tennis court, indoor heated pool and parking for about 348 cars.

The 5-star Adelaide hotel cost TCC $A155 million. It forms an integral part of Adelaide’s Riverbank Promenade and is next to the Adelaide Convention Centre, Adelaide Casino & Adelaide Festival Centre. It has 367 guest rooms & suites, 2 main restaurants, lounge bar, extensive conference space & a range of recreational facilities.
And on and on, and this is just one Thai investor to whom the idea of foreign investment is neither foreign nor unwelcome.
Should the Thais be as critical of foreign investment interest, or their Press as sensationalist in their writing, as not to question both the relevance and the damage caused by this type of blatant jingoism and pandering to the worse of instincts?
Do you see Australian, Japanese, English and New Zealand financial institutions, press, their publics or even their own investors agitating against this active Thai foreign investment elsewhere?
Anyone notice the anomalies here?

Bill Barnett responds:
interesting facts thanks for that

KevinM, 24 Aug 2009 | 7:00 pm

Some things never change. Much bigger damage to Thailand is done by corrupt practises and foul play together with bad service. Getting ripped off and cheated does stick in Tourists minds and is discussed everywhere. Best just transfer our money but don't show up at all.

Wolfgang Jobst, 24 Aug 2009 | 6:52 pm

Thai law do not allow foreigners to own land, beach, city, farm or in any form. But properties acquired and built properly by foreigners through approval of BOI and corporation registration need not worry. Shady deals with Land Department officials privately or through Thai citizens as nominees always have to fear. Confiscation is real, just when!

Sint, 24 Aug 2009 | 6:41 pm

They should at least allow foreigners who pay personal Thai Tax a right to own land in Thailand.

Hava A Say, 24 Aug 2009 | 4:59 pm

A disappointing story indeed. Sensationlism aside, the sensitivities remain and the legal framework remains unchanged. The latter is the important point to stress to all potential investors/real estate buyers.
In terms of full freehold ownership, I don't think foreign land ownership should be allowed.
A sincere debate with the powers that be about lengthening leases would be worthwhile. Where to start? A united front/association of sorts would be the starting point. Without such, he govt. will not listen to a group of loosely united businesses no matter what their nationality or industry.
It took the marine industry a very long time to effect tax changes. The real estate industry has to start at some point and now is as good-a-time as any...

Duncan, 24 Aug 2009 | 4:54 pm

It would also be nice if the Bangkok Post and The Nation would FOLLOW-UP on stories. They always announce things with a lot of noise, but most is never followed up and 'disappears' not unlike George Orwell's vision of what our life and times would like.

Ian, 24 Aug 2009 | 4:41 pm

Fully agree!
What a disappointing article written by one of the leading newspapers here in Thailand. As you said Bill, no facts, no supporting documents, just a journalist who does write something stupid to make it to the cover page and move into the limelight! The editor of Bangkok Post should never have allowed to print a damaging article like this!
Bangkok post reporters should better follow up, investigate and report on unsolved crimes and serious social problems here in Thailand! Shame on you Bangkok Post!

Klaus R. Rauter, 24 Aug 2009 | 3:12 pm