Survivors in Thailand Looking to the Future

“If you are still in business at the end of 2009 you should feel proud,” stated the owners of the Emerald Green Men’s Club in Koh Samui.  “We prepared in 2008 and entered 2009 feeling optimistic thinking, ‘you can’t let a good crisis go by,’ it was an opportunity,” Bruce went on to say. How did they rise to the challenge?  They looked closely at their business, cut costs, and were determined to remain creative.  They invested money in strategic marketing and staff training, along with upgrading facilities.  They did not discount services but rather added value with free coffee, foot scrubs, extra massage time, and worked diligently to improve their high standards of customer service. The results from strategic planning yielded a 21% increase in business over the previous year. We have taken on extra staff, plan more expansion and will continue to add value, and feel extremely optimistic about the resilience of our niche, while noting it has become price sensitive,” Bruce added.

Adam from Rainbow Scuba and Tour also in Koh Samui explained, “I would say that if we have stability in the world financial markets and political stability in Thailand, tourism in 2010 will recover to 2008 levels.  Overall, I am optimistic about the prospects for tourism to Thailand in 2010.”

In the north, at the Lotus Hotel & Garden Bar the owner explained, “The tourism industry in Chiang Mai is going through a period of adjustment. After a substantial growth period, there is going to be a period of stability until it finds its equilibrium again and new growth will follow.  As much as it might be a difficult period, it is a period for potential reflections and creativity that will eventually bring new ideas.” He suggests controlling expenditures while maintaining quality standards and being open to creative new options.

With relief at the Tarntawan Place hotel in Bangkok, they shared, “Bookings are coming in and it looks like we have gotten over the worst crisis in 17 years without too much damage.
Depending upon the political situation, the outlook for 2010 looks okay—not as great as last year, but better than this year.”

“Business is already starting to pick up versus the prior several months,” explained Jim Elder of @Richards Pub in Bangkok. 
“More tourists are out and about on Silom and at @Richard’s Pub.  Hopefully it will continue to grow,” he said.

 As for incentives, @Richards Pub now has two nightly happy hours for early and late crowds, and for the season have commenced their weekly theme buffets at only 300 baht with VIP member discount on top of that.  In addition, VIP members have their own appreciation night.

Stuart with the Balcony Pub & Restaurant on Silom Soi 4 explained, “Notwithstanding the economic downturn, we believe that the coming high season will see the usual influx of tourists in similar numbers to previous years.  Foreign tourists may have foregone their 2009 summer holidays and stayed in their own countries in order to save money but now, coming out of recessions, they will be more determined to take a break from work.”

Even with his optimism, Stuart added about the predicted tourists, “They will not be spending as freely as before and they will be looking for good value in hotels, bars and restaurants.  With this in mind, we have made prudent stock purchases so that we can pass on savings to our customers.  Special offers and maintaining current low prices will be our aim through the high season.”
A challenge to all bar owners, Stuart explained, “Premium drink manufacturers are already raising their wholesale prices…” 

The fixed costs are also rising according to Stuart, including rents, salaries, and electricity for air conditioning.  Some of the costs may have to be passed on to customers.  
Realistically, Stuart concluded, “We are optimistic for next year but we think that the Thailand gay scene will change significantly over the next few years.  Go-go bars, host bars and massage parlors will significantly reduce in number as costs become prohibitively high and more people will find ‘on-line dating’ more convenient and cheaper.”

In Pattaya, the folks at Sunee Plaza info expressed, “There is little doubt that the upcoming high season is going to be tough.  The low season has been the quietest most people can remember and the signs are the high season will follow this trend…” and they have been working hard to upgrade the entire area.  “Sunee Plaza is changing.  It’s a friendly, welcoming place with many nationalities represented among the bar owners.  The whole area is vibrant, alive and looking forward to welcoming folks this holiday period adding they have a host of special offers and discounts.

Manager Daniel See from Club One Seven in Phuket shared they have bookings through 2010 and been their all-new property already has transformed and upgraded, with more improvements in process, “Our boys are working really hard right now to make sure that all these upgrades will be completed in time for high season.” 

The management at the new Lavender Lanna in Chiang Mai said his refurbishments of the 110 room hotel are 90% complete. The Powerboys Gay Night Club & Go Go lounge is open as well as the 24 hour restaurant. The Lavender Sky upscale rooftop dining room with a great view will open soon. So they are very happy as bookings have been stronger than expected and look forward to a good season.. He feels the economy is better, Airports open & political situation more stable than before. So very happy with things and anticipates a good high season and into year 2010 ahead.

Todd who recently re-opened the Adam’s Apple above the Metro Bar in Chiang Mai wanted to bring class to the Gay community. He was hesitating if he should open Adam’s Apple but the Gay community stated it was an icon there for over 20 years and begged him to do it, so he completely refurbished the building and opened to a packed house. He is very upbeat on the coming season.

As for the future, well the guys at Emerald Green Men’s Club put it quite well.  “Although the next year will be tough globally, we look forward to 2010 armed with the skill 2009 gave us, knowing how to live creatively with fear.”