bangkokpost.com, 23-10-2006
Samui _ The real estate industry on the resort island of Koh Samui could receive a major boost if a plan to offer foreign buyers perpetual leases materialises.
The Vacation Investment Programme (VIP) is being offered by Thailand Longstay Management (TLM), a company set up by the Tourism Authority of Thailand (TAT) to promote long-stay tourism.
The TAT holds 30% of the shares in TLM, small shareholders including tourism business associations hold 15%, and the remaining 55% is held by Pol Col Ruamnakorn Tubtimthongchai, the company's chief executive officer.
TLM says that VIP will instill confidence in the real estate profession, which has come under heavy scrutiny on Samui, by granting licences to developers who pass certain criteria. Only these licensed firms will be allowed to use VIP services.
While foreigners can buy leasehold property in Thailand, leases are for 30 years only. They can be extended only after the 30-year term is complete but this is not always guaranteed. Under VIP, 30-year renewals would be available in perpetuity.
Chaiyakarn Sudampanthorn, managing director of Samui Estate Corporation, says that VIP could help reverse some of the damage caused by the "economic tsunami" that battered the resort island for the past three to four months.
VIP would also shore up foreigners' confidence in buying and leasing property in Thailand, especially after waves of negative publicity.
Foreign individuals and businesses have been on edge because of continuing questions about the use of nominees in establishing businesses, and policies toward foreign investment following last month's coup. Of particular concern in Samui has been a land scandal involving the marketing of many plots for which the title was questionable at best and downright illegal in some cases.
