Sunbelt Asia Weekly Column
31 August 2018
Thailand stayed in the top ten most popular tourism destinations in 2017 according to a report from the UN World Tourism Organization. While Thailand slipped one spot to number 10 recording 35.4 million tourists, the country ranked fourth in tourism earnings, pulling in US$57.5 billion, the U.S. was first in amount of tourism spending with US$210 billion, followed by Spain at US$68 billion and France at US$60.7 billion. The Ministry of Tourism and Sports predicts Thailand will see 38 million tourists this year, having passed the halfway mark in the first six months of the year.
Thailand’s logistics business is predicted to see continued growth, especially with the rise of e-commerce according to the director-general of the International Trade Promotion Department which is predicted to hit 3 trillion baht in transactions this year. The logistics segment has seen 10-20 percent growth over the last several years in large part due to the rise in e-commerce with 2.8 trillion baht in transactions in 2017, a rise of 9.86% from a year before. The business-to-business (B2B) segment grew 8.63 percent to.67 trillion baht, and business-to-consumer (B2C) jumped 15.5 percent to 812 billion baht. On average Thais spend 3.41 more hours online than last year with those under the age of 37 spending over 10 hours a day online.
Thailand’s labor market remains tight as unemployment dropped to 1.1 percent in the second quarter compared to 1.2 percent for the same period last year. The workforce totaled 38.48 million in the second quarter, up 0.6% from 38.26 million in the same quarter last year. For 2017, the unemployment rate was 1.2 percent with an overall workforce of 38.1 million. Employment in the hotels and restaurants sector, in particular, rose by 5.7% in line with the continued growth in foreign tourist numbers, while unemployment among holders of bachelor’s degrees, particularly in the social sciences, remained high at 29.3 percent of the total amount of unemployed. The GDP grew 4.6 percent year on year in the second quarter while exports jumped 12.3 percent from the same period last year.
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Food importer, distributor, and wholesale business
This importer and distributor of wholesale foods was established in 1999 and provides high quality imported products for Thai retailers, wholesalers, and industrial users. The business is a direct importer and distributor of fresh produce and other unique food products from both local and overseas manufacturers and suppliers. The business also has four company-owned retail outlets located in wholesale markets.
The company has seen local gross sales average 360 million baht a year, export gross sales average 50 million baht a year and retail gross sales average 120 million baht a year with total gross revenue average 120 million baht a year.
The owner will assist the new owner for one month and would be willing to be on call for a mutually agreed upon extended period of time to introduce all customers, suppliers, and business prospects as well as provide all information and documentation. The owner is retiring and so is selling this profitable company, the new owner could see a return of investment in 4 to 5 years.
ASKING PRICE: 90 million baht
New restaurant in great Sukhumvit location
In a great Sukhumvit location, this restaurant offers Middle Eastern food and seafood in a new, fully equipped kitchen. The business opened last year and has seen sales reach 18 million with profits of 1.8 million baht. There are 16 full time staff with monthly wages of 400,000 baht. Rent on this 264sqm top location is 600,000 baht and the business has parking, a rarity in this part of Bangkok.
The new owner can take over the current concept or institute their own in this busy touristic location. The owner invested 18 million baht in setting up the restaurant but has too many other businesses that take up his time and so is selling this business.
ASKING PRICE: 14 million baht
Hair salon and nail spa on Wireless Road
Updated price! This long-established hair salon offers waxing and a nail spa for its clients in a top Wireless Road location. Wireless Road is often known as Embassy row due to the many embassies on the street but the street is also home to many office buildings and hotels. The salon has been in business for 12 years and has built up a great reputation and many repeat clients.
Rent on the 142 sqm space is 168,000 baht a month and there are 7 employees that earn about 200,000 baht per month in commissions. All of the staff are long-term, well trained technicians. Sales last year is 7,405,242 and net profit 1,628,301. The equipment and furniture are good quality and included in the sale.
ASKING PRICE: 3.5 million baht
Popular beachfront restaurant on Koh Phangan
Located on the popular island of Koh Phangan, this beachfront restaurant has main road access in the middle of the island between the two main ports and is surrounded by well-known and popular hotels and resorts. One of the most popular restaurants on the island, this business has a strong social media presence and even greater word of mouth through taxis , hotels and other businesses.
In high season and peak season reservations are booked at least two days in advance, with requests received up to 4 months prior for peak season. The staff are highly trained and willing to stay and the owners are willing to do a handover for at least a few months. Events are held at the beach bar such as live music and there is great growth potential for this. The new buyer will be earning a profit from day 1 an extremely profitable business with a strong identity and concept with even potential to franchise.
The property includes two staff rooms and a storage room as well as two restrooms, a car park, a point of sale system, all licenses including food and alcohol, and all equipment, furniture, and stock. The current owners have applied for a trademark on the name and logo and expect to include that in the sale. The business sees sales of around 17 million a year with a profit of 7 million. The landlord is a relative of the owners and is happy to extend the lease to the new owners.
ASKING PRICE: 20 million baht
Food manufacturer with distribution around the country
This well-known bottled foods factory was established in Chainat in 2006 and distributes to major grocery store chains in Bangkok and across the country. With a presence in every region around Thailand, this well-known food production business has new products on deck and offers huge growth potential for the energetic new owner.
There are four full time and four part-time employees with sales around 1.8 million a year and a profit of 600,000 baht a year. All licenses are included in the sale as well as distribution arrangements. The owner is selling due to personal reasons unrelated to the business.
ASKING PRICE: 5.5 million baht
Newly renovated Pattaya hotel
New asking price! Fully renovated this year for a new, modern look, the owner of this long-is moving to Bangkok and so has dropped the price for a fast sale. Located on Pattaya 2nd road, the hotel now has a up to date, modern kitchen, bar, and restaurant with classic decor. There is an outdoor dining space as well and the entire restaurant seats 50 people.
The hotel has 14 rooms over 4 floors, in a three unit shophouse. Rent on this large space is only 100,000 baht per month. The hotel has income from a tour company of 15,000 baht a month, reducing the total overall rent to 85,000 baht a month. The lease is set for 4 years plus 3. There are 6 staff with a total monthly payroll of 70,000 baht a month. Located right on the main road and with good lease terms, this is a deal.
The sale includes all new equipment and the fully renovated restaurant and bar as well as a Thai company with work permit.
ASKING PRICE 5 million baht
Restaurant on Soi Buakhao in Pattaya
This popular restaurant is in a top Soi Buakhao location in Pattaya and has recently expanded to double the floor space. The restaurant has been in business for over 4 years and in the past 12 months has seen gross sales reach 4.4 million baht with a net income of 770,000 baht. All furniture, fittings, fixtures, equipment, supplies, and current inventory are valued at 370,000 baht and are included in the sale. The recent expansion, which costs 300,000 baht, means the restaurant now seats 34 indoors and 12 outside. The building is set over 91.5 sqm and rent is a reasonable 22,500 baht. The lease is on a year by year renewal basis. There are six full time employees with a total monthly payroll of 45,000 baht.
ASKING PRICE: 3.9 million baht
Modern Pattaya hotel near Walking Street
Update!! The owner is also willing to offer this hotel for key money 1 million baht and rent 90,000 baht for a 3 year lease.
This modern hotel is very close to Walking Street in Pattaya and has a high occupancy rate and good reviews from guests. The hotel is almost always full and has attracted a strong Middle Eastern clientele.
There is a total of 18 rooms in the hotel, and there are a variety of rooms, all well equipped and roomy. The hotel also has a coffee shop for guests and outside customers.
The hotel has a good income each month, taking in 300,000 baht every month regularly. There are 4 staff with a total monthly payroll of 50,000 baht.
The owner is offering two options; lease the operation with key money of 3.5 million for 3+3 years and rent 100,000 baht per month or purchase the property for 25 million baht.
ASKING PRICE: 25 million baht or key money 1 million for 3 years lease and rent 90,000 baht