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Land rental extended for Club Med Phuket

PHUKET: It has been confirmed that Phuket Provincial Administrative Organisation (PPAO, or OrBorJor) council members have agreed to extend the rental agreement on land it rents to Club Med (Holiday Villages Thailand Limited) for a further 15 years and at a cost of B45 million per year.

Thursday 27 September 2018, 04:35PM

Whether Club Med Phuket should be allowed to continue the land rental agreement goes to the vote. Photo: PR Dept

Whether Club Med Phuket should be allowed to continue the land rental agreement goes to the vote. Photo: PR Dept

Club Med (Holiday Villages Thailand Limited) have rented the land from the Phuket OrBorJor since 1985.

Phuket Council members agreed the extension of the land rental agreement, which expired on Sept 25, at a meeting held at the PPAO headquarters at 10am yesterday (Sept 26).

During the meeting some PPAO council members questioned Acting Chief of the Phuket OrBorJor Watcharin Patomwatthanapong why the meeting was being held after the contract had already expired on Sept 25.

To this, Mr Watcharin said, “This is due to the OrBorJor’s working process. The case had not been handed to the council for action because the file took time to work through.”

A legal official from the Phuket OrBorJor confirmed to The Phuket News today (Sept 27) that Club Med submitted the required documentation for the renewal to the OrBorJor in July 2018 and that the new contract will be active from Sept 25, 2018 until Sept 24, 2033.

The Phuket Provincial Benefit Board then discussed what they felt the rental price should be and a figure of B675,000,175 for a 15-year period was agreed.

Mr Watcharin confirmed, “This amount of of B675,000,175 will be over a 15-year period (B45mn a year). Half of this amount will go to Karon Municipality with the other half going to the Phuket Provincial Administrative Organisation.

QSI International School Phuket

“These funds will be used to develop and improve Phuket province by for 15 years,” he said.

PPAO Council Chairman Theera Jaisakul concluded, “According to the votes, 18 agree to the extended rental, zero disagree and five have opted not to vote.”

In August 2014, Club Med agreed to give up three rai of land it has occupied since 1985 in a deal that paved the way for it to renew its lease agreement with the Phuket OrBorJor.

Local people had lobbied for the land on which the resort stands to be returned to public use but then OrBorJor President Paiboon Upatising reached a deal on Aug 8, 2014, whereby Club Med would give up just three of the 39 Rai it leased from the OrBorJor in 1985.

Mr Paiboon said the lease with Club Med would expire in September 2015 and the resort is obliged to apply for a renewal of the lease at least six months before it expires.

He added that the lease for the 39 rai was set in 1985 at B3.7mn a year. Under the new three-year lease, Club Med will pay B27mn a year for the 36 rai it will continue to occupy. (See story here.)



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Kurt | 28 September 2018 - 12:25:42

Is that corruption charged Karon/Kata mayor ( some years ago) already procecuted? People forget fast here.  Is he still mayor?
Was he sitting among these Officials on the photo with their hands up?  Funds will be used for Phuket island development. Really? What about the 50% cashed by Karon/Kata? Where that money goes? Not to the salaries of orbor tor staff, is it?

Fascinated | 28 September 2018 - 11:03:07

"The case had not been handed to the council for action because the envelope took time to work through.”


Timothy | 28 September 2018 - 09:08:36

What happened to the billions of baht that was raked in by the Karon officials from renting out the beach? I remember the police even found a large map indicating areas, amounts, everything necessary for charges to be laid....I thought. Even hotels had to pay rent to use the beach. This money "disappeared" along with the investigation. I'm sure this Club Med money will disappear too....

bojon | 28 September 2018 - 03:57:25

This may sound very good deal, but on the other hand, what will that impact the economy of the hotel, especially to pay wages, which by the staff are far too low. Who will benefit from these monnies. Contractors with burmese workers, projects that serves the tourists or whom? Will be interesting to follow up on this story.

Nasa12 | 27 September 2018 - 17:51:43

Who wants money was asked at this meeting. And everyone can see who wants money.

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