The Lost Paradise, Koh Chang
Invasion - June 3, 2005
Tourism-related businesses and land speculation are booming on this eastern
coastal resort island, fuelled by the government's plan to develop it and
satellite islands into a tourism hub.
Drastic changes have taken place since 2003 when the first
Thaksin Shinawatra
government formed a special public organisation to develop Koh Chang into a
world-class destination for nature lovers, Koh Mak for diving and other
water sports, and Koh Kut for exclusive tourism.
Both local and international tourists are flocking to Koh Chang, which now
boasts five luxury hotels - the Amari, Sima Thani, Tropicana, Aiyapura, and
Barali - each of which is worth over 500 million baht. The island is also
peppered with boutique hotels with 10-20 rooms each.
Old hotels and bungalows have changed hands to new investors with more
money, some of whom came from the South after the Dec 26 tsunami disaster.
Vast tracts of land have been acquired by many national-level politicians
and associates. A number of beachside plots have changed ownership several
times before falling into the hands of major investors, both Thai and
foreign.
As a result, local land prices skyrocketed from five million baht to 10-15
million baht per rai for beachfront land. Encroachment on public land became
rampant with the aid of fake land documents.
Tourism-related businesses are mushrooming, causing the cost of living to
soar. They range from tour guide, diving, massage, spa and transport
services to beer bars.
Local operators accounted for 30% of businesses on Koh Chang and
neighbouring islands, national-level investors 65% and foreign investors
nearly 5%, said Sakol Sunet, adviser to the Tourism Business Association of
Trat. One of the local tourism business pioneers, Mr Sakol now owns Ban Pu
Resort, Ban Pu Ko Chang, Boutique Resort, and shopping plazas on Koh Chang.
"There were 1,000 rooms in 2001 but now there are nearly 4,000 rooms, with
the highest room rate reaching 30,000 baht per night. There are three ports
for ferries which can serve 2,500 vehicles a day," he said. According to Mr
Sakol, Koh Chang now receives more than 500,000 visitors annually, up from
over 200,000 a few years ago. And the number is rising.
Koh Chang can accommodate up to 10,000 visitors at a time during high
season. Visitors stay 1-7 days on average and spend about 500 baht each per
day.
The island is a stopover for three luxury cruise ships and has a private
airport serving two regular flights a day. Koh Chang generates an annual
income of up to 1.5 billion baht for Trat province. A number of immigrant
workers have flocked to the island, adding to the local population which
once stood below 5,000.
Mr Sakol said Koh Chang and its satellite islands have proved to be a
treasure trove for investors because of their unspoiled nature, proximity to
the capital city and other tourist attractions such as Pattaya in Chon Buri
and Cambodia. Also, the islands are located in an area less prone to natural
disasters, which permits virtually all-year-round tourism.
There are now under construction on Koh Chang a world-class resort for the
elderly, an international school and a marina. Also, a number of small
bungalows are undergoing renovation that will turn them into boutique
hotels.
Land clearance and construction on coastal plots proceeded apace in the past
year, especially during the low season, said Dejsak Pucharoenyos, manager of
Remark Cottage, a boutique resort with 12 rooms on Koh Chang.
"Dust is covering Koh Chang. Eight or 10 earth-carrying trucks pass
every five minutes,
giving off black fumes and raising clouds of dust all over the area, in
order to complete construction in time for the next high tourism season," Mr
Dejsak said.
Having been declared a special tourism zone, Koh Chang and 52 neighbouring
islands are experiencing intense land speculation. Whole islands have been
bought by major investors including the
Charoen Pokphand Group,
Keeree Kanchanapas
and several
government politicians.
"Land on Koh Kut is still priced at 2-4 million baht per rai only, so both
Thais and foreigners are turning to the island. Many locals have sold their
land and moved closer to the hills further from the sea," said Kanok Jairak,
a member of the tambon administration organisation of Wang Krajae, Trat. He
is developing a resort on a 60-rai land plot on Koh Kut.
A
cabinet minister
has paid nearly 300 million baht for land on Koh Kut and a
woman politician
in the government is seeking to buy 100 rai on the same island, according to
Vichit Kraithong, kamnan of tambon Koh Kut.
The local leader said two business groups from the Maldives, one of which is
the Amazon group, have bought land near Salak Uan bay for over 250 million
baht from a
key government politician.
An entertainment tycoon is acquiring more than 100 million rai near Salad
bay and a senior official of the
Port Authority of Thailand
has leased 600 rai from the Treasury Department for commercial development.
Smaller businessmen are also buying plots from landholders with only local
development tax receipts to prove occupation rights. Undocumented land on
Koh Kut is priced at hundreds of thousands of baht per rai.
Land on smaller islands nearby has been occupied and changed hands
repeatedly as well.
The influx of big-time investors has proved too strong for local operators
to cope with. Bowing to the outsiders with clout and money, many agreed to
sell their land and businesses when the offers were high enough, he said.
Mr Dejsak, who has gained experiences in tourism business from the South,
said Koh Chang had very high tourism potential because of its natural
abundance. He urged the authorities to promote environment-friendly resorts
on the island and
screen out Pattaya-styled entertainment
venues.
As investments are storming into Koh Chang without being regulated,
many parties
call on the authorities to implement zones for development. They want to see
controlled entertainment zones and protected zones for nature lovers.
Mr Sakol, a former president of the Tourism Business Association of Trat,
said the absence of clear regulations has allowed over-exploitation of Koh
Chang's natural beauty. The island needs not only development but also
rehabilitation, he said.
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