The end of diving in Phuket?

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spog

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Thailand - and ain't it grand?
Okay, so the title is a little of an over-reaction, but still:

Dive industry facing tough new rules

PHUKET: -- Phuket’s Chief Administrative Officer (Palad) Nivit Aroonrat yesterday handed the Governor a proposal to issue an order that will require all dive businesses on the island to register with the government within 30 days.

Thereafter, the dive shops will have to provide specific details – including how many foreigners they employ and whether the foreign employees have work permits.

The proposal is based on recommendations by a committee, headed by Palad Nivit, which was set up amid allegations that many dive businesses run by foreigners on the island are evading tax.

Palad Nivit told the Gazette, “[If the Governor approves the proposal] every dive company will have to register at the Phuket Marine Office within 30 days [of the order being issued by the Governor].”

After the 30-day registration period has expired, the operation will move into its second stage, also of 30 days. During this period, operators who have registered must provide all the documentation demanded of them and apply for a permit to operate a dive business in Phuket.

“The permit will be issued by the Governor or by another senior government officer delegated by the Governor,” Palad Nivit said.

“Dive operators will have to declare all information about their businesses, such as the number of boats they have, how many dive trips they make a day, how payments for dive trips are received, the number of employees in the company, how many foreign employees they have and whether those foreign employees have work permits or not, and so on,” he added.

Phuket Marine Office Chief Surin Theerakulpisut said, “We are waiting for the Governor to sign the order before we will announce to the dive operators that they have 60 days to complete the [registration] proc ess.

“Dive operators will have to show us every bit of information about their businesses, including how they operate. For example, if companies have websites, they will have to inform us.

“They will also have to declare how they receive payments, and show us all their accounts. This way we will know how much revenue they receive, so that we can work out how much tax they should pay.”

K. Surin added that the Phuket dive industry is believed to generate about 3 billion baht in revenue a month. “The province has never received all the taxes that it should get from them, and these new rules will help us to collect taxes in full,” he said.

Several crucial points are unclear at this stage: precisely what information will be required; what penalties will be imposed on those who do not comply; whether dive operators will be allowed to continue working during the 60-day process; and how long it will take for permits to be issued.

-- Phuket Gazette 2006-06-16
 
ok ok.
Well, this might drive up the cost of diving in Phuket and maybe put a few of the dive shops out of business. But your title sounds much more scarier than what you actually wrote about.
 
Well, as I understand it, very few DM and instructors have work permits.

And if the authorities start to crack down on people with WPs, then there's going to be a shortage of staff to run the diving trips.
 
Well, I was going to post this as a thread. However I would've titled it something like "Impact of increased regulation on Phuket diving" or something to that effect. I just couldn't decide on the title :)

This isn't going to kill off the diving "industry" there, and it's unclear how much (if any) effect on the visiting divers it will have, IMO. Nothing really new, the trend has been to displace the foreigner divers with locals (which there are plenty of who are capable and will gladly work for less than farangs).

On the other hand, coupled with the recent "crackdown" on foreign land ownership via shell companies, it does suggest another trend.

I just don't see any sky falling down soon :)

http://www.phuketgazette.net/news/index.asp?id=5046
 
This is really not new to the dive industry on Phuket. We have had to adhere to these rules and regualtions for years. It seems to me that Khun Aroonat just wants to re enforce what we have to do anyway. On a positive note this is actually good for the dive industry on Phuket as there are so many one man fly by night "dive operations" opening up all around the island. These people work from home with promising websites, barely have any equipment, compressors, proper teaching facilities and materials etc. Apart from this these guys are known to pick up tourists on the beaches, in bars and restaurants etc and sell them diving courses and tours at outrageously discounted prices. Don't think that they pay the same taxes as a legit company?

Soley, commisson is what they rely on - no matter how much or in fact how little. Obviously with all of these ingredients there is little or no true customer service at all. Sadly as a whole this reflects badly on those in the industry on Phuket who are making strong efforts to maintain high standards.

Perhaps this re enforcement - if it goes ahead - will clean up the industry. I certainly hope so.
 
Sadly, Ringo these kinds that you talk about are the ones who are hardest to enforce. They have no office, no documents, no tax records etc..so they can't easily be found (unless we rat them out). What worries me is the focus on FOREIGN run dive businesses...so all the big Thai companies are just fine, then? Sounds more like anti foreign rhetoric to me. Off the top of my head, I think I paid about 50,000 Baht in personal income tax last year. Enough, you think?

Why they like to continually pick on the dive industry is beyond me. There are NOT enough Thai people qualified as Instructors, and companies are not allowed by law to get enough work permits to employ enough qualified foreigners, so you end up with people working with no work permit, because if they did not, the customers would have no instructor. I have hoped for years that some exception could be made in the dive industry with work permits. Every Thai instructor on the island is busy, that's for sure. And look what happened the last few years when free DM training was offered...most of the students did their free course and then went home to Bangkok. Any of those DM's working here as DM's? There are not enough Thai DM's and if one is looking for work they tend to get snapped up fast! I think many companies would like to have more local dive staff, but finding someone with the right qualifications is not easy.

If they want more tax money, suggest looking at the hundreds of little travel agents who deal mostly in cash...

They are right, the dive industry does make a lot of money and I tell you what, pays a lot of tax too. Just some people are suspicious about foreigners and are suspicious of things they don't understand (diving, dam nam).

Anyway, this is not law yet, just a "proposal".
 
I don't buy the idea that this is aimed at the fly-by-night operators. What I can guess is driving this is either
1) Aimed at pandering to locals that their government is doing something to make their lives better.
2) Fallout from tourism dropoff due to the tsunami.
3) Excessively high expectations of what diving is worth as an industry there.
4) Loss of the area / Similans as being one of the best ranked diving spots in the world.
5) Overcrowding of dive areas.
6) Diminishing stocks of larger sea critters - giant mantas, sharks - more likely IMO to poaching.

As Batfish posted, there's nothing new about this. Here's some prior articles along this thread's general subject:


Wednesday, March 8, 2006
Deadbeat dive operators under the microscope

http://www.phuketgazette.net/news/index.asp?fromsearch=yes&Id=4867


Tuesday, April 11, 2006
Rougher seas ahead for Phuket’s dive industry

http://www.phuketgazette.net/news/index.asp?fromsearch=yes&Id=4936


Monday, December 24, 2001
World-renowned reefs, fish destroyed by dynamite

http://www.phuketgazette.net/news/index.asp?fromsearch=yes&Id=1806


Friday, January 14, 2000
Phuket in drive to stop whale shark killings

http://www.phuketgazette.net/news/index.asp?fromsearch=yes&Id=704


Thursday, March 9, 2006
Park boss calls for help in curbing poaching

http://www.phuketgazette.net/news/index.asp?fromsearch=yes&Id=4869


Friday, March 17, 2000
Senator seeks halt to dive shop arrests

http://www.phuketgazette.net/news/index.asp?fromsearch=yes&Id=807
 
There is no denying that the Foreign owned Dive Operators are constantly being picked on...its been happening for years. My feeling is why worry if you are keeping or trying to keep legit? We all know that we are trying hard - not to mention that we are paying our taxes (much more than most) as well as providing employment to locals and putting money into the local economy (booking accommodation for customers, encouraging tourists via our websites etc etc etc)

Agree with Batfish - they need to target those travel agents. But we all know this will never happen. And then those awful tailor touts? Oh boy I can get started....!

Yes, the DOCT DM programme was a disapointment. But this was done at the very strong suggestion of the then Senator so there was really not much choice for the club members. Remember that most of the candidates came from some very wealthy positions (vets, interior designers, doctors) and returned to them after the freeby courses and diving. Nice holiday! Also it was amusing to see them purchase top of the range dive equipment and computers after completing the programme. I know of 1 candidate who is still working in the industry as a secretary.

And what about those websites outside of Thailand selling Liveaboard Charters where the money does not even come into the country? Heard yesterday that 2 Charters over peak Dec period have already been booked by 1 of these operators. Bet your bottom dollar - pun intended - that the taxman here does not see a baht of this money. If anything this sort of operation needs to be exposed. So hopefully this is 1 example of what the officials are trying to assess.

If and only if this happens - good luck to us all.
 
i think it's just more of the same old story, After 18years in the dive industry here, when i see something actually HAPPEN and then enforced , then I'll eat me fins! Promise.

Jamie
 
If there is any truth in the allegations i.e. "which was set up amid allegations that many dive businesses run by foreigners on the island are evading tax"

then the committee's recommendation is just what you would expect anywhere else in the world. If you read the article paragraph by paragraph theres nothing shocking in it, nor anything new (in regard to laws or legislation) except the special permit - but it does say "all dive businesses").

If it is taken up and administered equally and justly (guess I may have just shot myself in the foot there)
 
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