The company said local economic difficulties, including the rise in oil prices and higher interest rates, as well as political uncertainties, have seriously affected its business. Tanongchai Chongpiyawarang, deputy managing director, added that during this time of uncertainty the company would not make any new loans or increase its investment capital.

Setting up in Thailand almost five years ago, Saha Daiichikosho, a joint venture between Daiichikosho Co Ltd of Japan and the Saha Group, opened its first 40-room karaoke centre at Kian Gwan Building on Wireless Road. The second 42-room centre opened in May last year at the Asoke Tower on Asoke Road. The company had planned to open three Big Echo centres this year and up to five centres in Bangkok in 2007.

"Thai consumers have become more conscious about spending money and some of them perceive karaoke as an unnecessary luxury," said Tanongchai, adding that the frequency of visits to karaoke centres and the amount spent had fallen.

Tanongchai said on average that individual visits to its Big Echo karaoke centre had dropped from two times a month to only once per month or once in two months. Spending on each visit has also fallen from Bt400 each time to between Bt315 and Bt320.

"Even our corporate clients have cut their budgets to entertain clients and staff by almost 50 per cent. They previously used our karaoke service two to three times a week, but now only on Friday evenings," said Tanongchai.

He added the average occupancy at Big Echo centres has dropped from between 40-45 per cent last year to 30 per cent.

"Our [Big Echo] revenues in the first six months of this year are 15-20 per cent lower than the target. We are aiming for Bt60 million in total revenues for the whole of this year," said Tanongchai.

Tanongchai said the company projected better growth for next year along with a better political situation after the national election in October this year.

Toshikazu Imagi, managing director of Saha Daiichikosho Co Ltd, said there are potential locations in Bangkok, such as Pinklao and Lat Phrao, for Big Echo complexes in the future.

Tanongchai said almost 70 per cent of customers at Big Echo are office workers and this group of people has been worst affected by the current economic and political difficulties. These negative factors have affected their mood when it comes to entertainment and dining out, the executive said.

"Our strategy is to lure other groups of visitors such as teenagers to our karaoke complexes. We want teenage customers to make up 40 per cent of our business, up from 20 per cent. We will launch joint campaigns with educational institutes such as language schools to attract this group of young customers," said Tanongchai.

Big Echo yesterday launched the first Big Echo Thailand Singing Contest to celebrate its fifth anniversary. Customers are invited to sing Japanese karaoke songs for a chance to win a trip to Tokyo Disneyland. The application period runs from today until September 10 and the final-round contest will be held on September 24.

Kwanchai Rungfapaisarn

The Nation