Govt will have to foot Elite card refund

The prestigious card programme is under fire.

"Certainly, the amount would have to come from the government, as the company does not have the financial ability to manage the refunds," said Suraphong Triumchanchai, chairman and acting president of TPC.

Minister of Tourism and Sports Chumpol Silapa-archa said he was studying whether TPC should continue the business. He said if the company was closed, it would need to refund the membership fees at their left-over value.

TPC has informed its 2,500 members worldwide about the government's plan to end the privilege programme extended to wealthy foreigners.

"All members have been informed of the company's status as well as the future of the operation, which is being studied," Suraphong said.

Prime Minister Abhisit Vejjajiva on Wednesday ordered the Tourism and Sports Ministry to study the possibility of shutting down operations due to losses of more than Bt1 billion. The study is to be completed in two weeks.

Suraphong said that members' benefits would continue until the programme was terminated.

A Japanese member who is working in Bangkok said he would accept a refund if TPC decided to close the operation. However, he was not sure how other members would react to the issue.

The member said the TPC was promoted by the government, offering a lot of benefits. Many millionaires decided to join the programme, as they were encouraged to do so by Thai ambassadors all over the world.

"If the government ended the programme without any compensation, I think many members would file a lawsuit against the Thai government," the member said.

The member also said that unlimited use of spa and services was the reason for the losses. Some members are allowed to bring along their spouses for the services while many take advantage of the high-value annual medical check-ups.

Moreover, the members also enjoy free golfing, with TPC subsidising up to Bt1 million per member per year.

Two weeks ago, Thailand Elite members across the world received an e-mail informing them of the cancellation of the privileges. The move led to suspicion that the company would soon close its business.

The members were also informed that they would also lose their privileged status and they would be required to apply for visas as normal individuals as well as follow general regulations.

However, TPC denied sending that mail.

Last year, TPC started offering a lower membership fee of Bt2 million to boost sales, down from the original Bt3 million. TPC hoped to increase its membership this year from 2,500 to 2,900.

The company was set up five years ago by former prime minister Thaksin Shinawatra. However, it was criticised for a lack of transparency in its internal management since opening.