Transcript Document

High Value-added Services
Ranked 8th of top 25 countries for tourism
Ranked 1st for Expat Experience
Excellent location for Regional Operating HQ
Member Association of Film Commissioners International
(AFCI)
As of Apr 27, 2015
Services Industry
• Services account for about 50% of
GDP
• Many opportunities exist in this
growing sector:
•
•
•
•
•
•
Long-stay tourism facilities
Film & Entertainment
Regional Operating Headquarters
Distribution Centers
Logistics
Aircraft repair
Services Industry
Many opportunities exist in this growing sector:
• R&D and design
• Printing
• Tourism facilities, esp. long-stay
• Film & Entertainment
• Regional Operating Headquarters
• Distribution Centers
• Aircraft maintenance
Logistics:
• Shipping services strongly supported by the Thai
Government to support our strong growth in
international trade
Business Travel Spending and Forecast: Thailand
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
-
Unit: US$ Million
5 Year Projected
Growth: 28.57%
Source: Global Business Travel Association as of July 2013
9,301
8,756
8,202
7,625
7,234
Thailand’s MICE Industry Outlook,
2012-2016
Indicator
2012
2013
2014
2015
2016
MICE visitors
750,000
792,000
871,000
958,320
1,054,152
MICE receipts
(Million baht)
60,120
63,920
70,933
78,717
87,354
Spending per
head per trip
(Baht)
80,160
80,707
81,420
82,140
82,866
MICE: Meeting Incentive Convention and Exhibition
Source: TCEB Corporate Strategic Planning Division, Feb 1, 2012
Printing
Activity-based Incentives
A2: Activities in infrastructure for the country’s
development, activities using advanced
technology to create value added, with none or
very few existing
investments in Thailand
(8-year CIT exemption, exemption
of import duty on machinery/raw
materials and non-tax incentives)
A4: Activities with lower
technology than A1-A3 but
add value to domestic
resources and strengthen
supply chain
(3-year CIT exemption,
exemption of import duty on
machinery/raw materials and
non-tax incentives)
A1
A2
A3
A4
A1: Knowledge-based activities, focusing on
R&D and design to enhance the country’s
competitiveness (8-year CIT exemption without
cap, exemption of import duty on machinery/raw
materials and non-tax incentives)
A3: High technology activities which are
important to the country’s development,
with a few investments already existing in
Thailand (5-year CIT exemption,
exemption of import duty on
machinery/raw materials and
non-tax incentives)
B1
B2
B1/B2: Supporting industries that do not use high technology but are still important to value chain
(B1 : Exemption of import duty on machinery/raw materials and non-tax incentives
B2 : Exemption of import duty on raw materials and non-tax incentives)
BOI Policy to Promote Printing Industry
(1/2)
Incentives:
3.1.3 Bleaching, dyeing and finishing or printing and finishing
or printing
1. Projects must be located or expand in industrial estates or
promoted industrial zones that have waste treatment and
environmental protection and control systems according to the
announcement of the Ministry of Industry.
2. Environment-friendly technology must be used.
**A3 incentives offered.**
BOI Policy to Promote Printing Industry
(2/2)
6.14 Production of printed matter
– 6.14.1 Production of digital printed matter, A3
incentives offered
– 6.14.2 Production of printed Matter, B1 incentives
offered
Film
Priority Activity: Film & Animation
Incentives: (A3)
7.9.1.4 Industrial zone for motion picture
production (Movie Town)
Must provide the following facilities:
1. Indoor studio and outdoor studio
2. Post production services, i.e. film
developing and duplicating, special
effects, computer animation, sound
lab
Film
7.20 Thai motion picture production (A3)
1. Thai motion picture production shall include production of
movies, documentaries or television programs, but do not
include production of an advertisement.
2. Revenue exempt from tax shall include
• 2.1 Revenue obtained from the sale of copyright,
including sale of motion pictures in other forms such as
CD, video CD, DVD, etc.
• 2.2 Revenue obtained from a revenue sharing scheme
from movie theaters and motion picture distributor.
Film (1/2)
7.21 Motion picture supporting services (A3)
Motion picture supporting services shall include documentaries, television
programs, animations and commercials, which have a scope of business as
follows:
1. Rental services of movie production equipment and/or movie production
props must have main equipment machinery, such as camera, grip equipment,
light set etc.
2. Film development and duplication services must have main
equipment/machinery, such as film development machine, film duplication
machine, digital film duplication machine, etc.
3. Sound recording services must have main equipment / machinery, such as
digital sound recorder, digital sound A345 Activities Conditions Incentives
editing machine, digital sound mixing machine, etc.
4. Contd.
Cont’d 2/2
Picture technical services must have machines and equipment capable of
creating special pictures that are not possible with cameras. The service
providers must have main equipment and machinery, such as standard
definition/high definition digital recorders, editing suites, digital compositing
and special effect creation, etc.
5. Coordination services for foreign movie production in Thailand must
include coordinating with related government agencies for permits, location
scouting and sourcing of staff and movie equipment.
6. Studio rental services for movie and television program production.
Thailand’s Foreign Film Production, 2005 – 2014
2005
2006
245
188
183
201
16
37
27
39
21
26
492
491
Revenue
(Million
Baht)
1,138.36
1,926.83
2007
229
198
32
42
22
523
1,072.62
2008
197
184
48
69
28
526
2,023.24
2009
181
166
52
60
37
496
897.83
2010
178
255
46
50
49
578
1,869.15
2011
155
296
86
34
35
606
1,226.45
2012
122
314
106
41
53
636
1,781.93
2013
150
346
107
47
67
717
2,173.35
2014
159
294
86
44
48
631
1,934.82
Year
Documentary Advertising
TV
Series
Music
Video
Feature
Film
Total
Source: Thailand Film Office, as of Mar 12, 2015
Thailand’s Foreign Film Production and Revenue,
2000 – 2014
No. of Production
800
Bt Million
2,500
No. of Production
Revenue (Bt Million)
700
1,927
600
500
400
492 491
481
1,401
441
441
1,277
1,224
402
388 1,1281,138
2,023
523 526
496
1,226
1,500
1,073
898
300
200
717
2,173
1,935
631
1,869 606 636
2,000
1,782
578
450
1,000
500
100
0
0
Source: Thailand Film Office, as of Mar 12, 2015
Thailand’s Advantages
High capability in producing media entertainment of
all kinds such as pre-production, Production, as well
as Post production
Lower labor costs
Lower rental fee for location
One of AFCI members
The Association of Film Commissioners International
(AFCI) is the official professional organization for film
commissioners who assist film, television and video
production throughout the world.
Tourism
Amazing Thailand
Top 25 Destinations in The World
Bangkok
ranked 18th
for World’s
Top 25
Destinations
“Golden palaces, floating markets,
majestic porcelain-laid spires…you've
never seen a capital city quite like
Bangkok, a Travelers' Choice
Destination for 2015”
Source: 2015 Traveler's Choice (http://www.tripadvisor.com/TravelersChoice-Destinations-cTop-g) as of April 27, 2015
Expat Explorer 2014
Expat
Explorer
Overall
Expat
Economics
Expat
Experience
Raising
Children
Abroad
Switzerland
1
2
5
10
Singapore
China
German
Bahrain
2
3
4
5
3
1
7
11
3
26
10
2
5
12
3
9
New Zealand
6
22
1
1
Thailand
Taiwan
India
Hongkong
7
8
9
10
13
9
12
6
6
7
20
17
14
18
6
22
Country
Source: Expat Explorer Survey 2014, HSBC as of Dec 25, 2014 (9,300 respondents)
Thailand Visitors Arrivals: Total 2.65 Million in 2015 (Jan)
Visitors
1,545,683
727,462
122,714
East Asia Europe Americas
109,440
South
Asia
81,965
Oceania
55,521
Middle
East
Source: Department of Tourism as of April 28, 2015
11,849
Africa
Thailand Visitors Arrivals between 2013-2015
3,000,000
2,500,000
2013
2014
2,000,000
2015
1,500,000
1,000,000
Jan Feb Mar Source:
Apr May
Jun Jul Aug Sep Oct Nov Dec
Department of Tourism as of Nov 7, 2014
Comparison of Thailand Visitors Arrivals Between
2014 (Jan) and 2015 (Jan)
1,000,000
Tourists in 2014 (Jan) = 2,282,568
Tourists in 2015 (Jan) = 2,654,634 (16.30%)
78,806
89,890
85,771
85,416
81,552
82,036
70,072
81,716
78,488
72,904
China Malaysia Russia
115,643
121,926
0
135,598
153,311
200,000
269,479
145,605
400,000
145,150
279,517
560,399
600,000
357,034
No. of Tourist
800,000
Korea
Japan
Laos
United
Kingdom
USA
India
Australia
Source: Department of Tourism as of Apr 28, 2015
Thailand: The Best Cities for Tourist
Thailand is fifth in
The World’s Best
Honeymoon
Destinations for
2014
Bangkok, Thailand
is won the "World's
Best City Award
2013" organized by
Travel and Leisure
magazine for the
fourth consecutive
year.
Four Thai Cities
Ranked Top 100
City Destinations by
Euromonitor
International:
Bangkok, Phuket,
Pattaya, Chiang Mai
Source: http://www.tatnews.org as of Mar 21, 2014
Temples in Thailand were awarded for 2011 UNESCO ASIA-PACIFIC
HERITAGE AWARDS FOR CULTURE HERITAGE CONSERVATION
Awards of Merit:
Scriptures Hall of Wat Thepthidaram Worawihan in
Bangkok, Thailand
Honorable Mention:
Na Phra Lan Historic Shop houses, Bangkok, Thailand
Honorable Mention:
Salarian Pavilion of Wat Kutao, Songkhla, Thailand
Source: 2011 UNESCO Asia-Pacific Heritage Award Winners, as of Sept 29, 2011
Tourism in Thailand, 1997-2014
1,500
1,172
1,148
24
984
18
27
22
500
16
14
15
14
14
12
384 367
12
10
11
10
10
9
8
221 242 253
285 299 323 309
19
482
548 575 510 593
25
774
12
6
Billion Baht
1,000
7
No. of Tourist (Million)
30
0
0
7 998 999 000 001 002 003 004 005 006 007 008 009 010 011 012 013 014
9
9
1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Source: Department of Tourism as of Jan 19, 2015
Thailand Visitors Arrivals and Revenue between 2007 and
2014
Year
Number of
Visitors
% Change
Revenue from
Tourists
(Million Baht)
% Change
2007
14,464,228
+4.65
547,781.81
+13.57
2008
14,584,220
+0.83
574,520.52
+4.88
2009
14,149,841
-2.98
510,255.05
-11.19
2010
15,936,400
+12.63
592,794.09
+16.18
2011
19,230,470
+20.67
776,217.20
+30.94
2012
22,353,903
+16.24
983,928.36
+26.76
2013
26,546,725
+18.76
1,171,651.42
+19.08
2014
24,779,769
-6.66
1,147,653.49
-4.93
Source: Department of Tourism as of Jan 19, 2015
Source: MasterCard Global Destination Cities Index 2014 as of July 18, 2014
Market Overview
Thailand lies in the heart of Southeast Asia.
The country’s scenery is highly diverse, ranging
from mountains in the north to beaches and islands
along the eastern seaboard and throughout the
south.
Tourism has attracted over 19 million international
tourists resulting in revenues of Bt774 billion.
7.22 Tourism promotion services
•
•
•
•
•
•
•
Ferry/tour boat services/renting
Amusement parks
Cultural centers
Aquariums
Racing tracks
Open zoos
Cable cars
B1
A3
A3
A3
A3
A3
A3
World Class Marinas
 Phuket Boat Lagoon
 Royal Phuket Marina
 Yacht Haven
presently providing berthing for 160 vessels, soon
to increase to 220 boats of up to 70 metres length
 Ocean Marina
capacity to handle over 500 yachts in the water and
200 yachts – from 18-150 feet – in the dry stack.
 Paradise Bay Marina, Phuket
 Koh Chang
7.23 Activities to support tourism:
7.23.1
7.23.2
7.23.3
7.23.4
Hotels
A4 or B2
Convention Halls
A3
Int. Exhibition Centers
A3
Health Rehabilitation Centers
B1
Activities
Incentives
7.4 Logistics service centers
7.4.1 Distribution centers: DC
B1
7.4.2 International distribution centers
– IDC
A3
7.5 International headquarters – IHQ
B1
(Only machinery
for R&D and
training activities)
Activities
Incentives
7.6 International trading centers: ITC
B1
7.7 Trade and investment support
offices: TISO
B2
Some ROH Investments in Thailand
Thailand
Your International Trading Center
International Headquarters (IHQ)-Eligibility
1/2
• A juristic company incorporated in Thailand providing the
following services to IHQ’s foreign branches or associated
enterprises
Org. admin. and mgt. & business planning
HR & training and
dev.
Sourcing of goods
Business advisory
services
R&D
Econ. and inv.
analysis and research
Technical support
Mkt. and sales promo.
Credit mgt. and control
Treasury center
International Headquarters (IHQ)-Eligibility
2/2
• Must supervise associated enterprises in foreign countries or its
foreign branches in at least one country
• Paid-up registered capital must not be less than 10 mil. Baht
• Have total business spending of at least 15 mil. Baht/yr in Thailand
International Headquarters (IHQ)
Revenue Department incentives:
Corporate Income Tax
(NP = Net profits, AE = associated
enterprises)
• exemption for income from services provided to foreign branches or AE;
• 10% for income derived from its branches or AE in Thailand
• exemption of NP from revenue from purchase and sale of goods to its
foreign branches or AE and such goods are not imported to TH (OUTOUT)
Personal Income Tax at the rate of 15% for expatriates in specialist or
executive level working in IHQ.
Specific Business Tax exemption on loan taken out by IHQ to relend to
its branches or AE in TH and abroad.
Withholding Tax exemption on interest received from its branches or
AE in TH and abroad for loans granted in accordance with BOI
regulations.
40
International Headquarters (IHQ)
BOI incentives:
• Majority or total foreign ownership
• Permission to bring skilled workers and experts to work in
promoted activities
• Permission to own land
• Repatriation of foreign currency
• Exemption of import duty on machinery (Only machinery for
R&D and training activities)
41
International Trading Centers (ITC)
• A juristic company incorporated in Thailand providing
purchase and sale services as well as other related services
to juristic companies incorporated in oversea.
Sourcing of
goods
Warehousing and
inventory services
Packaging
activities
Goods delivery
services
Goods
insurance
Advisory, Technical and
Training services about trading
Other services as in Notification of the
Director General of Revenue Department
• The paid-up registered capital must not be less than 10 million
baht.
• Have total ITC business spending of at least 15 million baht per
year in Thailand
International Trading Centers (ITC)
Revenue Department incentives:
Corporate Income Tax
• CIT exemption of net profits from revenue from
purchase and sale of goods to its foreign branches or
associated enterprises and such goods are not imported
to Thailand (OUT-OUT), including revenue from
marketing and logistics abroad.
Personal Income Tax at the rate of 15% for expatriates in
specialist or executive level working in ITC.
43
International Trading Centers (ITC)
BOI incentives:
• Majority or total foreign ownership
• Permission to bring into the Kingdom skilled workers
and experts to work in investment promoted activities.
• Permission to own land
• Repatriation of foreign currency
• Exemption of import duty on machinery
44