Phuket's MICE Industry To Have a boost with ICEC?

Phuket’s decades-old of dream of having an International Convention and Exhibition Center (ICEC) took a step forward on May 28, when Tourism and Sports Minister Suwit Yodmanee ordered the formation of a provincial committee and gave it 60 days to decide where the center should be sited.

The move follows a May 25 meeting of ING Funds (Thailand) Co Ltd Managing Director Maris Tarab with Phuket Governor Niran Kalayanamit and Suwalai Pinpradab, Director of Tourism Authority of Thailand’s Southern Region 4 office in Phuket, at the Governor’s Office at Phuket Provincial Hall.

Mr Maris proposed that ING Funds build a 10,000-seat conference and exhibition center on some 2,000 rai in Mai Khao under the control of the Treasury Department’s State Property Management and Services Office, or Ratchapassadu.

Mr Maris’ plan for ING to completely fund the center’s construction on a 30-year “build-operate-transfer” agreement with the government was well-received by Gov Niran.

During a meeting with Prime Minister Surayud Chulanont in Krabi, Gov Niran was told to find private sector funding for the convention center, as the interim government had no intention of granting funding approval.

Under the ING proposal, the firm would rent the land under a 30-year lease, during which it would build and manage the center using subcontracted firms, both Thai and foreign, Mr Maris told Gov Niran.

“Construction could be completed within one year…All we need from the government is a land lease agreement,” he said.

Also attending the meeting was Montree Buritan, Managing Director of building firm EkCa Thai Co Ltd, which will design and build the center if the ING proposal is approved.

EkCA Thai already has plans drawn up for a meetings, incentives, conventions and exhibitions (MICE) center with seating for 10,000. The model, based on an existing convention center in Chiang Mai, could be easily modified for the Mai Khao site. Construction could begin within two months after approval, he said.

Gov Niran said, “This idea is brilliant. I have long been interested in finding private sector investment for a convention center, but usually we end up needing about 1 billion baht in government investment, and we have had trouble reaching any solid conclusions about where it should be located.

“This is the easiest way, especially as using Ratchapassadu land means we will not be required to comply with the laws that apply to private sector developments on state land or seek Cabinet approval,” he added.

Phuket’s tourism industry has suffered for too long from its inability to host large MICE events, he said.

The complex could attract further investment to Mai Khao, where an investment boom in medical services, spas and yachting could lead to the develop of a “new city” in line with provincial development plans, he said.