Chiang Mai Province

Why invest in Chiang Mai Province

• Chiang Mai is a sophisticated tourist destination with boasting beautiful mountains, dense forests and a cool climate
• Chiang Mai is an attractive retirement destination with retirement visas available to foreigners over 50 years of age, according to financial means
• Property prices in Chiang Mai remain far below those in the more established markets, although they are set to continue growing quickly
• Thailand is one of the cheapest places to fly to in Asia
• Rental potential is great, due to increased government spending luring growing numbers of tourists
• Foreigners are welcomed and encouraged to invest

Source: www.mslestates.com/index.php/services/9-uncategorised/113-faqs

Investment in Logistics Aspect

Chiang Mai, northern resort of Thailand and Kunming in Yunnan Province of southern China are being promoted as tourism hubs within the Greater Mekong Sub-region (GMS).

The road network linking Thailand, Laos and China, named the “R3 route” will help complement the Thai government’s intention to promote Chiang Mai as an aviation hub for the GMS, which covers Southern China, Myanmar, Thailand, Laos, Cambodia and Vietnam.

Source: http://www.boi.go.th/tir/issue_content.php?issueid=93;page=228

Investment in Real Estate

The property industry in Chiang Mai is unstructured and only semi-developed, it brings out many good-value opportunities for individual buyers or larger scale investment. The biggest growth in Chiang Mai real estate from investing perspectives is the emergence of a luxury condo sector. Since these condos can be owned outright by foreigners, this remains the most popular means of investing in Chiang Mai property and real estate.

Source: http://www.1stopchiangmai.com/property/investing_properties

Properties in Chiang Mai are valued considerably lower than in Bangkok, Pattaya or on the islands, making them more affordable for the lower end investment budgets. Chiang Mai is less attractive than the coast or Bangkok for investors to invest in however the city has seen rapid growth in recent years and now is a good time to get in ahead of the rush.

Investment in Healthcare industry

Chiang Mai province is striving to be a medical and health hub in the Greater Mekong Subregion. In October 2010, Chiang Mai and Chiang Rai provinces signed a memorandum of understanding with Phuket, Phangnga, Ranong and Trang province for Joint tourism development response to the national strategy of developing Thailand into a medical hub of Asia. In particular, Chiang Mai has very good potential to develop healthcare industry because of its readiness in terms of equipment, experienced personnel and facilities.

Source: http://www.unescobkk.org/culture/culture-news/culture-news-details/article/chiang-mai-being-developed-as-a-creative-city/

Investing in Chiang Mai Province

Tourism and Service Sector

For years, there was a phrase that “only a day is enough to see things around Chiang Mai”. But today, Chiang Mai has changed to be an attractive tourists’ destination because of its great lifestyle, affordable cost of living, and modern infrastructure. In addition, Intriguing diversity among ethnic tribes coupled with breathtaking scenery makes Chiang Mai to be an enchanting place to travel. Chiang Mai is the province which generates highest income in the northern region of Thailand. Chiang Mai’s Gross Provincial Product (GPP) equals to Bath 51,998 million (2009). Income from hotel and restaurant liken income from travel. In addition to high quality infrastructure, low cost medical, dental and therapeutic services, the city is becoming increasingly known for its medical checkup and spa facilities. Thus, healthcare tourism has a significant focus on as an international marketing plan. This concept will lead to the increase in demand for Thai herbal products, food supplements, cosmetics and beauty products. Chiang Mai has about 10 private hospitals with a total of 2,250 beds and 700 doctors. The city also has 77 dental clinics which generated total revenues of about Bath 420 million in 2003. 30 spas in Chiang Mai have annual revenue of about Bath 300 million. It is also becoming a centre for traditional massage with more than 100 massages centers, employing more than 1000 workers and annual revenue is estimated at Bath 500 – 600 million.

Source: http://www.chiangmai-chiangrai.com/chiangmai_health_leader.html

Industrial Sector

Source: http://www.chiangmaipao.go.th/en/Economic-Indicators/

Chiang Mai’s labor force of non agricultural sector in Chiang Mai as of 1st quarter in 2010 is 42,427 workers, male and female, 22,916 people and 19,911 peoples respectively.

Source: http://library.cmu.ac.th/faculty/econ/Exer751409/2553/Exer2553_no344

Agricultural Sector

Source: http://www.chiangmaipao.go.th/en/Economic-Indicators/

Chiang Mai has total of 209,240 peoples work in agricultural sector, of which 132,606 male workers which represent 25.9 percent of the total labor force ratio, whereas Female labor force has 76,634 people, representing 21.7 percent of total labor force ratio.

Source: http://library.cmu.ac.th/faculty/econ/Exer751409/2553/Exer2553_no344

Signed Agreement

Bilateral swap agreements under the Chiang Mai initiative (2004)

Source: Progress report on the Chiang Mai initiative, 2004

Tourism Opportunities in Chiang Mai Province

Chiang Mai is the highest income generating province for its tourism in the northern region of Thailand. Chiang Mai has many factors supporting it to be an attraction for both local and international visitors Chiang Mai is a city of distinct beauty that has its own cultural heritage. Known also as the “ROSE OF THE NORTH” Along with its numerous ancient temples and building, Chiang Mai is also famous for its handicrafts.

Number of Tourists Visited Chiang Mai from 2008 to 2010

Source: http://thailand.prd.go.th/view_news.php?id=5542&a=2

Nature has made Chiang Mai become a favorite destination for not only foreigners but even Thai people. Thanks to the majestic mountains, valleys and its beautiful scenery. In the year of 2010, there were approximately 4.34 million tourists who had visited Chiang Mai, which generated approximately Bath 62.61 million for tourism sector.

Volume of Tourists in Chiang Mai in 2010 (in million)

Source: Chiang Mai Statistic Office

Tourists Growth Rate in Chiang Mai over the Years

Source: Relationship between number of Thai tourists in Chiang Mai and Thai economy, 2009

Ratio of Hotels and Restaurant income

Tourism industry is very attractive with the investors, thus there are currently about 113 star rated hotels, 103 resorts & spas, 113 budget hotels and guesthouse in Chiang Mai, also more accommodations have been built, especially in town. The accommodation in Chiang Mai can satisfy your budget range, around Bath 400 for economizing one, Bath 500 – 1000 for mid range and very comfortable for anyone who is willing to spend Bath 1000 – 3000

Hotels and restaurants generate an income of Bath 4,826 million which accounts for 9.2% of the total GPP. This is one of the leading incomes earning industry of Chiang Mai.

Source: http://www.tourismthailand.org/Where-to-Go/Chiang-Mai/Accommodation

Hotels and Restaurants’ Income from total GPP in 2007 (million bath)

Concepts of Walking Streets

To promote tourism in Chiang Mai, there come to the concept of Walking Street. Wualai and Tapae streets are selected to be blocked from vehicle traffic one evening in a week. The streets are turned into walking only areas and are filled with crafts, various local products and local foods. The concept’s idea is to support the local vendors to improve their economic status and also to promote Northern Thai culture through handicrafts, northern Thai antique, contemporary arts, products created from local herbs or other locally sourced raw materials as well as traditional food.

According to information from Chiang Mai Municipality, each street contains over 3,000 stalls and has more than 50,000 visitors per night. Each street generates more than Bath 200 million

Source: An Analysis of Economic Multipliers of Community Tourism in Chiang Mai

Chiang Mai Province Macro Economic Indicators

GDP & GDP per capita

Major Business Investors

Chiang Mai is a city of huge importance to Thailand economy. The city not only excels in the tourism industry but is also recording well in terms of its agricultural output. Taiwan is the largest foreign investor in Chiang Mai, accounting for nearly 21% of investment. The other major investors are Japan and Australia. The city has undergone a phase of rapid development in the last few years. Service sector is also on an all time high in this Thai city

Economic Activities (Million Baht)

Chiang Mai Province Infrastructure

Electricity,

Electricity service in Chiang Mai province is offered in 25 districts and 1,892 villages, containing 92.61% of all villages. Villages in jungles, forest conservation areas and national parks cannot access electricity. In 2004 there were 496,448 electricity consumers, a 10.98% increase on the preceding year. Total electricity consumption in the province was 163,046 million units, increasing 7.11% than last year. The major consumption in offices and factories, using 878.99 million kilowatts per hour, followed by residential users, government offices and public utilities, consuming 621.24, 100.60 and 29.63 million kilowatts per hour respectively.

Source: http://www.chiangmaipao.go.th/en/Economic-Indicators/

Communication

Chiang Mai is well connected with telecommunication network including  cellular and post office . And as for internet, high speed Wi-Fi is vailable  in Internet café and other selected  public places inlcuing restaurant.

Logistic

Chiang Mai is a regional vital hub for the Greater Mekong Sub-region, a long stay destination, an emerging health and education hub, recognized for its oriental handicraft center as well as positioning itself as a creative city. Chiang Mai will benefit greatly from such infrastructure as the R3A road and high-speed train projects.

Chiang Mai has most of the basic infrastructure, logistics and transportations facilities in place to connect other provinces as well as neighboring countries. Chiang Mai – Chiang Rai road is the main road linking the logistics and transport facilities to the neighboring countries. Chiang Mai has International Airport and good railway system which links to Bangkok.

Source: CBNA_NSEC Report, Pg. 77

Chiang Mai Province Demographic Profile

Population

In 2009, the total population in Chiang Mai was 1,670,317, which was 2.63% that of population of Thailand. The population density is 83.07 per sq.km while the area of Chiang Mai is 20,107.0 km2 (7,763.4 sq mi). 80% of the people in Chiang Mai are locals by birth and speak a dialect which is slight variation of the central Thai language. There are many hilltribe people living in the mountainous districts surrounding Chiang Mai such as Omkoi, Mae Jam, Chiang Dao and Mae Ai. The hilltribe people are agricultural, planting fields, raising animals and hunting for living.

Source: http://www.gochiangmai.com/facts.htm

Tribes in Chiang Mai

Source: http://a.northernthailand.com/hilltribes-of-thailand/374-chiang-mai-hilltribe-stats.html

Research and Development in Chiang Mai Province

Research and Development Centers

Chiang Mai Province Natural Resources

Chiang Mai has been known as “Rose of the North” because of its laid back atmosphere and mild climate most of the year. Chiang Mai is also welcome with promising natural resources of mountains, waterfalls, and other nature-based tourist attractions.

Arable land use statistics

Land use types in the CMCP area (1989-2000-2009)

Chiang Mai province is rich of arable land. According to Chiang Mai Province Statistics Office (CMCP) on land use change Chiang Mai from 1984 to 2009. Agriculture land use gradually converts to residential and commercial uses.

Source: http://umconference.um.edu.my/upload/163-1/Paper%2044.pdf

Organic fruit

A four-year project for promoting the sale and consumption of organic fruit and vegetables in Chiang mai has been launched by the Region Health Promotion Centre 10, with the aim of purchasing organic fruit and vegetables is more accessible to everyone. Therefore a stream of farmers markets has spread throughout Chiang Mai region.

Source: http://www.chiangmaicitynews.com/news.php?id=227

Chiang Mai Province Financial Services

Bank

Government Bank State-Enterprise

Government Saving Bank

1.       Government Housing Bank

2.       Bank for Agriculture and Agricultural Co-Operatives

3.       Small and Medium Enterprise Development Bank of Thailand

4.       Islamic Bank of Thailand

State Enterprise Bank

1.     Krung Thai Bank

2.     Thai Military Bank

Private Bank

1.     Kasikorn Bank

2.     Bangkok Bank

3.     Bank of Ayudhaya

4.     Kiatnakin Bank

5.     Citibank

6.     Thai Investment and Securities Company Bank

7.     CIMB Thai Bank

8.     Siam Commercial Bank

9.     Thanachart Bank

10.  United Overseas Bank

11.  Standard Chartered Bank

12.  Land and Houses Retail Bank

13.  SME bank

Interest Rate

On August 24th, 2011, SME bank entirely supports the “OTOP loan” and “Buying Workplace” loan offering low interest rate at Chiang Mai. The loan is provided at very special condition which is valid for 15 years offering the first year interest rate at MLR-1.5%, second year at MLR-0.75% and from the third year onward with the interest rate equals to MLR (the present MLR is at 7% per year) by way of capital exemption for the first 12 months (in the first year).

Loan interest rates and discounts

Insurance Services in Chiang Mai Province

Type of Insurance Service

1.     Health Insurance

2.     Home Insurance

3.     Car Insurance

4.     Business Insurance

Logistic Providers in Chiang Mai Province

Chiang Mai Province Business Associations

Chamber of Commerce and Industry

Business associations

Transportation in Chiang Mai Province

Chiang Mai is located in the north of Thailand, 700km away from Bangkok. It can be reached easily by fly from Bangkok to Chiang Mai international Airport which takes 1 hour, or about 8 hours by bus and 12 – 14 hours by train.

With a modern airport, Chiang Mai is major hub for domestic flights; there are at least 30 flights a day between Chiang Mai and Bangkok on variety of airlines. Airfares are also reasonable with both budget carriers and flag carriers.

Besides airways, there are 5 trains a day consisting of differing classes and speeds which depart from Bangkok to Chiang Mai. Overnight sleeper ticket is available for Bath 900.

Buses depart every hour from Bangkok and the price range is about Bath 500 – 800.