Oct. 8--Thailand was once a haven for golfers from around the world lured by attractive courses, low fees, good accommodation and excellent services. 

But now at least a quarter of the country's 200 or so courses are struggling to survive. Like many other businesses, they have been hit by the recession, with revenue from service charges falling as well as membership subscriptions. 

Golf club memberships used to be seen as an investment, like shares, with the rights bought and sold amid keen competition for those at prestigious courses. 

During the economic boom, memberships were traded by speculators who had little interest in the game. 

To revive the business, the Thai Golf Course Association has asked the government for help. Association president Varin Pulsirivong urged the Tourism Authority of Thailand to organise tours for foreign golfers. 

He said his Royal Chiangmai Golf Resort in Chiang Mai drew at least 30,000 foreign golfers a year. The country's courses combined could serve a total of one million foreign golfers a year. 

However, the TAT recorded only 350,000 foreign golf tourists, 4 percent of all foreign tourist arrivals in 1999, generating about 22 billion baht in revenue out of a total of 270 billion baht. No figure for last year is available. 

Mr Varin said the TAT should promote the ailing golf courses, mostly situated in the Northeast, especially Nakhon Ratchasima, rather than promote courses on Phuket Island or coastal provinces that already attracted large numbers of golfers. 

The association asked the TAT to help organise a roadshow abroad. The TAT agreed to set up a joint working group and planned the first trip to the United Kingdom in November. However, the trip is likely to be postponed because of the terrorist attacks on the United States. 

Mr Varin suggested the government help struggling courses meet maintenance costs of about one million baht a month until business recovered. 

Many courses were unable to attract golfers although they charged only 150 baht in green fees per visitor, much below the standard charge of 550 baht and far below the 3,500-4,000 baht charged by famous courses in beach cities. 

Developers of many courses could not finish their projects as their creditors refused to provide more loans. Some converted their projects to housing estates while others sold part of their land. 

"Some sold more life-time memberships despite promises to sell only a limited number," Mr Varin said. 

As a result, members of some courses have found it very difficult to obtain a game because of over-booking. 

A life-time membership is not cheap. Rajpruek charges the highest at 2.2 million baht. 

The course is reputed to be one of the best in the country and is very popular with top businessmen and politicians. 

Blue Canyon in Phuket charges 900,000 baht over the counter, according to Sivachai Komthongsatid, managing director of the Golf Course Membership Exchange Centre Co. 

Most courses charge several hundred thousand baht. 

Laws classifying golf courses as "entertainment" venues have upset the Thai Golf Course Association and the Thai Golf Association, which together recently filed a suit against Prime Minister Thaksin Shinawatra and Finance Minister Somkid Jatusripitak in the Administration Court, accusing them of breaching the 1984 Excise Tax Law and Constitution Act. 

The associations said that golf courses were included in the list of "entertainment places" under an annex to the law. 

Therefore course operators have to pay 10 percent excise tax based on green-fee income, lifting their total tax rate to 23.64 percent. 

The two associations had petitioned the government for a review, claiming that golf courses were sports venues. 

However, Mr Somkid had disputed their case, they said, as he noted that "most golfers have a well-established financial status and therefore should pay the tax". 

The associations claimed that the decision breached the Constitution Act, which stated that individuals would be treated and protected equally regardless of their sex, age, health, economic or social status, religion or education. 

Mr Varin said he had invested 800 million baht in his golf course, which is in its fifth year of operation. 

He charged a green fee of 500 baht and had no membership club. 

He added that the golf course business earned him "a few million baht" profit a year. 

By Suphaphan Plengmaneepun and Somporn Thapanachai 

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(c) 2001, Bangkok Post, Thailand. Distributed by Knight Ridder/Tribune Business News.