Where the smart money is going: Phuket Post talks to Dr. Allan Zeman

(2005-12-29) Phuket Post

Among the largest overseas investors in Phuket, Dr Allan Zeman’s innovative projects have included the Lan Kwai Fong entertainment area of Hong Kong, his adopted home city, and casinos in Nevada and Macau. Phuket Post caught up with Dr. Zeman for an indepth discussion on investment in Phuket.

Where the smart money is going: Phuket Post talks to Dr. Allan Zeman
INVESTMENT Q&A


Among the largest overseas investors in Phuket, Dr Allan Zeman’s innovative projects have included the Lan Kwai Fong entertainment area of Hong Kong, his adopted home city, and casinos in Nevada and Macau. Phuket Post caught up with Dr. Zeman for an indepth discussion on investment in Phuket.

PP: What is the extent of your investment in Phuket and how does this compare with your Hong Kong interests, both in a professional and personal sense?

AZ: I have a house on Phuket, quite a substantial house by any stretch, [the building occupies a headland above the beach at Laem Singh] the Plaza shopping mall, the Silk restaurant, property developments including the Andara, being built in Kamala, and a hotel under construction, so my investment is quite significant, although minuscule compared to my Hong Kong interests.

PP: Has your outlook on the future of Phuket changed since the tsunami?

AZ: I take my hat off to Phuket. I’m committed to the place. I feel strongly about it. Phuket has international appeal and now everyone in the world knows where it is. The island’s climate is quite remarkable, sunny all the year round. Compared to Hong Kong, its wet season is not worth talking about. Compared to other places, it’s reasonably priced and you can have a first-class holiday experience there. More and more people who are successful elsewhere are moving to Phuket and using it as their prime residence. It has good schools and good hospitals.

PP: What were your thoughts on the tsunami, and the year that followed?

AZ: The tsunami was very tragic, something that people have not experienced before. But Phuket has bounced back. The island and its leaders handled it very well. The rebuilding has proceeded smoothly and is a lot better in many cases than before the tsunami. The government has faced criticism but then that is the same everywhere. It was a horrifying experience, a lesson in how nature can turn on itself and then subside, all in a matter of minutes. I watched it all from my house above Laem Singh beach. Afterwards, the beach was completely washed clean, free of lounge chairs, and everything else, just the way it looked years and years ago. I’ve been impressed since by the early warning system after sitting on a plane alongside Khun Smith, who predicted a tsunami many years ago. He gave me confidence because the government was acting.

PP: How does the Phuket experience compare with Hong Kong?

AZ: I sold two houses just yesterday to Hong Kong residents. Property prices have gone up, not dropped. I feel strongly about Phuket’s future and I’ll continue to grow other businesses. Sometimes, business on the island can be challenging. It’s different to Hong Kong. Government interference in Hong Kong is limited. Thailand is still quite bureaucratic. The system is still quite primitive. One document I had to submit recently needed to be signed 25 times. This is like the old days in China.

PP: Some people here accept the tragedy and then add that the tsunami
also represent an opportunity. Do you share that outlook?

AZ: There’s opportunity after every tragedy, unfortunately. Opportunities come for risk-takers. There’s a lot of opportunity in Phuket. Fortunately the government is protecting a lot of land with regulations preventing development above 80 metres, and there’s no more land available with sea views. Now they are also enforcing the law to prevent building on the beaches and set-backs. That’s all good.

PP: It’s been suggested that Phuket should pursue other sources of income besides tourism. Do you have any thoughts on that?

AZ: Any resort will find it difficult to attract other sources of income. One idea that has potential is the island as a medical hub. The hospitals are very good and many people are already visiting from the Middle East for treatment. As costs continue to rise elsewhere, especially in the US, more people will come seeking treatment. There is talk of Phuket becoming an IT centre but I’m not so sure that’s ever going to happen. Tourism-related industries are what will continue to work here.

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