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Although this is my maiden voyage at The Boathouse, the beachfront boutique hotel is far from unfamiliar to me. Its stellar reputation for fine dining and unbeatable hospitality precedes it. News of my staycation is met with excitable envy from friends and colleagues who too have heard that The Boathouse is the place to be.

Tracing the history of the hotel, I discover that it wasn’t initially a hotel at all. It was both a dwelling for fishing boats and a popular restaurant. Rooms were added in answer to diners’ demands to stay the night, and it became affectionately known as “The restaurant with rooms.” Celebrated architect and artist Mom Tri Devakul later designed The Boathouse you see today, putting the hotel firmly on the map since 1989.

The Boathouse has held onto its roots, despite restorations, modernisation of its décor, and the rapid development of the neighbourhood surrounding it. Nods to its nautical past can be found at every corner, and the hotel retains a calm, noble presence on a busy road of souvenir shops, massage parlours and bars.

The restless neighbourhood is forgotten the moment the sliding glass doors close behind me and I’m greeted by Siriluk Watthaisong, one of the hotel’s affable reception staff. As she diligently checks me in, my attention is drawn down the corridor behind her where I spy the sea – a sight that doesn’t get any less thrilling with age – and the excitement for my stay truly sets in.

Pair leads me up to the top floor and into the luxe environs of the Hideaway Suite. And hide away I very well might, as my spacious lodgings have everything I could ask for. A plush king size bed takes centre stage, sprinkled with violet orchids and a handwritten welcome note from General Manager Eric Weber. The warm greetings extend to the 49-inch flat screen TV which lights up with a personalised message across a tropical screensaver.

Separating the bedroom and bathroom is a relaxation lounge complete with a cushion-clad chaise longue, floor-to-ceiling mirrors, flattering lighting and a wardrobe with towelling robes and slippers. Needless to say, I immediately commandeer the space and it becomes the walk-in wardrobe/dressing room I’ve always dreamed of.

The Boathouse team have left no stone unturned when it comes to the bathroom space. Indoors are twin washbasins, a deep rectangular tub complete with a colourful bath bomb and salts, and a lavish rain shower. Amenities, including mosquito repellent, are dispensed from refillable ceramic containers to the benefit of the environment and the aesthetics of the bathroom too.

Remarkably, this en suite has an en suite of its own. Outside stands another rain shower nestled behind carved wooden panels and next to pruned flowers and foliage. It boasts a spectacular, although worryingly expansive, sea view. Pair senses my mix of fascination and fear for my modesty and assures me that the terrace has been carefully designed so that any al fresco bathing will be totally private. I take her word for it.

Phuket’s culinary landscape has indeed evolved over the past ten years and noticeably more acutely in the recent past twelve months. Visitors to Phuket from across the globe, and those who are fortunate to call it home, have become markedly more demanding in what they seek to consume whilst on the island. The increased presence of social media across all age groups has amplified our hunger for unique gastronomic experiences. Both first timers to Phuket and even our resident population, non-Thai and Thai alike, have been quietly cultivating a high level of inquisitiveness in the multitude of food trends and pioneering chefs practicing them. This curiosity has peaked even higher with the arrival of the Guide Michelin. A growing number of vegetarians and vegans, defined not only by belief but also many purely by lifestyle choice, and the emergence of dietary restrictions and allergies have tested chefs’ creativity to deliver on a daily basis. Food trends of sustainability, experimental molecular gastronomy, fusion, modern Thai and hyperlocal farm-to-fork are eagerly followed, liked and commented on through Instagram and Facebook. But sometimes all we yearn for is a traditional fish and chips or a tender steak! Yes, perhaps today, it must be a line-caught fish for us to feel that we are doing our bit towards avoiding the sad depletion of fish in the ocean, while our steak must, of course, be wagyu to satiate our clamour for the best. And chips? Mandatory twice- or even triple-cooked with duck fat an essential ingredient in the process.

But let’s perhaps take a step back, diners and chefs; are we not unnecessarily over-complicating this? Surely memorable dishes can be created by letting the products speak for themselves?

So how do Executive Chefs meet and truly exceed today’s diner expectations? In this first feature on food trends in Phuket, I have invited Jonathan Bruell, Executive Chef of The Boathouse and Alberto Zaniboni, Executive Chef of The Surin – two leading chefs of landmark upscale resorts – to share their approaches to delighting diners.

There are almost as many answers as there are boutique places to rest your head. But as this is one of the fastest growing sectors in the hotel industry, the question really does deserve an answer.

First base for a boutique hotel should be taking special care with even the smallest of details, from location to design to outstanding personalised service to the best ingredients in its restaurants. The ‘boutique objective’ should be to become a one-of-a-kind host.

Some boutiques are based around concept (such as our very own The Boathouse Phuket), while some may offer individually themed rooms or suites (like the Mustang Nero Hotel featured in our Jan-Feb issue). But what really should make a boutique hotel special is its unique personality – as defined by the personality of its creator or manager. Just as you won’t find two people exactly alike, you should not find two boutique hotels exactly alike.

Global challenges

Globalisation has advanced significantly at an ever faster pace. However, this is now being challenged through issues such as trade tariff ‘wars’, states seeking control over data and technology by imposing restrictions on 5G technology market participants, wealth inequality, climate change dischord and supply chain realignment due to technological advancement.

Balancing international and domestic norms

Whilst this has an effect on all of society, those that elect to invest in developing markets such as Thailand must establish how to strike a good balance between international norms and practices and cultural and domestic norms, which interplay and can affect standards of business with varying degrees of positivity and negativity.

Avoiding a race to the bottom

If we apply a basic ecosystem theory to business, then Thailand is a mini-system inextricably linked to the wider global system. Therefore, the adoption of business standards must take into account both international and Thai standards to produce optimum results. In order to avoid an aggregate result of lowest common denominator standards, your operation standards and objectives must be analysed in the context of both international law and domestic law. If you are to understand your legal framework of operations correctly, then it would be wise to obtain legal advice on both.

Global trade standards – ICC Incoterms 2020

Thailand continues to adopt or promote international standards and in certain business areas this results in successful outcomes. For example, the International Chamber of Commerce (“ICC”) of Thailand, part of the ICC which is the world’s largest global business organisation and sits as an observer member of the United Nations, has launched a revised set of standards for global trade, referred to as INCOTERMS 2020. These set out situations of trade where certain pre-agreed understandings are incorporated into an agreement between trading parties and intermediaries. The use of standardised international terms means that there is a significant reduction of potential conflict, and an increase in the efficiency and financial optimal results, in trade. These terms work perfectly well within the domestic framework of Thai law, other jurisdictions, and the global legal framework.

Conflict of laws

Similarly, when conducting business, which involves international investment, international standards can be brought into a framework with good results, provided there is no conflict with Thai law. To establish this, an understanding of both Thai laws, other laws and international law is required. For example, if a successful hotel and branded residence development company wishes to expand its operations into Thailand, it cannot do so without adapting its model and standards to conform. Whilst this seems obvious in its simplicity, the nuances of local laws may require a change in processes and standards which will affect budgeting and standards. Any contractual or corporate arrangement with a hotel brand would need to take these differences into account to be successful.

Corporate governance

Corporate governance for investment situations also requires smart analysis and incorporation of standards. Businesspeople accustomed to a certain style of corporate governance may not be prepared for domestic differences in small-medium enterprises in Thailand. Therefore, when setting up or acquiring an interest in a Thai company, and considering how that company will be managed, how decisions will be made, an alignment between your international corporate governance standards and expectations, and those domestically will be necessary.

Paper protections versus real risk management

Part of the purpose of standards is to assist business players value investments and businesses by reference to an accepted yardstick. Therefore, legal tools used to secure rights can be categorised by usefulness by reference to their strength and timing of implementation. For example, understanding the global/Thai standards interplay before making an investment, through due diligence and analysis, will mitigate risk and avoid conflict/unnecessary expense. Creating contractual protections with conditions prior to investment is also a good pre-payment tool. Representations and warranties and a ‘claw back’ in a commercial contract may be rendered ineffective if there are no substantive monies available, such as a guarantee or escrow, to support a claim made after an investment.

Wide-thinking approach increases potential investment returns

Thailand has a wide-ranging raft of domestic standards and accepts international standards as part of its legal framework. To navigate a transaction and produce optimal results, you and your advisors should work together to make certain that as many angles as possible are covered to ensure the value you attribute to an investment is properly reflected with risk discounts and premiums. This requires a multi-faceted understanding of the Thai business environment, law, business practices, cultural nuances and international practice.

By Desmond Hughes, Senior Partner of Hughes Krupica.
Hughes Krupica is a law firm which specialises in Real Estate; Construction; Hospitality; Corporate; Commercial; Personal Injury; Dispute Resolution; and Litigation, operating in Bangkok and Phuket, servicing clients in relation to their business activities in Thailand and in other regions of Asia.

Most property buyers in Phuket are not aware that their rental income is subject to tax. Whether this is wilful ignorance or simply negligence doesn’t change the fact that the tax liability is real.

Whether you live in Thailand or overseas, any Thailand-sourced income you earn is taxable, and that includes rental income from Phuket real estate. But while the tax is based on the income tax bracket in which you fall, the permitted deductions mean it is actually not that punitive.

The rate of withholding tax does change depending on where you live, and it should be paid as and when your rental income is collected. If you are a tax resident of Thailand, 5% of any income paid to you by a “juristic person” must be withheld, whereas no withholding tax is payable on rent paid by an individual. If payment is made to individuals who are not tax residents of Thailand, a 15% withholding tax applies across the board. (Please Note: not only landlords are liable for withholding tax. The tenant is jointly liable, so any renters or lessees must be aware of this!)

If you own the property you may deduct a flat 30% for expenses and upkeep, but if there is a chance that your bills will run higher than this, deductions can itemised. (Be sure to save your receipts for everything related to the property!) Please note this deduction only applies to owners. If you have a leasehold villa, which you are renting out, you are not the owner. Technically speaking, you are only sub-letting it, and therefore not able to claim any such deduction.

While on the topic of villas, it is mind boggling how many people don’t know that living in a villa owned by a Thai company creates a separate income tax liability. A number of foreigners are directors of the company which owns their home. Unless they are paying rent to the company, that home becomes a perk of the job. Not only is the amount of fair market rent taxable as income to the individual, it is also taxable as rental income to the company. (This does not apply only to villas, but also to condos, bungalows or any property.)

Foreign Direct Investment
Thailand has a vivid commercial landscape with a wide variety of options for investors, especially due to promotion of industries, which Thailand’s government has pinpointed as a target for foreign direct investment. Thailand continues to make improvements to its systems, with the introduction of “SMART VISAs” through its Board of Investment organisation, and regular review and revision of the range of investment activities eligible for special incentives. It is well worth keeping a watchful eye out for changes, which can provide excellent opportunities for tax burden, import/export efficiency and foreign labour hiring benefits.

SMEs Welcome, Consider Macro Factors
When new entrants to Thailand’s market consider the opportunities and challenges before them, I believe that even with investments considered ‘small’ in the context of Thailand’s national economy, it is still worth being up to date with the macro-economic, socio-political position. This can truly assist with logical rational decisions when deciding who should do what in a contract with a domestic Thai company or business partner.

As with all developing countries caught between sophisticated development and elitist wealth at the high end of the spectrum, and the struggle to improve the position of poverty line, working and middle class segments at the lower end, there can be teething problems.

Thailand has a mixed bag of results on the various global indices and world reports. It is ranked 27th in the ‘Ease of Doing Business Index’ published by the World Bank, joint 99th on the ‘World Corruption Perception Index’ published by Transparency International alongside Albania, Bahrain, Columbia, Philippines and Tanzania. It is ranked 77th out of 126 countries for its rule of law in the ‘World Justice Project Index’ and reportedly has one of the most acute income inequality issues worldwide reported by various institutions, including a respected Credit Suisse report. The OECD has well regarded economic reports on development progress across industries, human rights infringements are reported on in depth by Amnesty International, and Thailand is currently ranked 52 in the world in the ‘World Happiness Report’.

An institution among locals and visitors for over 30 years, The Boathouse serves authentically prepared Thai and western favourites, matched only by its collection of over 600 mostly Old World grape-based beverages. Here are some all-time favourites of The Boathouse restaurant…

Gaeng phed kati poo
Another favourite dish is the gaeng phed kati poo. A perfect blend of crab meat in spicy yellow curry, coconut cream and fresh betel leaves. A true local Phuket favourite.

Lamb shank massaman
The restaurant’s bestselling dish on the menu, often described by guests as “world’s best Massaman”. The recipe and preparation is very authentic, its uniquely southern Thai flavours come from a blend of indigenous spices, to which Thai Executive Sous Chef Jimmy Nithan adds a personal twist.

Half shell scallop pomelo citrus hollandaise
Cold water Chilean scallops topped with refreshing hollandaise sauce. Always a winner in Executive Chef Jonathan Bruel’s menu. It was his first ever signature dish back in Sydney, Australia.

Smoked haddock and salmon fish cake in mustard sauce
Made with fresh Scottish smoked haddock and Tasmanian salmon. An original dish taught to chef Jonathan by his mother, prepared with passion and inspiration, bringing back many childhood memories.

Featuring towering casuarina and pine trees, long stretches of well-preserved beaches and ample amounts of diverse flora and fauna, Sirinat National Park is a stunning, unspoilt park not far from Phuket International Airport. The surrounding neighbourhoods, although home to some of the island’s biggest resort names and patches of development, have managed to retain a local feel. Life seems to move at a slower pace here, and lazy days can be spent exchanging smiles with friendly locals and exploring the variety of tiny side streets and alleys that lead in and out of the national park area.

Sirinat National Park is composed of four beautiful beaches – Nai Thon, Mai Khao, Nai Yang and Sai Kaew. Each beach is just as attractive as the other, and sure to provide the quintessential tropical beach day that so many expats crave and tourists travel to Phuket for.

Nai Thon Beach is a welcoming stretch of sand that is home to lovely shades of blue water. There are various rock pools here as well as a small reef, making both snorkeling and scuba diving an excellent choice of activities. The winding road that leads to Nai Thon Beach showcases some of Phuket’s last remaining virgin jungle and crosses through a tiny, charming village.