REPORTS RESULTS OF SUBWAY IMPACT ON ITS BUSINESS

Dusit Thani Plc. (DTC) reported the results of a discussion concerning the effects of the electric subway train on private businesses located on Rama 4 Road. The meeting was held on September 24, 1996 at 2.00 pm. in Dusit Thani Hall, Dusit Thani Hotel. It was aimed at hearing opinions, suggestions, as well as solutions easing the impact of the project on the business around the Dusit Thani Hotel. The details can be summarized as follows: 1. DTC itself, both administration and employees, do not object to the project, but requested that steps be taken to prevent a negative impact on local businesses, particularly Dusit Thani Hotel. 2. The Metropolitan Rapid Transit Authority has expropriated the land in front of Dusit Thani Hotel to use as a construction base and a sub-station. This will cause great damages to the hotel's business as it is very susceptible to such events. If guests are inconvenienced they will turn to competitors to fill their needs. 3. The speakers at the meeting were - Professor Dr. Ekasit Limsuwan, a lecturer of the Construction Engineering Department, Faculty of Engineering, Chulalongkorn University, and MD Koonthon Sunthornvech, president of "Rao Rak Krungthep" club - suggested that the routes of the project and the construction methods can be changed to avoid an impact on the business of Dusit Thani Hotel. It is also not necessary to expropriate the land of the hotel and private entities. This is against the principles of land expropriation. Expropriation should be done only in unavoidable cases. Moreover, the methods suggested by the two speakers are cheaper and will bring maximum benefits to the country. 4. If a change in the route of the subway project is not considered , Dusit Thani Hotel may have to close its business during the project construction, which will destroy the business in the long term. The hotel is not willing close its doors, but the construction plan and the route of the project will prevent the hotel from offering its usual excellent service to its guests. The bottom line is the guests will not use the hotel because it cannot match the service customers have come to expect in the past. 5. DTC will hold an extraordinary shareholders' meeting to work out solutions for the problem.