Khlong Toei and U-Tapao could emerge attractive areas for investors

The criteria for the development of entertainment complexes after the passing of the law could make Khlong Toei in Bangkok and U-Tapao attractive options for investors.

After the Cabinet approved the entertainment complex project on January 13, former prime minister Thaksin Shinawatra, on January 18, outlined the timeline for the government's efforts to push forward the Entertainment Complex law within this year, with plans to establish a committee early next year to define the regulations and bid details for selecting investors.

A study will be conducted on the suitability of investment locations, considering several factors. The area size may be no less than 300 rai (48 hectares), and key criteria include:

● Availability of appropriate infrastructure, such as transportation
● Proximity to tourist destinations
● State-owned land to generate rental income for the government

The government views entertainment complexes as a means to promote new investment and stimulate economic circulation. This area will consist of 4-5 star hotels offering at least 5,000 rooms, international conference and exhibition centres, sports stadiums, a world-class concert hall, shopping centres, duty-free shops, amusement parks, restaurants, and event venues. A casino will be a part of the complex, but it will only occupy a portion of the development area, with space proportions to be determined.

Currently, two potential locations have been highlighted for the development of the entertainment complexes, with the landowners confirming their readiness to proceed with development. These areas are Bangkok Port in Khlong Toei and U-Tapao Aviation City, as both locations already have plans for commercial development. 

They also serve as landmarks with convenient transportation infrastructure and are close to key tourist attractions in the country.

Regarding Bangkok Port, the Port Authority of Thailand (PAT) has conducted studies on upgrading the port and surrounding communities through a Smart Port development plan on a 2,353 rai (376.4 hectares) area. The mixed-use project aims to develop residential buildings in the Khlong Toei community, build a free-trade zone (Bangkok Port Free Zone), increase commercial activities, include shopping malls, convention centers, and duty-free areas, among other facilities.

PAT director-general Kriangkrai Chaisirivongsuk said that if the government decides to develop this area into an entertainment complex, it could proceed, but the details of the project would need to be reviewed. This is because the port area is governed by the PAT Act of 1951, which stipulates that the land was expropriated for port operations and development to serve the state and for public benefit. It must be used for port and logistics operations.

As for U-Tapao Aviation City, the area is currently operated by U-Tapao International Aviation Co Ltd, which plans to develop it into an entertainment complex. The planned complex will include shopping malls, hotels, duty-free shops, food courts, and a Formula 1 race track, among other attractions. However, there are currently no plans for a casino development.

Puttipong Prasarttong-Osoth, president of Bangkok Airways, had earlier said that if the government pushes forward with the entertainment complex plan, including the legalisation of casinos, U-Tapao Aviation City becomes one of the targets for development, as  it could create opportunities to attract investors to lease land and invest in the project.