@Cha****
the original financial difficulties were around the perks, the golf, spa, etc. That was the original focus of the "membership" and they projected unrealistically high membership numbers and "for some reason" prepaid for all these services, contracts like 100m THB up front for golf, and then the members never came. There were also other dubious expenses. This was back in the 00s. That was all sorted out in the end, costs cut, staff numbers reduced etc.
More recently they have pivoted to focusing on the thing that people actually care about, i.e. the visa. They dropped the price and started offering memberships that were basically just the visa, 500k for 5 years, 1m for 20 years. This proved very popular, much more so that what they were doing before (2m+VAT for 20 years of perks) and their previously very very low membership increased significantly.
It increased further since the 2014 coup and the increasing "crackdown" on visa issues, many people who were previously doing visa runs or whatever took up Elite instead as one of the few hassle free options for under-50 unmarried etc. And even more, since the pandemic and the border closures, as it's one of the few options if you want to stay here you can actually get onto inside the country. So they have had a significant growth in membership and revenues. Interestingly from their own description of them as "elderly" it actually seems a lot of their membership since the pandemic would qualify for a retirement visa in normal times but can't get onto one due to the amnesty situation and closed borders.
Now a visa doesn't really cost the Thai state anything in particular, it's a sticker, but say we put the cost at the same level as all the other visas, namely, 2,000 THB.
So what they are doing, basically, is selling a sticker, a piece of paper, something that costs the Thai state some amount below 2,000 THB, for a sum between 500k and 1m. And that is virtually all profit. And this is most of their business now, it's not the perks, it's selling stickers for 500k-1m. That's a nice business model, much better than the perk one (unless you happened to be the perk provider) and yes, I think it is now unlikely they will again get into financial difficulties.
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