Why is Hua Hin so expensive?

[migrant]

Over here in the states anytime you add tourists to waterfront, and factor in easy accessibility to a big city, you have a dramatic price increase in most everything.

Disneyland is near us (and Mrs M works there). They recently bumped up their annual pass price by a large margin. They decided their target market isn't the local, but the tourist. The tourist expects to pay extra, and usually budgets for it.

[Dr Mike]

I am in Shanghai, a friend of mine arranges something with a minimum of effort. Each week he selects a bar for Thirsty Thursdays. He goes to them and says, OK next thurs I will bring at least 30 ex-pats here, BUT it must be happy hour prices all night, they agree, he sends out an Email--it works.

[Pagey]

Dr Mike, I am sure most bar owners here would do that also if asked. Mind you some bars here are probably too small too accommodate 30 expats comfortably !

And many bars down Soi 80 sell beer at happy hour prices all night anyway.

[Homer]

When demand exceeds supply prices rise to an equilibrium. (Or something like that - it's been too long since I took Econ 101.)

The high cost of living in HH is a good thing, IMHO. It helps keep the riff-raff out.

[margaretcarnes]

When demand exceeds supply prices rise to an equilibrium. (Or something like that - it's been too long since I took Econ 101.)

The high cost of living in HH is a good thing, IMHO. It helps keep the riff-raff out.

I understand what you're saying Homer, but find it difficult to believe that applies to farang watering holes in HH? Maybe for the few like the Hilton and Sofitel which have package tourists who daren't venture far, and which will also attract a few HiSo Thais. But otherwise it's pretty much farang ie expat bars for farang, and Thai bars for Thai weekenders.
Unfortunately for many farang bar owners it's a balancing act between demand, supply and the rent.

[Homer]

When demand exceeds supply prices rise to an equilibrium. (Or something like that - it's been too long since I took Econ 101.)

The high cost of living in HH is a good thing, IMHO. It helps keep the riff-raff out.

I understand what you're saying Homer, but find it difficult to believe that applies to farang watering holes in HH? Maybe for the few like the Hilton and Sofitel which have package tourists who daren't venture far, and which will also attract a few HiSo Thais. But otherwise it's pretty much farang ie expat bars for farang, and Thai bars for Thai weekenders.
Unfortunately for many farang bar owners it's a balancing act between demand, supply and the rent.

Rent. Yes. Between limited land and the demand for it, rents aren't cheap. Bad traffic and geography means location is important, further raising rent. Those higher rents are paid by employees and businesses the farang watering holes buy from.

The owners of my apartment know their rent is high, they've joke about it. But the place is filled from mid Oct til the kiteboarders leave town. 1/3 of the apartments are rented annually by farangs who come only for high season. We could live elsewhere. We don't. That also works against cheap rent.

[Roel]

If property prices are the deciding factor then Phuket has to be a lot more expensive than HH, but not sure if that's the case. - anybody have knowledge of comparable prices between Phuket and HH for things that BL mentioned?

Let me assure you that Phuket is more expensive than Hua Hin.
Just read in a Phuket online new source that there is a shortage of police officers on the island mainly because nobody wants to be stationed here due to quote "high cost of living" unquote.
To compare:
Every day food
A simple one plate meal from a street stall cost 60-70 Baht (not tourist price, this is what the Thais pay). I paid for the same in Hua Hin (although a few years ago) 30-40 baht.
Massage
Start from 300 Baht/hour traditional massage. Oil more expensive. No idea about the prices of this in Hua Hin.
Shopping
In another thread a member mentioned he bought a Philips Aqua electric shaver in Hua Hin for THB 2,498. Recently I bought the same model in Tesco Phuket for THB 2,790.
Taxi
Most people have heard about the Phuket taxi maffia controlling the market and charging heavily inflated prices. Those who undercut and charge reasonable fares are intimidated and threatened. Operation of the recently introduced shuttle bus from the airport to the beaches was postponed due to threats of the tuk tuk maffia that bad things will happen if it starts running.

[Khundon1975]

There is a basic difference in mindset and philosophy: Thais want to be seen to be paying more because it makes them look better amongst peers, whereas farangs are always looking for the discount and the cheapest they can get because they want to stay here as long as they can before having to go back to the hellhole form which they came.

Very true buksida

When we had the coffee shop on Naeb kehardt road, most of our customers were the BKK set (and very few ex pat farangs) who came to HH for the weekend and wanted to be, as you say, "seen to be paying more to eat, in what they considered to be, the best places".
My wife used to charged up to Baht 1200 for a cake and they thought nothing of ordering several to take back to BKK for their family and friends. She also supplied several European restaurants and they seemed happy to pay those prices as well as they put a 100% mark up on them, when they sold to farang and Thai holidaymakers!
Prices in the coffee shop remain about the same as in 2002 and they get packed every weekend.

usual suspect
It's the same with most businesses in HH..Thai-Chinese own the buildings all over town & they will up their rent every 6 months..(even when you sign a 12 month contract)..so general prices here could reflect this.
(1 of my pet-hates here in LOS are the greedy, ignorant Thai Chinese).

Have to disagree on that point mate.
Our landlords were Thai/Chinese and could have not been nicer to us. Our rent (2001) was 30,000 Baht per month, including water, electric, security guard and gardener and the wife's family is still only paying Baht 30,000 a month per house (they now rent two houses in the compound) for the same deal. We had no formal lease with them, just a hand shake.
In 2002 they had some building work done in the compound they owned and put our rent down to 15,000 a month without us asking for a reduction!
You try and find a seafront 4 bed house with a garden between the Palace and the Chiva Som for 30k, I bet you won't.
So you cannot tar all with the same brush.

HH for the rich Thais is perfectly placed for a short break and they have the money to spend. Good for business but not good for ex pats on a tight budget, who retired here when the exchange rate was a lot higher and who now find there income almost halved.
For cheaper property, restaurants and bars, you have to move out of the centre, but that applies to any large and growing town wherever you go, doesn't it?

[Dr Mike]

Expensive compared to where?
Compared to Europe, N America, Australia, Japan, Korea and China---HH is very inexpensive.

[STEVE G]

For cheaper property, restaurants and bars, you have to move out of the centre, but that applies to any large and growing town wherever you go, doesn't it?

Yes; we moved out to Hin Lek Fai last year and you can live as cheaply out there as virtually anywhere in Thailand if you want to and it's still less than 10km into town.