The Competitive Nature of Koh Phi Phi Bars

I reckon whenever New Zealand publicans whinge and moan about the competitive industry they operate in they should be made to take a compulsory holiday in Koh Phi Phi.

In Phi Phi three main beach bars operate, these are Ibiza, Apache and Slinky. To get customers they (like many other bars in Phi Phi) have numerous people on the street handing out flyers. In addition they also offer free buckets (Vodka or Bourbon) twice per night, at different times to each other (no indication of collusion). As a customer you (if you were so inclined) could get as many as 5 free buckets a night. Of course you would need to stay standing.

There are low barriers to entry, obtaining a liquor license cannot be hard in Thailand. Plus no physical barriers to a beach bar; for example you can buy a beer at the 7 Eleven (on the beach) and take it into a beach bar.

Beach bars have it hard in Koh Phi Phi. Since there is no liquor ban prices are a lot more competitive between the onsite and offsite retailers. You may pay $60 THB in a corner store and $100 in a bar, nothing close to the commonly 400-500% mark-up you see by NZ publicans.