Thailand to shut duty-free shops at airport arrival areas to boost tourists’ spending at domestic stores
Thailand will be closing duty-free shops at arrival areas of international airports to redirect tourists’ spending.
According to the Bangkok Post, the move is projected to increase visitors’ spending at domestic stores by 3.5 billion baht (S$129.70 million) a year.
Source: Google Maps
All three operators of inbound duty-free businesses have agreed to suspend operations at eight international airports. The eight airports are:
- Suvarnabhumi
- Don Mueang
- Chiang Mai
- Phuket
- Hat Yai
- U-Tapao
- Samui
- Krabi
Deputy government spokesperson Rudklao Intawong Suwankiri said this aligns with the government’s aim to promote expenditure at domestic shops.
Thailand will close all duty-free shops to promote tourism
Citing the Customs Office, The Nation reported that the three duty-free operators generated 3.02 billion baht (S$111.90 million) in revenue at these airports last year.
It’s unclear when the duty-free stores will cease operations.
Source: Google Maps
The move is part of guidelines to promote Thailand as a tourism and spending hub. The guidelines also include removing tax benefits for “bonded warehouses for inbound duty-free shops”.
Explaining the move, Mrs Rudklao said tourists are less inclined to spend on domestic goods if they can buy products from inbound duty-free shops.
She added that the ministry will monitor the impact of the move.
The closure of inbound duty-free stores is expected to increase foreign visitors’ spending by 570 baht (S$21.12) per person per trip.
Ultimately, the goal will be to promote domestic consumption and use of local goods, as well as redirect spending, leading to an overall increase in economic value.
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Featured image adapted from Google Maps.
