The government said it will close duty-free shops in the arrivals areas of international airports to encourage tourists to spend more at domestic stores.
According to the Bangkok Post, the Thai cabinet has just confirmed that all duty-free shops in the arrivals area at the country's eight major international airports, including Suvarnabhumi, Don Mueang, Chiang Mai, Phuket, Hat Yai, U-Tapao, Samui and Krabi, will be closed. The specific time of closure has not been officially announced.
It is known that Thailand will soon close duty-free shops at its eight major airports.
With the new policy, the Thai government estimates that visitors who do not have access to duty-free shopping will spend an average of 570 baht (about $15.60) more elsewhere in the country during their trip. The Thai Finance Ministry estimates that retail sales after the policy is implemented could increase by more than 3.5 billion baht (96 million USD) per year.
The closure of duty-free shops has been agreed by duty-free operators and will come into effect in the near future. However, there is currently no official announcement on the specific date of implementation. Tax incentives for bonded warehouses on arrival will also be suspended.
Thailand has agreed to promote the Southeast Asian nation as a tourism and shopping hub.
The Finance Ministry estimates that the closure of duty-free shops in arrival areas at international airports will boost foreign tourists' spending by 570 baht per person per trip.
The Thai cabinet has previously agreed to promote the Southeast Asian nation as a tourism and shopping hub. The Thai Finance Ministry has proposed a number of policies, including considering reducing taxes on alcoholic beverages, lifting the ban on alcohol sales between 2 p.m. and 5 p.m., and relaxing the operating hours of nightlife centers.
Tourism is a key driver of Thailand’s economy, accounting for nearly 20% of gross domestic product. In the first four months of this year, foreign arrivals recovered nearly 90% compared to the same period in 2019, before the COVID-19 pandemic.
