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The government has announced it will close duty-free shops in the arrival areas of international airports to encourage travelers to spend more at domestic stores.
According to the Bangkok Post, the Thai cabinet has confirmed that all duty-free shops in the arrival areas of the country's eight major international airports, including Suvarnabhumi, Don Mueang, Chiang Mai, Phuket, Hat Yai, U-Tapao, Samui, and Krabi, will close. The exact closure dates have not yet been officially announced.
Reportedly, Thailand will soon close duty-free shops at eight of its major airports.
Under the new policy, the Thai government estimates that tourists entering the country without the duty-free shopping privileges will spend an average of 570 baht (approximately US$15.60) more elsewhere in the country during their trip. The Thai Ministry of Finance estimates that retail sales revenue after the policy is implemented could increase by more than 3.5 billion baht (US$96 million) annually.
The closure of duty-free shops has been agreed upon by the duty-free business operators and will take effect in the near future. However, there has been no official announcement regarding the specific start date. Tax incentives for bonded warehouses upon arrival will also be suspended.
Thailand has agreed to promote the Southeast Asian nation as a tourism and shopping hub.
The Ministry of Finance estimates that closing duty-free shops in arrival areas at international airports will boost spending by foreign tourists by an additional 570 baht per person per trip.
Previously, the Thai cabinet had agreed to promote the Southeast Asian nation as a tourism and shopping hub. The Thai Ministry of Finance proposed several policies, including considering a tax reduction on alcoholic beverages, lifting the ban on alcohol sales between 2 pm and 5 pm, and relaxing the operating hours of nightlife venues.
Tourism is a major driver of the Thai economy, accounting for nearly 20% of its gross domestic product. In the first four months of this year, the number of foreign visitors has recovered to nearly 90% of the level seen in the same period of 2019, before the COVID-19 pandemic.
