Thailand is all set to enhance tourist spending on domestic goods by closing its inbound duty-free shops at eight international airports.
In a strategic move aimed at boosting tourist spending within the country, Thailand is set to close duty-free shopping facilities in the arrival sections of its international airports. This decision encompasses eight key airports: Suvarnabhumi, Don Mueang, Phuket, Krabi, Samui, Chiang Mai, Hat Yai, and U-tapao. The initiative aims to redirect tourists towards local markets and shopping malls, promoting economic circulation within Thailand. While a definitive timeline for the implementation has not been specified, the Thai government is moving forward with plans to reshape the tourist shopping experience upon arrival.
Thailand’s Closure of Inbound Duty-Free Shops: What You Need to Know
Thailand’s decision to shut down inbound duty-free businesses at its major international airports is expected to spur an estimated THB 3.5 billion increase in local retail spending annually. Rudklao Intawong Suwankiri, deputy spokesperson for the Thai Government, confirmed that cabinet ministers have endorsed guidelines aimed at positioning Thailand as a leading tourism and shopping destination in Asia. This initiative, proposed by the Ministry of Finance, also involves eliminating tax benefits for bonded warehouses associated with inbound duty-free shops. All three operators currently managing duty-free operations at the eight designated airports have committed to halting their activities upon government directive.
Suwankiri emphasized that purchases made at inbound duty-free shops in Thailand’s international airports divert potential spending away from local shops and markets. The Ministry of Finance anticipates a rise in tourist expenditure, projecting an increase of THB 570 (INR 1,300) per person per trip following the closure of these duty-free outlets.
Thailand, a prominent destination in Southeast Asia, is intensifying efforts to solidify its status as a premier travel and shopping hub in the region. Initiatives range from extending visa-free privileges to abolishing tourist fees. Top attractions in Thailand span from the cosmopolitan allure of Bangkok to natural wonders such as the Phi Phi Islands, James Bond Island, Pattaya, Phuket, Krabi, and Koh Samui, drawing visitors from around the globe.
