Thailand is spicing things up for international travellers. The Thai government has announced the country will close duty-free shops at international airport arrival areas to boost spending throughout the Southeast Asian nation.
While no commencement date has been set, the government believes the move will result in an extra 3.5 billion baht (more than AU$140 million) a year for Thailand – equal to approximately 570 baht spent per person per trip.
According to the Bangkok Post, the affected duty-free shops raked in about 3.02 billion baht (around AU$123 million). But the government thinks more money can be spent outside the airport.
The decision affects eight major airports, including Bangkok’s Suvarnabhumi and Don Mueang, as well as other busy hubs like Chiang Mai, Phuket, Hat Yai, Rayong, Samui and Krabi, the Post reported.
The three operators of inbound duty-free businesses have agreed to suspend operations at the airports, aligning with the government’s policy to boost spending in domestic stores, according to government spokesperson Rudklao Intawong Suwankiri.
The shops being closed could redirect significant spending towards local markets, the government believes, benefiting the retail sector and tourism industry.
Under the current rules, travellers can buy duty-free items like personal or professional goods up to 20,000 baht, 200 cigarettes and one litre of alcohol.
So, next time you land in Thailand, be prepared to shop more locally.
Tourism outlook
The World Bank predicts that over 36 million visitors will arrive in Thailand in 2024, CNA reported.
From January to mid-April, around 10.7 million tourists travelled to the country, led by over two million visitors from China, followed by Malaysia, Russia, South Korea and India. Australia is also among its top 10 source markets.
Tourism is a big deal for Thailand, making up about 20 per cent of its economy before COVID-19.
In June, in a tourism turnaround, Thailand announced it would scrap its proposed tourist tax. Instead, the Tourism Authority of Thailand (TAT) is targeting luxury travellers through a newly launched marketing campaign focused on meaningful experiences and extended visas.
TAT welcomed a global contingent of 425-plus buyers, including 21 Aussie and Kiwi travel trade and media, to its recent annual Thailand Travel Mart Plus (TTM+ 2024) trade networking event at JW Marriott Khao Lak in Phang Nga.
