webfact Posted September 4, 2018 Share Posted September 4, 2018 Greater transparency urged in airport duty-free concession By Kwanchai Rungfapaisarn The Nation Worawoot Ounjai, the new president of the Thai Retailers Association, outlines the association’s mission to promote shopping tourism in Thailand at a press conference yesterday. The government sector must ensure transparency and fairness in framing the terms of reference for the airport duty-free concession, which is due this year, the Thai Retailers Association (TRA) said yesterday. The TRA’s new president, Worawoot Ounjai, also said the association wanted to see an increase in the concession fee, which would boost the revenue of Airports of Thailand. Worawoot said that every country in Asean was attempting to stimulate the domestic retail market with tourism policies that pushed consumption. He pointed to Malaysia’s “Truly Asia” campaign as well as the “Wonderful Indonesia”, “It’s more fun in the Philippines” and “Vietnam Timeless Charm” campaigns. This resulted in retail growth of between 8 and 12 per cent in those countries, while “Amazing Thailand” was able to achieve only 3.8 per cent growth. If the state sector wishes to stimulate sustainable growth in the economy, there should be measures to support tourist spending and increase the competitive potential by drawing tourists from around the world to visit Thailand. There must be a strategy to make Thailand a destination for both tourism and shopping, he said. “Generally, many duty-free operators around the world pay between 35 to 40 per cent as concession fee, while in Thailand, the concession fees for the airport duty free are at only between 15 per cent and 19 per cent. We would like the concession fee to be about 30 per cent or more,” said Worawoot. Worawoot had earlier in the year called for a study of appropriate methods for granting duty-free concessions in Thailand to make the process transparent, efficient and of greatest benefit to the state and the people. He said Thailand had a great opportunity to pump up its income from tourist retail – a Bt270-billion increase in revenue per year would boost the government’s coffers by Bt32 billion per year. Worawoot said as the new TRA president he would continue the policy of the previous board of promoting Thailand as a shopping paradise. He called for many important measures by the government, especially on VAT refund for tourists. “We currently have VAT-free stores, but they are not full-fledged. Retail stores in Thailand have been defined as stores offering VAT Refunds for Tourists, for which consumers must submit documents to request a VAT refund at a service counter at the airport. When they get the refund, most tourists do not spend much at the airport, as they only have a little shopping time left. “If we wish to make it convenient for tourists to shop, we could specify that participating stores be VAT-free shops, by specifying stores to sell products whose price excludes VAT. If the sale price includes VAT, tourists should be able to request an immediate refund on the day of purchase at the point of sale,” he said. “The government sector must promote free operation of downtown duty- and tax-free shops, especially in provinces with high tourism potential. They should allow tourists to shop in these stores and show just the documents according to the regulations of the Customs Department at a counter in the airport, just as in many countries in Europe,” he said. Incentives for tourists to visit and shop in Thailand could make Thailand a destination on par with Hong Kong or Singapore, he added. At present, the consumer retail market in Thailand is worth about Bt3.6 trillion as of 2017 or about US$1 billion – modern chain stores account for 32 per cent of the consumer retail value; upcountry retailers account for 12 to 15 per cent of retail consumption; and mom and pop grocery stores account for 53 to 55 per cent. Source: http://www.nationmultimedia.com/detail/Corporate/30353737 -- © Copyright The Nation 2018-09-05 Link to comment Share on other sites More sharing options...
Popular Post bheard Posted September 4, 2018 Popular Post Share Posted September 4, 2018 Good luck with that. The granting of duty free concessions would appear to be a totally opaque, just like the brown envelopes used as part of the process. Sent from my H4133 using Thailand Forum - Thaivisa mobile app 6 Link to comment Share on other sites More sharing options...
Popular Post ezzra Posted September 4, 2018 Popular Post Share Posted September 4, 2018 Anyone who still think and shop at the airport's 'duty free' shop is being ripped off as most items sold there are either same price or more expensive than regular shops, 'duty free' is nothing but a myth perpetrated on the gullibles.... 7 11 Link to comment Share on other sites More sharing options...
Squigy Posted September 4, 2018 Share Posted September 4, 2018 Just look at the lifestyle of the owners of KP.. That should tell you how much they are making on this so called "Duty Free" deal at Thai airports.... Cheaper to buy the real goods outside of the airport and seriously the goods they stock are totally out of date... Cannot buy the BK Post airside... Link to comment Share on other sites More sharing options...
Popular Post JAG Posted September 5, 2018 Popular Post Share Posted September 5, 2018 (edited) Transparency in allocating duty free concessions? The process already is. The most casual observer will know that the concession goes to those who make the most "influential" contributions, to the most "influential" people. Pretty transparent really. Edited September 5, 2018 by JAG 5 2 Link to comment Share on other sites More sharing options...
Popular Post Artisi Posted September 5, 2018 Popular Post Share Posted September 5, 2018 When have brown paper bags ever been transparent? 2 1 Link to comment Share on other sites More sharing options...
Popular Post Misterwhisper Posted September 5, 2018 Popular Post Share Posted September 5, 2018 For the sake of greater transparency - at least as far as passengers are concerned - it also might help if each outlet in the duty free areas of Thai airports are required to carry a suffix that names the actual operator/owner. It will be an eye opener for many: Beauty Products and Perfumes (operated by King Power) Snacks and Beverages (operated by King Power) Books and Newspapers (operated by King Power) Booze and Cigarettes (operated by King Power) Gifts and Souvenirs (operated by King Power) Electronics (operated by King Power) Benetton (operated by King Power) Tiffany's (operated by King Power) Cartier (operated by King Power) Rolex (operated by King Power) etc. etc. 4 2 1 Link to comment Share on other sites More sharing options...
Popular Post DrTuner Posted September 5, 2018 Popular Post Share Posted September 5, 2018 KP, the airport duty-free where goods are more expensive than the fully taxed ones outside the airport. Can't get me there even at gun point. 3 Link to comment Share on other sites More sharing options...
natway09 Posted September 5, 2018 Share Posted September 5, 2018 This must be the Joke of the Day 1 Link to comment Share on other sites More sharing options...
Darcula Posted September 5, 2018 Share Posted September 5, 2018 (edited) 14 hours ago, webfact said: make Thailand a destination on par with Hong Kong or Singapore Not going to happen unless a meteor strikes HK and Singapore at the same time. Edited September 5, 2018 by Darcula 1 Link to comment Share on other sites More sharing options...
wgdanson Posted September 5, 2018 Share Posted September 5, 2018 It is similar at LHR. Dixons is more expensive than on the high street. DUTY FREE does not mean PROFIT FREE. Link to comment Share on other sites More sharing options...
bumpkin Posted September 5, 2018 Share Posted September 5, 2018 All retail is in business to make money. Buy what you need, not what you want. Caveat emptor. Link to comment Share on other sites More sharing options...
pieeyed Posted September 5, 2018 Share Posted September 5, 2018 All you need to know is who owns King Power Duty Free. There lies all the answers. 1 Link to comment Share on other sites More sharing options...
pieeyed Posted September 5, 2018 Share Posted September 5, 2018 The company has only paying 3% of the taxes of 15% on their profit. Bloody legalized mafia. 1 Link to comment Share on other sites More sharing options...
pieeyed Posted September 5, 2018 Share Posted September 5, 2018 Instead of paying the 15% they should be paying they have only been paying 3% is what I meant to post. Link to comment Share on other sites More sharing options...
CanuckThai Posted September 5, 2018 Share Posted September 5, 2018 Can you imagine their margins?? Phenomenal....absolute robbery, but phenomenal. 1 Link to comment Share on other sites More sharing options...
Sir Dude Posted September 5, 2018 Share Posted September 5, 2018 "Greater transparency...." , stopped reading right there. Link to comment Share on other sites More sharing options...
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