King Power not happy with talk of abolishing duty-free on arrival

[webfact]

The government’s proposal to abolish duty-free on arrival at Thailand’s airports has met with a lukewarm reception from Airports of Thailand.

 

The airports operator says removing duty-free shops on arrival would significantly impact the revenue it currently shares with King Power, Thailand’s largest duty-free retailer. King Power aren’t happy either.

 

PM Srettha Thavisin’s administration is introduce a host of measures aimed at boosting the economy and international tourism. Among the ideas being considered is a Finance Ministry proposal to turn Thailand into a “duty-free paradise”.

 

By Peter Roche

PHOTO: Flickr/Peter Robertson

 

Full story: PhuketGO 2023-12-01

 

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[mokwit]

8 minutes ago, webfact said:

King Power aren’t happy either.

Good to hear.

[billd766]

Companies with monopolies NEVER like competition.

 

quote from the OP. "The airports operator says removing duty-free shops on arrival would significantly impact the revenue it currently shares with King Power".

 

Why are they concerned? They will still get rental from the companies who replace King Power. The brown envelopes may not be so full, but times are hard everywhere nowadays.

 

It would be great for the consumers, if ALL the monopolies and the huge companies were broken up and banned by law.

[JoePai]

Only goes to show how much money there is to be made in so called "duty-free"

[Guderian]

2 hours ago, webfact said:

Among the ideas being considered is a Finance Ministry proposal to turn Thailand into a “duty-free paradise”.

 

That sounded promising until I read on a bit... it sounds like it'll just end up another glorified VAT refund scheme for tourists when they fly home. And there was silly old me hoping to see the import duty on foreign wine slashed. No such luck.

[Aussie999]

Do, as I do... do not by any "duty" free.... it's a scam.

 

[gargamon]

Get rid of King power. On a recent trip from Canada I purchased a bottle of Glenlivet at duty free in Taiwan for $32. The exact same bottle, same size, in BKK from king power was over 3000 baht(>$100). That's about the same price as the normal liquor stores. 

Edited December 1, 2023 by gargamon

[richard_smith237]

36 minutes ago, gargamon said:

Get rid of King power. On a recent trip from Canada I purchased a bottle of Glenlivet at duty free in Taiwan for $32. The exact same bottle, same size, in BKK from king power was over 3000 baht(>$100). That's about the same price as the normal liquor stores. 

 

Agreed... King Power Duty Free in Bangkok is a rip-off...  the result of no corruption and no competition. 

 

$32 was a good price for Glenlivet...  was it this one ??? 

 

Whenever going back to the UK... I buy online...  its usually always cheaper than any duty free.

 

(Amazon UK).

 

 

 

 

 

 

 

[mokwit]

3 hours ago, webfact said:

Among the ideas being considered is a Finance Ministry proposal to turn Thailand into a “duty-free paradise”.

Surely he meant get rid of Duty Free parasites?

[gargamon]

1 hour ago, richard_smith237 said:

 

Agreed... King Power Duty Free in Bangkok is a rip-off...  the result of no corruption and no competition. 

 

$32 was a good price for Glenlivet...  was it this one ??? 

 

Whenever going back to the UK... I buy online...  its usually always cheaper than any duty free.

 

(Amazon UK).

 

 

 

 

 

 

 

Founder's Reserve, which you posted a pic of, is 2100 baht at BKK King power. The one I purchased in Taiwan for $32 USD is Distiller's Reserve. All 1 liter bottles. 

[herfiehandbag]

If King Power are not happy it will not happen.

[khunPer]

Looked purely from a CO2-climate change point-of-view, tax free sales should always be on arrival. If the 360 passengers on a wide body jet in average each carry 1 extra kg of duty free on the trip, the cost in fuel is the same as 4 average "stand weight" (90kg) passengers with luggage...

[Mr Meeseeks]

3 hours ago, gargamon said:

Get rid of King power. On a recent trip from Canada I purchased a bottle of Glenlivet at duty free in Taiwan for $32. The exact same bottle, same size, in BKK from king power was over 3000 baht(>$100). That's about the same price as the normal liquor stores. 

 

Any luxury goods including liquor will probably be much more expensive in Thailand that anywhere else. 

[josephbloggs]

6 hours ago, billd766 said:

quote from the OP. "The airports operator says removing duty-free shops on arrival would significantly impact the revenue it currently shares with King Power".

 

Why are they concerned? They will still get rental from the companies who replace King Power. The brown envelopes may not be so full, but times are hard everywhere nowadays.

 

Eh? If you remove all duty free on arrival that is a huge loss of revenue for everyone. What do you think they will replace them with? Rows and rows of cake shops? When most people land their main objective is to get out of the airport as quickly as possible. Duty free is tempting, nothing else would be, and we're talking a lot of retail space to replace - it is a ridiculous idea.

I am no fan of KP and think giving one company exclusivity for ALL retail and commercial space in the airport was a stupid thing to do. But this story has nothing to do with that, or corruption, or the legendary AN, tedious "brown envelopes". But I do understand many posters here don't feel complete unless they've trotted out at least one cliche per day, so glad you got your fix. And do revenue sharing agreements really get paid in brown envelopes?

[KhunLA]

I hope so, people would save a lot of money IMHO 

[hotchilli]

King Power is, has been and always be a rip-off.

[Scouse123]

Whenever I have looked at duty-free shops in Thailand and the UK, buying in the high street or online always seems cheaper.

 

I see no advantage in spirits, wines, or perfumes at duty-free shops.

[RobU]

11 hours ago, josephbloggs said:

 

Eh? If you remove all duty free on arrival that is a huge loss of revenue for everyone. What do you think they will replace them with? Rows and rows of cake shops? When most people land their main objective is to get out of the airport as quickly as possible. Duty free is tempting, nothing else would be, and we're talking a lot of retail space to replace - it is a ridiculous idea.

I am no fan of KP and think giving one company exclusivity for ALL retail and commercial space in the airport was a stupid thing to do. But this story has nothing to do with that, or corruption, or the legendary AN, tedious "brown envelopes". But I do understand many posters here don't feel complete unless they've trotted out at least one cliche per day, so glad you got your fix. And do revenue sharing agreements really get paid in brown envelopes?

I don't buy duty free l. I presume it means VAT and alcohol tax free. Carry on selling it but with all the taxes added. The sales may drop but those people desperate for alcohol on arrival will still buy it since the price should be no different to the retail shops in Thailand 

[Skipalongcassidy]

When "duty free" prices are higher than everyday "vat included" prices someone is scamming the system... typical Thailand... they think that everyone is stupid and are right most of the time... that's the sad part.

[mikebell]

1 hour ago, hotchilli said:

King Power is, has been and always be a rip-off.

They used to have a nice little side-line in shop-lifting accusations an hour before your flight was due to take off.  An English-speaking lawyer was provided to handle negotiations.

[Scouse123]

15 minutes ago, mikebell said:

They used to have a nice little side-line in shop-lifting accusations an hour before your flight was due to take off.  An English-speaking lawyer was provided to handle negotiations.

 

I recall those days when a person just stood over a boundary line while browsing and was instantly accused of shoplifting.

[Deez]

Boo Hoo. The Duty Free Monopoly is not happy.

[RobU]

1 hour ago, Skipalongcassidy said:

When "duty free" prices are higher than everyday "vat included" prices someone is scamming the system... typical Thailand... they think that everyone is stupid and are right most of the time... that's the sad part.

First time visitors don't know that the prices are higher since 'duty free' in any other country means cheaper. Scamming first time visitors 

[hotchilli]

10 minutes ago, RobU said:

First time visitors don't know that the prices are higher since 'duty free' in any other country means cheaper. Scamming first time visitors 

Green horns in Thailand are easy prey..

[Nickcage49]

How stupid. But this country continually shoots itself in the foot.

[Bangkok Barry]

18 hours ago, JoePai said:

Only goes to show how much money there is to be made in so called "duty-free"

 

Helps you buy football clubs (Leicester City plus Leuven in Belgium), own a five-star hotel and construct one of the tallest and most iconic buildings in Bangkok.

Edited December 2, 2023 by Bangkok Barry

[it is what it is]

18 hours ago, JoePai said:

Only goes to show how much money there is to be made in so called "duty-free"

 

obviously. duty is simply the tax, nothing to do with other mark ups in price/profit margins

[Sydebolle]

Well, so the King(dom) of Power(buying) comes to an end after 17 years in operation. During those 17 years they could enjoy a monopoly (like other retail business in this country), billions of Baht changed accounts and piggy banks and now they are "not happy"? 

Their unhappiness might be rooted in the fact, that the horn of plenty is not so plenty anymore after all these years - who knows. I - for one - never bought anything there as some prices were even more expensive than "duty paid" in town - luxury consumer goods like watches sprang to mind ....... 

It will allow now for ample additions of toilets; that was a real issue when Swampy opened in 2006 when they had more duty free outlet and space than toilets which were more than few and far between. Still better though than Santa Cruz International Airport of Bombay some 40+ years ago, where the toilets got forgotten all together which resulted in a delayed opening to add those private areas where one could "powder the nose"! 

Mysterious are the ways of the East! 

[kennw]

16 hours ago, herfiehandbag said:

If King Power are not happy it will not happen.

Agreed, research the "power" behind King Power, TIT

[klauskunkel]

King Power Wikipedia snippets:

 

 

In 2004, the government of Thaksin Shinawatra granted King Power the right to operate duty-free shops at Suvarnabhumi, Bangkok's new main airport, for 10 years. Shortly thereafter, the company won the concession to operate duty-free shops at four major provincial airports until 2015. There was no bidding for the concessions.

Six years later King Power Group's Owner Vichai Srivaddhanaprabha had made enough money to buy  Leicester City F.C. as a hobby.

 

In 2017, King Power was accused of failing to pay the Thai state 14 billion baht (£327 million) from the operation of their airport duty-free shop monopoly. The lawsuit was filed by a deputy chairman of a government anti-corruption subcommittee. Two other King Power group companies owned by the Srivaddhanaprabha family were also accused of corruption in the legal action, along with a senior King Power executive. Fourteen officials working for Airports of Thailand PCL (AOT) have also been named in the suit. 

The Central Criminal Court for Corruption and Misconduct Cases dismissed the case on 18 September 2018, ruling that the plaintiff "was not an affected party, therefore he cannot sue in this case."

 

King Power's "cash cow" is its duty-free business which operates as a government-sanctioned monopoly. Over the years, King Power has been very close to the Thaksin, Abhisit, and Yingluck governments. It has also been a supporter of post-coup governments of Sonthi Boonyaratglin and more recently, Prayut Chan-o-cha.

In January 2019, it was revealed that King Power was among the donors at the pro-junta Phalang Pracharat Party's 600 million baht dinner fundraiser.

 

 

Quote

King Power not happy with talk of abolishing duty-free on arrival

Given their track record there will be no abolishment of their monopoly, instead there will be a donation to the Srettha government.