Thai Government to Close Duty-Free Arrival Stores After Losing 3 Billion Baht

[snoop1130]

 

The Thai government is set to close duty-free shops at eight airports across Thailand due to an estimated loss of 3 billion baht in customs revenue. This is part of a strategy to make Thailand a renowned tourist and shopping destination.

 

Ratchada Thanadirek, the deputy spokesperson for the Prime Minister's Office, announced the decision during a press conference after a Cabinet meeting. The proposal to close the duty-free stores was initially discussed at a Cabinet meeting in November last year.

 

The Ministry of Finance was tasked with studying the potential impacts of the decision. It found out that the move would likely increase spending by foreign tourists and spread income more evenly. Each foreign tourist is projected to spend an extra 570 baht per person yearly should the duty-free shops close.

 

However, the report suggested that Thai tourists might seek duty-free goods from other countries. Duty-free businesses would also lose out due to the closure, though other tourism-related businesses would benefit, potentially gaining an extra 3,460 baht per year.

 

 

The wider distribution of money to other businesses would likely increase government tax collection, specifically income tax and VAT. Furthermore, shutting down the duty-free shops could boost the country's GDP by 0.012% annually.

 

Three businesses operate duty-free shops at eight airports, namely Suvarnabhumi, Don Mueang, Chiang Mai, Phuket, Hat Yai, U-Tapao, Samui, and Krabi. Last year, these shops sold goods worth roughly 3 billion baht.

 

Ratchada said that all three duty-free businesses agreed with the decision and are ready to shut down their operations in line with the government's measures. However, the exact date when this cancellation is to be implemented is yet to be revealed.

 

File photo for reference only

 

-- 2024-07-02

 

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[Chris Daley]

No more Toblerones and little pink bears for me.

[hotchilli]

12 hours ago, snoop1130 said:

The Thai government is set to close duty-free shops at eight airports across Thailand due to an estimated loss of 3 billion baht in customs revenue. This is part of a strategy to make Thailand a renowned tourist and shopping destination.

By closing stores?

[sherwood]

Not very smart reasoning but then again tit.

[ezzra]

38 minutes ago, hotchilli said:

By closing stores?

I'm too trying to get my head around the resional of closing stores in order to save money, so what now? Thailand will

not have duty free shops anymore?...

[dinga]

Nonsense - complete nonsense.  Will never happen

[freeworld]

23 minutes ago, sherwood said:

Not very smart reasoning but then again tit.

Why not? If it is not profitable then they should close it down. Nothing wrong with them assuming that arriving passengers will use that money in the wider economy inside Thailand.

 

Anyway, always noticed hardly anyone buying stuff in the arrival duty free.

[J Branche]

I seen a couple of videos, the one guy in I believe Prague compared prices between the grocery store and Duty Free and Duty Free was always More expensive.

 

Might be isolated comparison but the thought of lugging a glass bottle around while traveling hoping not to break it is Not high on my list for adventure.

[hotchilli]

34 minutes ago, ezzra said:

I'm too trying to get my head around the resional of closing stores in order to save money, so what now? Thailand will

not have duty free shops anymore?...

Maybe the duty free prices were just too much.... but then again aren't they always located airside in departures, or does Thailand also have arrivals duty free shops?

Not sure how closing them will spread tourists money more widely?

They've already bought what they want during the holiday at cheaper outlets.

Not sure how the Thai suppliers to duty free shops will take this loss in revenue?

[ChrisY1]

I never buy anything from airport "duty free".....many products and costlier than outside.

However, KingPower will be really pissed and will no doubt cause a stir.

Anyway....this is a completely inane idea...totally stupid!

[Drumbuie]

In a year, the duty free shops allegedly sold goods worth 3 billion baht.

 

The duty on those goods would have been less than 3 billion even if they were all luxury items with 30% duty plus 7% VAT. 

 

Are there no actual journalists left? 

[thesetat2013]

16 minutes ago, hotchilli said:

Maybe the duty free prices were just too much.... but then again aren't they always located airside in departures, or does Thailand also have arrivals duty free shops?

Not sure how closing them will spread tourists money more widely?

They've already bought what they want during the holiday at cheaper outlets.

Not sure how the Thai suppliers to duty free shops will take this loss in revenue?

I think they assume that if the passenger can not get it cheap at a duty-free store. Then they will pay outrageous prices in one of the bigger cities at a retail outlet. 

Given that tourism only recently began to boom. I do not see why the duty-free stores don't wait it out to begin showing profits again. Covid and international travel must have hurt their businesses quite alot and it will take time to recover from years of bad air traffic. 

 

[Gsxrnz]

I thought bragging to your mates that you bought something duty-free died in the early 90's.

 

Nowadays only virgin (not the airline, but in the Biblical sense) flyers are intoxicated by the bright lights of the glitzy brand name shops and are happy to be parted from their money. 

 

Coincidentally, virgin flyers also enjoy airline food.

[Kiwirod]

Thai Duty-Free shops have always been a lot more expensive than elsewhere anyway !!!!!!

[lordgrinz]

1 hour ago, ezzra said:

I'm too trying to get my head around the resional of closing stores in order to save money, so what now? Thailand will

not have duty free shops anymore?...

 

Maybe if they hand out free airline tickets they can save money too 

[daveAustin]

Even as a tourist, Never had the time or inclination to mooch around those stores on arrival. Just get your stamp and bag and get out of there. Guess it might appeal to dry countries. Going out, bar cigs for people, just get ‘home’ and buy same price or cheaper. Duty free, my A!

[JimHuaHin]

Stopped buying at Thai duty-free shops last century - always cheaper to buy at duty-free shops in Australia.

[ChaiyaTH]

All thanks to greed, nothing less or more. If they actually sold the booze and cigs for significant less, or nice parfums etc, I'd been in the market at least a dozen times over the years, if not every time for a box of cigs. Yet they still don't get it somehow, hence it is closed.....

 

Sometimes it makes me think the matrix is real and someone is mind<deleted>ing me all day long. Repeatedly. I mean you would think that one of the thousands of employees in that free duty alone, would maybe travel around the world or continent, to compare prices, to start with, at least....

[PETERTHEEATER]

Passengers arriving after long flights often bring articles bought from their departing aiport Duty Free. They have no interest in browsing Arrival Duty Free they just want to get to their final local destination and relax.

Of course, King Power will continue to run Departure Duty Free, that's whete the sales are profitable.

[Thingamabob]

Yet another farce created by the Ministry of Finance. They'll be proposing a tax on foreign incomes and on inward remittances next....

[Dogmatix]

I used to buy wine at these King Power shops until I found I could buy the same wine cheaper at Villa Market. 

[Deez]

Must be the only duty free store in history to lose money.  Corruption lives large.

[thecyclist]

5 hours ago, freeworld said:

Why not? If it is not profitable then they should close it down. Nothing wrong with them assuming that arriving passengers will use that money in the wider economy inside Thailand.

 

Anyway, always noticed hardly anyone buying stuff in the arrival duty free.

Exactly, if they close it's because they are not selling anything. I only buy there when I arrive on an alcohol free day or after midnight. Don't want to go without a few drinks after a stressful flight.

The booze there is just a few Baht cheaper than outside anyway. 

[RichardColeman]

18 hours ago, snoop1130 said:

It found out that the move would likely increase spending by foreign tourists and spread income more evenly. Each foreign tourist is projected to spend an extra 570 baht per person yearly should the duty-free shops close.

Can anyone explain then how the drinks industry - or tourism revenue - will benefit if tourists cannot buy it in duty-free and be banned from entering departures with it if bought elsewhere ? Get rid of the stupid fluid on a plane nonsense and you may have something

[Georgealbert]

18 minutes ago, RichardColeman said:

Can anyone explain then how the drinks industry - or tourism revenue - will benefit if tourists cannot buy it in duty-free and be banned from entering departures with it if bought elsewhere? Get rid of the stupid fluid on a nonsense plane and you may have something

Think you missed the headlines, “Thai Government to Close Duty-Free Arrival Stores After Losing 3 Billion Baht”, this is only the shops in arrivals not departures.

[LennyW]

I have probably had around 140 entries to Thailand through Swampy since it opened, and i cant actually recall seeing duty free on arrival stores, through immigration, grab my bag and out the door!!

[khunPer]

If they lose money, it makes sense to close the arrival duty free shops, but tourists planning to buy the stuff on arrival, might be disappointed, if they don't know id advance that they shall shop their duty free before departure. However, the difference might not be that huge, many products are quite expensive in the duty free shops. I remember when I was comparing Thai spirits in BKKs duty free store with prices in domestic 7-Elevens, the latter was about half price...

[Sydebolle]

Did King Power not pay up this time? 

[crazykopite]

Most people have purchased there duty free before they arrive in Thailand I would have though when they are departing Thailand is when they would use it .you could reduce the debt by stricter control over stock if you have 3 billion in stock over all the duty free shops your not in debt as it’s part of your unsold stock 

[Photoguy21]

Probably save money by buying any items outside of the airports.