Duty-free shutdown drama: Thai airports set to lose big bucks

[snoop1130]

 

Airports of Thailand (AOT) is bracing for a colossal monthly loss of 143 million baht after announcing the closure of all duty-free shops in the arrivals areas of five major airports. This shocking move, aimed at boosting domestic spending, was approved by the Cabinet on July 2 and will come into effect on August 1.

 

The closure affects duty-free shops at Suvarnabhumi, Don Mueang, Chiang Mai, Phuket, and Hat Yai airports. During a board meeting yesterday, AOT officials acknowledged the financial hit, revealing that the monthly revenue loss includes 1.7 million baht from rent and a staggering 142 million baht in minimum profit compensation.

 

King Power Duty-Free Ltd (KPD), a key player in the duty-free market, has already reached out to AOT to return 2,250 square metres of duty-free retail space across the affected airports. The handover will also begin tomorrow, August 1.

 

Despite the financial blow, AOT is exploring new projects to recover some of the lost income. The closure is part of a broader government strategy to funnel spending into local shops, with hopes of generating up to 350 billion baht annually.

 

The decision has sparked mixed reactions, with some praising the focus on domestic retail while others express concern over the economic fallout for the airport operator and duty-free vendors, reported The Nation.

 

By Puntid Tantivangphaisal

Photo courtesy of The Nation

 

Full story: The Thaiger 2024-07-31

 

 

-  Cigna offers a variety of health insurance plans designed to meet the minimum requirement for medical treatment coverage, with benefits reaching up to THB 3 million. These plans are tailored to provide comprehensive healthcare solutions for expatriates, ensuring peace of mind and access to quality medical services. To explore the full range of Cigna's expat health insurance options and find a plan that suits your needs, click here for more information.

 

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[Will B Good]

The argument being that arriving tourists will now have to buy these goods in Thai shops?

 

Surely once it is known they will buy in the departing airport and Thailand lose hands down???

[Big Bert]

I spend nothing In Thai airports. Check in and straight to the lounge. Duty free has always been a rip off

 

[Silencer]

I never knew arrivals had duty free (departures sure)....my goal is get from plane to immigration ASAP.

[richard_smith237]

1 hour ago, Big Bert said:

I spend nothing In Thai airports. Check in and straight to the lounge. Duty free has always been a rip off

 

I'm sure this incredibly valuable information will now make AOT and airport authorities world wide reconsider any decisions they make... 

 

 

 

 

[Big Bert]

29 minutes ago, richard_smith237 said:

 

I'm sure this incredibly valuable information will now make AOT and airport authorities world wide reconsider any decisions they make... 

 

 

 

 

I'm sure no one cares or will comment on your valuable contribution.

[richard_smith237]

5 minutes ago, Big Bert said:

34 minutes ago, richard_smith237 said:

 

I'm sure this incredibly valuable information will now make AOT and airport authorities world wide reconsider any decisions they make... 

 

I'm sure no one cares or will comment on your valuable contribution.

 

Seems you are becoming an expert on utterly pointless and useless comments...

 

.......

 

As contribution - the Watches at Bangkok duty free are priced competitively....

 

Recently - looking at one specific model - I have only seen it priced more competitively in Japan (and thats because of the ex rates) - Thailand duty free was cheaper than pretty much anywhere else I've looked from US, Europe, Singapore, HK... (all after tax / duty free pricing).

 

On the other hand - booze at Bangkok Duty free is often pricer than elsewhere, but obviously has a higher place value.

 

 

 

 

[Bday Prang]

2 hours ago, Big Bert said:

I spend nothing In Thai airports. Check in and straight to the lounge. Duty free has always been a rip off

 

It saves smokers a bit of money I only ever buy tobacco but due to import restrictions to the UK I can't (legally) take more than 250g back  ,I  never understood how something like chocolate specifically Toblerone is nearly 3 times the price that I pay for it   at a local convenience shop back in the UK  I guess some people get carried away with the whole flying experience

[daveAustin]

4 hours ago, richard_smith237 said:

 

I'm sure this incredibly valuable information will now make AOT and airport authorities world wide reconsider any decisions they make... 

 

They should take heed because many feel the same. Duty free here used to be okay but is now borderline extortionate. They are just glitzy shops with high prices, and the arrivals are/were a waste of time. This is why they are closing, because people don’t fall for it. If you want good prices, get duty free when leaving your home countries. For Brits, pre-booking Heathrow has great prices and all sealed. 

[bokningar]

Never found a good price in a Thai Duty free.

But I guess it is all about who is connected to who. As it always is in Thailand.

Who own King Power Duty-Free Ltd? No one connected to current government I'm sure.

 

[Ralf001]

31 minutes ago, bokningar said:

Never found a good price in a Thai Duty free.

But I guess it is all about who is connected to who. As it always is in Thailand.

Who own King Power Duty-Free Ltd? No one connected to current government I'm sure.

 

 

The owners father was good friends with P'Thaksin... but he been dead since 2018.

[hotchilli]

Thai duty free was over-priced.

[OneMoreFarang]

35 minutes ago, hotchilli said:

Thai duty free was over-priced.

is

[OneMoreFarang]

It seems some influential people want a higher commission... 

[Colabamumbai]

14 hours ago, snoop1130 said:

 

Airports of Thailand (AOT) is bracing for a colossal monthly loss of 143 million baht after announcing the closure of all duty-free shops in the arrivals areas of five major airports. This shocking move, aimed at boosting domestic spending, was approved by the Cabinet on July 2 and will come into effect on August 1.

 

The closure affects duty-free shops at Suvarnabhumi, Don Mueang, Chiang Mai, Phuket, and Hat Yai airports. During a board meeting yesterday, AOT officials acknowledged the financial hit, revealing that the monthly revenue loss includes 1.7 million baht from rent and a staggering 142 million baht in minimum profit compensation.

 

King Power Duty-Free Ltd (KPD), a key player in the duty-free market, has already reached out to AOT to return 2,250 square metres of duty-free retail space across the affected airports. The handover will also begin tomorrow, August 1.

 

Despite the financial blow, AOT is exploring new projects to recover some of the lost income. The closure is part of a broader government strategy to funnel spending into local shops, with hopes of generating up to 350 billion baht annually.

 

The decision has sparked mixed reactions, with some praising the focus on domestic retail while others express concern over the economic fallout for the airport operator and duty-free vendors, reported The Nation.

 

By Puntid Tantivangphaisal

Photo courtesy of The Nation

 

Full story: The Thaiger 2024-07-31

 

 

-  Cigna offers a variety of health insurance plans designed to meet the minimum requirement for medical treatment coverage, with benefits reaching up to THB 3 million. These plans are tailored to provide comprehensive healthcare solutions for expatriates, ensuring peace of mind and access to quality medical services. To explore the full range of Cigna's expat health insurance options and find a plan that suits your needs, click here for more information.

 

Get our Daily Newsletter - Click HERE to subscribe

Not shocking, money loser. 

[Dcheech]

143 million baht per month makes one wonder who the main users of the on arrival duty free were. Sounds like Kone Thai might be the real target of this, not international tourists most of whom never knew you could buy duty free on arrival.

 'it's a money loser' ... 'overpriced' ... yada yada yada.

Popular brands were no bargain; Johnnie Walker, Glenlivet, JackDaniels etc. However if you had something you like, less than popular, great deal. Say Meyers Rum for 500 B a liter at duty free arrival. Same price for over 15 years. Show them your onward flight ticket, even from Don Muang, they would wrap it, seal it, and you could carry it on domestic flight to your final destination. 

 


  

[hotchilli]

41 minutes ago, OneMoreFarang said:

It seems some influential people want a higher commission... 

That's how it works here, 

[PETERTHEEATER]

15 hours ago, snoop1130 said:

This shocking move

Shocking? It was published two weeks ago.

[StevieAus]

9 hours ago, Bday Prang said:

It saves smokers a bit of money I only ever buy tobacco but due to import restrictions to the UK I can't (legally) take more than 250g back  ,I  never understood how something like chocolate specifically Toblerone is nearly 3 times the price that I pay for it   at a local convenience shop back in the UK  I guess some people get carried away with the whole flying experience

That might be ok if you have been visiting the UK not every passenger arrives from that country.

Compare it with the price in Thailand for relevance.

[PETERTHEEATER]

12 hours ago, Big Bert said:

I spend nothing In Thai airports. Check in and straight to the lounge. Duty free has always been a rip off

 

Not just in Thailand. Once upon a time it could be cheaper but not anymore. They sell to captive shoppers many of whom are in holiday spirit.😀

[spidermike007]

Few items offered good value. Few will miss these shops. See ya. 

[KannikaP]

Surely it makes more sense to only sell Duty Free at the arrivals so that all that extra weight of inflammable liquids is not carried in the already overloaded overhead lockers (or hat racks as Emirates calls them). 

[KannikaP]

4 hours ago, bokningar said:

Never found a good price in a Thai Duty free.

But I guess it is all about who is connected to who. As it always is in Thailand.

Who own King Power Duty-Free Ltd? No one connected to current government I'm sure.

 

Wasn't the previous owner the boss of Leicester City FC and killed in helicopter crash a few years back?

[Peterphuket]

12 hours ago, Big Bert said:

I spend nothing In Thai airports. Check in and straight to the lounge. Duty free has always been a rip off

 

Here is another who has had the same experience, at many airports around the world, it is just the name but the prices are exorbitantly high.

[Peterphuket]

To cite an example, there is a whisky a 10 to 15 years ago named Mekhong, on the Thai market of reasonable quality and reasonably priced, cheaper than Hong Tong.
Then it was no longer available anywhere and a few years it came back in the duty-free shops at Thai airports, and you guessed it at double the price

[sandyf]

12 hours ago, Big Bert said:

I spend nothing In Thai airports. Check in and straight to the lounge. Duty free has always been a rip off

 

They are talking about the small duty free shop between baggage reclaim and the arrivals hall, you would be checking out, not checking in.

In all the flights I have had into Thailand never bought duty free on arrival, shop is usually empty so not surprised they are being closed.

[Will B Good]

1 minute ago, sandyf said:

between baggage reclaim and the arrivals hall

 

Never even noticed them.......I thought you just collected your luggage and then walked through the customs part and out?

 

Maybe too worried about customs nabbing me and slipping something into my suitcase...!!!

[sandyf]

12 minutes ago, Peterphuket said:

Then it was no longer available anywhere and a few years it came back in the duty-free shops at Thai airports, and you guessed it at double the price

Indeed, in recent years BKK has almost eliminated the sale of everyday brands of Scotch with only the more expensive on the shelf.

A few weeks back coming out of Gatwick I got 2 litres of Grouse Smokey Black for £24, nectar of the gods and about £6/litre cheaper than the supermarkets,

Duty free can have it's moments.

[jippytum]

I guess King Power airport concession  holders have fallen out with the present government 

[digbeth]

are the custom more lenient towards arrival duty free? ie. if you've already brought in booze and cigarettes from overseas to your personal limit, and a quick stop at king power before leaving with a couple more bags of johnny walker takes you over the limit would they catch you for it? 

 

I know they have collection counter for Thais that want to buy things for duty free price before they leave for holiday but don't want to carry the items out, say a Rolex for duty free price, leave for Japan for a couple of days and come back to pick it up from arrivals