Report Thailand Faces Uphill Battle Against China's Tax-Free Shopping

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Thailand's tourism sector sounds the alarm as China lures tourists with enticing tax-free shopping incentives. With a 13% refund rate now in effect, China aims to boost tourist spending through instant tax refunds, a move Thai tourism operators say Thailand should emulate to maintain its competitive edge.

 

Adith Chairattananon of the Association of Thai Travel Agents suggests that Thailand should adopt an instant tax refund system to encourage higher tourist spending. Since the start of the year, China's progressive tourism policy, which features instant tax refunds and extended visa-free transit for 54 countries, has made a significant impact.

 

Japan, another major competitor, currently holds the position as Asia's top destination for Chinese tourists. Their adoption of tax-free incentives has resulted in a 219% surge in tax-free spending this March compared to 2019. This boom highlights the potential for growth that Thailand risks missing out on.

 

 

 

Thapanee Kiatphaibool from the Tourism Authority of Thailand acknowledged the importance of tax-free shopping in easing travel, a policy discussed since 2024. While China sets the benchmark in driving tourist expenditure, the Thai government, particularly the Finance Ministry, is examining such a scheme.

 

The consensus is clear: as China emerges as a formidable rival on the global tourism stage, it is imperative for Thai authorities to unite and tackle these challenges head-on. Adith warns that relying on attractions such as casinos, seen in Vietnam, will not suffice; instead, they must focus on robust infrastructure enhancements to sustain tourism growth.

 

In conclusion, Thailand must match or exceed the enticements offered by its neighbours to remain a preferred destination for international tourists. Without implementing similar tax incentives, Thailand could see its appeal wane, struggling to keep pace with regional tourism frontrunners like China and Japan.

 

  Adapted by ASEAN Now from Bangkok Post 2025-04-29

 

 

[ChrisY1]

I've purchased swimming pool equipment and tooling several times from China.....everything is usually more than half the price locally....costs always include door to door and all fees, 

Thais will always have trouble competing...greed for big profits prevail with little understanding maybe, of turnover.....FTAs with China are good for Thai people.