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

[webfact]

File photo

 

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.

[Emdog]

I've never used Thai VAT refunds for tourists, but isn't that similar... the distinction being "instant" compared to "get yr cash when you leave the country"?

Seems "instant" would lead to all sorts of fraud: You, a tourist, approached by regular Chinese citizen whom I assume pays some sort of sales tax. He offers to give you half of what tax would be if you go in and buy xyz for him. You get instant commission, he gets half off on tax....

 

[Jack Hammer]

58 minutes ago, Emdog said:

I've never used Thai VAT refunds for tourists, but isn't that similar... the distinction being "instant" compared to "get yr cash when you leave the country"?

Seems "instant" would lead to all sorts of fraud: You, a tourist, approached by regular Chinese citizen whom I assume pays some sort of sales tax. He offers to give you half of what tax would be if you go in and buy xyz for him. You get instant commission, he gets half off on tax....

 

Maybe that scenario would work in Thailand, but not in China

[ignore it]

Note to TAT, 

 

Duty free ain't  tax free.  Tell King Power.

[hotchilli]

Give money back..... you gotta be joking

[factual monk]

Malaysia, China and Vietnam... are making tourists footfalls low into Thailand. 

[jcmj]

They have already lost their appeal to many tourists due to many different factors. I’m not going to list them but they know what they are and need to resolve those issues before they even try to get back some of the tourists. They have been in this game a long time and many years without competition. Now Thailand is losing to rivals on all sides offering new experiences and opportunities. Time to clean up the mess and when you get your ducks in a row you can try again. 

[Caldera]

Now the sky is really falling. 

[bkk_mike]

Japan is getting rid of their instant tax rebates and switching back to having to get the tax back at the airport.

That would suggest there has been some fraud. Presumably either individuals approaching tourists to buy something tax-free, or shops using the tax free forms with locals rather than just with tourists.