Thai Transport Minister pushes for establishing more duty free shops

[webfact]

Transport Minister pushes for establishing more duty free shops



BANGKOK, 19 Jan 2015, (NNT) - In light of the Transport Minister's plan to do away with monopoly in the nation's duty free market-- bringing King Power International Group's control over the industry to an end-- several foreign and domestic companies have expressed interest in setting up their duty-free shops in Thailand, says Transport Minister Air Chief Marshal Prajin Janthong.

According to the ACM, the plan will lead to the opening of several more duty free shops in Thailand's major cities, which will serve as goods distribution hubs at airports; corresponding to the country's’s plan to establish free trade in the ASEAN region.

The Minister said that South Korea’s duty free giant ‘Lotte’ approached the officials last week, inquiring about possible opportunities in Thailand.

He said the plan was viable as the monopoly contract with King Power would end in 4 years' time for the shop in Suvarnabhumi International Airport, and 7 years for the one in Don Muang International Airport.

For the time being, ACM Prajin has assigned the Airport of Thailand and related agencies to study the possibility of having more of duty free shops set up in airports in Thailand. One of the approaches he has come up with is having these franchises set up in residential areas and pick up their goods at the airports.

In addition to South Korea's Lotte, Minister ACM Prajin said, Hong Kong-based DFS Group and Thai-owned Central Group have also expressed interests in setting up their duty free shops.

-- NNT 2015-01-19

[smutcakes]

Increased competition is a great idea, so i fully support this.

Now lets make the rest of the market more open, so the CP's, Centrals, Siam Piwats, Emporium's of this world have some competition.

[Costas2008]

Another example of this government, braking the status quo of the control of certain companies and individuals in this country.

One more step to the right direction..........many more to come.

[Valentine]

It is about time King Power had some competition but I am astonished they still have 4 & 7 years left as a monopoly. I guess that is why they are overpriced. Not sure about now but it used to be you could buy the same product for less at a retail shop downtown.

[starky]

bringing King Power International Group's control over the industry to an end-- He said the plan was viable as the monopoly contract with King Power would end in 4 years' time for the shop in Suvarnabhumi International Airport, and 7 years for the one in Don Muang International Airport.

[chooka]

Increased competition is a great idea, so i fully support this.

Now lets make the rest of the market more open, so the CP's, Centrals, Siam Piwats, Emporium's of this world have some competition.

Can they charge you with hate talk for that comment?

[Sviss Geez]

Increased competition is a great idea, so i fully support this.

Now lets make the rest of the market more open, so the CP's, Centrals, Siam Piwats, Emporium's of this world have some competition.

Why do you state that CP, Central, Siam Piwat and Emporium don't have any competition? Considering that thay are already in competion with each other your statement contradicts itself.

[HeijoshinCool]

Wow. Finally a minister with a good idea.

Get rid of King Power and their entrapping flyers with bogus shoplifting charges. Their high prices defeat the purpose of duty-free, anyway.

[chooka]

Whilst the transport dept is looking after retail who is running the transport system, the Thai Medical association?

[Prbkk]

Another example of this government, braking the status quo of the control of certain companies and individuals in this country.

One more step to the right direction..........many more to come.

Really? The absurd King Power monopoly comes from the time of the elite in power. Perhaps we will now see it opened up to closer friends of the new power brokers. Whatever...the consumer won't win because there will be the same rip-off prices as under the current arrangement. This is not about a better deal for customers, it's about profit for the connected.

[HeijoshinCool]

Whilst the transport dept is looking after retail who is running the transport system, the Thai Medical association?

.

[Sviss Geez]

bringing King Power International Group's control over the industry to an end-- He said the plan was viable as the monopoly contract with King Power would end in 4 years' time for the shop in Suvarnabhumi International Airport, and 7 years for the one in Don Muang International Airport.

" bringing King Power International Group's control over the industry to an end--"

What's so funny about that, (nothing, obviously, but...), don't you think contracts have to be honoured?

[Chang_paarp]

Does this mean that Thai duty free will finally be cheaper than the price on the street?

[Sviss Geez]

Whilst the transport dept is looking after retail who is running the transport system, the Thai Medical association?

The Transport Ministry is looking after the transport system which, rather surprisingly, includes the airports and retailers within the airports. Odd, isn't it?

[chooka]

Does this mean that Thai duty free will finally be cheaper than the price on the street?

probably not. The whole duty free thing is a huge scam and not just in Thailand. Duty free at the Melbourne Airport (Aust) is far more expensive than you can buy at everyday stores outside the airport. Only fools fall for these duty free scams.

[dean008]

It would have been nice if the article ended informing the reader who gave a private company such long contracts to provide a monopoly for duty free shops in the two airports, how long the original contracts were for and an investigation into the whole matter and financial examination of those involved, but as has been said its a step int the right direction

[pchansmorn]

Scam.

[RKASA]

bringing King Power International Group's control over the industry to an end-- He said the plan was viable as the monopoly contract with King Power would end in 4 years' time for the shop in Suvarnabhumi International Airport, and 7 years for the one in Don Muang International Airport.

" bringing King Power International Group's control over the industry to an end--"

What's so funny about that, (nothing, obviously, but...), don't you think contracts have to be honoured?

A court could rule they are unfair and toss them out because they do dis service to the public and consumers. Just because you get it in writing does not mean it is printed in stone.

[NeverSure]

Only two other people get it. Hmmm.......

Edited January 19, 2015 by NeverSure

[billd766]

Another example of this government, braking the status quo of the control of certain companies and individuals in this country.

One more step to the right direction..........many more to come.

Really? The absurd King Power monopoly comes from the time of the elite in power. Perhaps we will now see it opened up to closer friends of the new power brokers. Whatever...the consumer won't win because there will be the same rip-off prices as under the current arrangement. This is not about a better deal for customers, it's about profit for the connected.

Which elite would that be please?

Since 2001 until 2014 there has been the TRT under Thaksin for 5 years, military just over 1 year, PPP under Samak/Somchai for a year, the Democrats under Abhisit for 2 1/2 years, The PTP under Yingluck for 2 years and 9 months followed by the military again since last May.

Which of those parties would be the elite parties and for how long were they in power?

Please bear in mind that the current government is the on which is trying to break the monopoly.

[billd766]

It would have been nice if the article ended informing the reader who gave a private company such long contracts to provide a monopoly for duty free shops in the two airports, how long the original contracts were for and an investigation into the whole matter and financial examination of those involved, but as has been said its a step int the right direction

Try looking here for a starting point.

http://en.wikipedia.org/wiki/King_Power

[chotthee]

King Power in trouble?

Not quite; but they better get busy working on their entertainment budget for 2015.

[Thailand]

An awful lot can change in 4 years.

[Toknarok]

KingPower was granted a monopoly by Royal Charter in 2009. Now remind me again who was in power at that time? it certainly wasn't Thaksin or the PTP.

[tomyummer]

Why not just make Thailand a duty free country and let the tourists flock to Thailand for a true real shopping experience? The prices at KP duty free don't seem to be duty free anyhow. It still price gouges visitors.

[Prbkk]

Another example of this government, braking the status quo of the control of certain companies and individuals in this country.

One more step to the right direction..........many more to come.

Really? The absurd King Power monopoly comes from the time of the elite in power. Perhaps we will now see it opened up to closer friends of the new power brokers. Whatever...the consumer won't win because there will be the same rip-off prices as under the current arrangement. This is not about a better deal for customers, it's about profit for the connected.

Which elite would that be please?

Since 2001 until 2014 there has been the TRT under Thaksin for 5 years, military just over 1 year, PPP under Samak/Somchai for a year, the Democrats under Abhisit for 2 1/2 years, The PTP under Yingluck for 2 years and 9 months followed by the military again since last May.

Which of those parties would be the elite parties and for how long were they in power?

Please bear in mind that the current government is the on which is trying to break the monopoly.

As you very well know, the King Power concession pre-dates Thaksin by some years. The rip-off goes back to the 90s

[Thai at Heart]

Another example of this government, braking the status quo of the control of certain companies and individuals in this country.

One more step to the right direction..........many more to come.

Rather one sided effort though

[Loles]

Those King Power duty free stores are damn expensive I have never understood which reason takes some-one to buy there anything.

[crusty]

bringing King Power International Group's control over the industry to an end-- He said the plan was viable as the monopoly contract with King Power would end in 4 years' time for the shop in Suvarnabhumi International Airport, and 7 years for the one in Don Muang International Airport.

Suvarnabhumi's International departure is a disgrace. It's as though King Power designed the airport themselves, this section has NO travellators (moving walkways) and forces departing passengers to walk 2km. of shops controlled by King Power.

[tubby johnson]

King Power have some very influential shareholders who will no doubt be most displeased. Take them on at your own peril.