Thailand to close all duty-free shops in airport arrival halls to encourage tourist spending elsewhere

Thailand will close all duty-free shops in arrival areas of international airports, in a bid to redirect spending by tourists inside the country.

The news was announced by the Cabinet last Tuesday (Jul. 2), Thailand's media The Nation and Bangkok Post reported.

Duty-free shopping scrapped

Duty-free shopping will be scrapped from Suvarnabhumi, Don Mueang, Chiang Mai, Phuket, Hat Yai, U-Tapao, Samui and Krabi airports. A timeline for the closure has not been set.

Three operators manage duty-free shops at arrival areas inside these airports. According to the Thai government, these shops generated a total profit of S$3.02 billion baht (S$112 million) in 2023.

These operators have agreed to stop operations in all inbound duty-free shops until such policy is lifted, according to a spokeswoman.

Increase in domestic spending

The closure of all duty-free shops in the arrival areas of Thai airports is projected to increase tourists' spending in local shops by an average of 570 (S$21.10) baht during their trip, according to the government.

While the move would mean a loss in revenue for duty-free operators, the projected 3.5 billion baht (S$130 million) it would generate in local retail spending each year will boost overall production, investment, and employment, the Thai government believes.

It would also promote domestic consumption, use of local products, and boost overall economic value.

Tourism is one of the major contributors to Thailand's economy, accounting for nearly 20 per cent of gross domestic product, according to Nikkei.

Starting Jul. 1, the country extended visa stay periods for tourists, students, and remote workers; and made more countries eligible for visa-free entry to attract more tourists.

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