Thailand’s government has approved the closure of duty-free shops at arrival halls in the country’s biggest airports, in a bid to encourage more tourist spending inside the country.
The decision was taken during a cabinet meeting on Tuesday and, although no timeline has yet been established, it foresees 8 international airports: Suvarnabhumi and Don Mueang in Bangkok, as well as those in Phuket, Chiang Mai, Hat Yai, U-Tapao (Rayong), Samui and Krabi.
There are 3 operators managing duty free shops at arrivals halls across Thailand’s airports and last year they brought in 3 billion baht (a little over €76 million) in combined sales. It is hoped that the closure, which the companies agreed to, according to the Bangkok Post, will move that money into local stores instead. The government estimates that will lead to an average 570 baht (€14.5) more spent per person per trip at domestic shops across the country.
Besides encouraging tourism spent, the move is also part of a plan to expand and improve the country’s airports. Airports of Thailand (AOT) is planning to use 1,400 m2 at Suvarnabhumi Airport and 491 m2 at Phuket International Airport, reclaimed from retail stores and several government agencies, to upgrade passenger facilities and decongest the airport areas.
This is also in line with the government’s plan to propel the Suvarnabhumi Airport among the top 50 in the world by the end of next year, from 68th place last year. By 2029, it is hoped the airport will be able to handle 170 million passengers and 1 million flights per year, reaching among the top 20 air travel hubs in the world.
As many countries around the world grapple to reduce overtourism, Thailand is going the other way, leaning into the sector and leading the way for the sort of transformation others are seeking, to boost income instead of tourist volume. Government spokesperson Chai Wacharonke has highlighted the importance of tourism to the Thai economy and employment figures.
The strategy to bring in tourists and revenue seems to be working, 9.4 million foreign tourists visiting the country in the year’s first quarter. With such a promising start of the year, the country seems set to achieve its goal of beating pre-Covid figures by 100,00 to reach a record 40 million tourist arrivals for the year. But, more importantly perhaps, the revenue from those arrivals is expected to go up by 84% compared to 2019.
