Thailand's cabinet has decided to close duty-free shops in the
arrival zones of eight international airports, including Bangkok's
Suvarnabhumi and Phuket International.
The move aims to encourage tourists to spend more within the country,
although no specific timeline for the closures has been announced.
Three operators currently running these duty-free stores reported
combined sales of approximately 3 billion baht (US$82 million) last
year. The Thai government states that these companies have agreed to the
closure.
According to government estimates, the absence of duty-free shopping
upon arrival is expected to result in travellers spending an average of
570 baht more elsewhere in Thailand during their visit.
Tourism plays a crucial role in Thailand's economy, contributing
nearly 20% to the country's GDP. In the first four months of this year,
foreign arrivals reached almost 90% of the levels seen in the same
period of 2019, before the Covid-19 pandemic.
Additionally, Thailand recently expanded the number of countries and regions eligible for visa-free stays from 57 to 93 in June.