Thailand is looking to shut down duty-free shops in international airports

Thailand is all set to enhance tourist spending on domestic goods by closing its inbound duty-free shops at eight international airports, including the ones in Bangkok.

Thailand is about to close its duty-free shopping areas in the arrivals section of all its international airports. This decision comes in a bid to enhance spending by tourists within the country, including at local markets and shopping malls. Although no deadline has been set for the implementation of the move, the Thailand government has identified eight airports across the country, Suvarnabhumi, Don Mueang, Phuket, Krabi, Samui, Chiang Mai, Hat Yai, and U-tapao, where inbound duty-free shopping will be ceased.

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Thailand to close duty-free shops at international airports

The move is expected to generate up to THB 3.5 billion of new local retail spending every year. According to Rudklao Intawong Suwankiri, a deputy spokesperson of the Thai Government, cabinet ministers agreed to abide by guidelines that are being set up to promote Thailand as a major tourism and spending hub in Asia, as proposed by the Ministry of Finance. The decision also includes scrapping tax benefits for bonded warehouses for inbound duty-free shops. All three operators of inbound duty-free businesses at the eight international airports have agreed to suspend operations as soon as they are directed by the government to do so.

Suwankiri further clarified that customers purchasing goods from inbound duty-free shops at international airports in Thailand decrease their chances of spending on domestic goods from local shops and markets. Thailand’s Finance Ministry expects an increase in spending by tourists and raising foreign tourists’ spending by THB 570 (INR 1,300) per person per trip, subsequent to the closure of inbound duty-free shops.

One of the most popular destinations in Southeast Asia, Thailand is putting in a lot of effort to enhance its position in the continent as a travel and shopping hub, from extending visa-free amenities to removing tourist fees. Some of the must-visit places of Thailand include the urban attractions of Bangkok, as well as the natural wonders of Phi Phi Islands, James Bond Island, Pattaya, Phuket, Krabi, and Koh Samui, among others.

(Feature image credit: Artaporn Puthikampol/Shutterstock)

This article originally appeared on Travel+Leisure Asia.