SINGAPORE: Thailand will shut duty-free shops at the arrival areas of its international airports to encourage travellers to spend more elsewhere in the country.
The three operators of inbound duty-free businesses at eight international airports including Bangkok’s Suvarnabhumi and Don Meaung have agreed to suspend operations, reported news outlet Bangkok Post, quoting a deputy government spokesperson.
The other airports are in Chiang Mai, Phuket, Hat Yai, Rayong, Samui and Krabi.
No date has been set for the inbound duty-free operations to cease, according to various media reports.
Last year, sales from Thailand’s inbound duty-free shops amounted to 3.02 billion baht (US$82.9 million), according to its customs department.
The government estimates their closure will increase foreign visitors’ spending by 570 baht per person, per trip.
Thailand is expected to draw over 36 million visitors this year, according to the World Bank.
From Jan 1 to April 14, it welcomed 10.72 million foreign tourist arrivals, according to statistics from the tourism and sports ministry. Over two million tourists were from China, followed by Malaysia, Russia, South Korea and India.
Before the COVID-19 pandemic, tourism accounted for about 20 per cent of the country’s economy.
