In the arrivals area of each of its international airports, Thailand is set to close its duty-free retail zones. This move is an attempt to increase foreign visitor spending domestically, especially at small-town marketplaces and retail centers. The Thailand government has designated eight airports nationwide—Suvarnabhumi, Don Mueang, Phuket, Krabi, Samui, Chiang Mai, Hat Yai, and U-tapas—where inbound duty-free shopping would be discontinued, however, no timeline has been established for the implementation of the change.

Thailand’s closure of inbound duty-free businesses

It is anticipated that the change will result in an annual increase in local retail spending of up to THB 3.5 billion. The Ministry of Finance recommended recommendations that cabinet ministers agreed to follow in order to promote Thailand as a significant center for tourism and expenditure in Asia, according to Rudklao Intawong Suwankiri, the deputy spokeswoman for the Thai government. The decision also eliminates tax advantages for bonded warehouses housing duty-free imports. The eight international airports’ three operators of duty-free enterprises have committed to halting operations as soon as the government gives them the go-ahead.

Suwankiri went on to explain that consumers who buy items from duty-free stores at Thailand’s international airports are less likely to spend their money on locally produced goods from marketplaces and stores. After incoming duty-free stores close, Thailand’s Finance Ministry anticipates a rise in tourism spending, with international visitors spending an additional THB 570 (INR 1,300) per person every trip.

Thailand, one of the most visited places in Southeast Asia, is working hard to improve its standing as a tourism and retail hotspot on the region by eliminating tourist taxes and expanding its visa-free travel options. Thailand’s must-see locations include Bangkok’s metropolitan attractions, the Phi Phi Islands’ natural beauties, James Bond Island,