THAILAND. Speculation is building in Thailand over a possible revival of arrivals duty-free shopping, with multiple reports suggesting Airports of Thailand (AOT) is weighing the reinstatement at its airports.
Such a volte-face would spell good news for beleagured travel retailer King Power, AOT and arriving passengers.
Powerful local media The Nation cited AOT President Paweena Jariyathitipong pointing to continued calls from passengers for arrivals duty-free shopping, noting that some were now purchasing goods overseas instead before returning to Thailand.
She said restoring the service could help retain spending in Thailand while supporting airport revenues and the passenger experience.
The seemingly illogical demise of arrivals duty-free shopping in Thailand began in August 2024, as part of a government initiative to encourage tourists to spend more within the domestic market.
The Moodie Davitt Report has approached King Power for comment and will bring you any updates in due course.
The closure also aligned with AOT’s plans to reclaim space previously occupied by duty-free retail and government agencies, with around 1,400sq m at Suvarnabhumi Airport and 491sq m at Phuket International Airport earmarked for improvements to passenger facilities and airport operations.
The Nation cited Deputy Transport Minister Siripong Angkasakulkiat discussing the proposal during a site inspection at Suvarnabhumi Airport in Bangkok.
Somewhat bizarrely, the official said it was not simply a question of lost retail sales but that shopping, dining and musical performances could provide travellers with additional options while waiting for immigration clearance and help ease congestion.
Since the scrapping of arrivals duty-free shopping in August 2024 and allied to a downturn in Chinese spending, AOT has seen intense pressure on its commercial revenues.
As reported, non-aeronautical revenues for the three- and nine-month periods ended 30 June fell -7.96% and 5.56%, respectively, to THB7,258.67 million (US$221 million) and THB23,863.54 million (US$727 million).
The potential revival of arrivals shopping depends on the status of the previous Cabinet resolution and concession arrangements, as well as whether the suspension was intended as a two-year trial, Siripong said.
The Nation said AOT has made several submissions to the Fiscal Policy Office seeking the reinstatement of arrivals duty-free services, with its latest letter submitted last week (14 August).
Whether the proposal will be forwarded to the Cabinet will be determined by the Fiscal Policy Office and the Finance Ministry.
The well-sourced report said AOT is reportedly exploring two potential formats for the return of arrivals duty free, including a pick-up counter where passengers can collect pre-ordered purchases after landing – a concept not yet introduced at Thai airports.
The second option is, as before, a traditional arrivals duty-free formula where passengers can shop in-store.
Paweena told The Nation that the original arrivals duty-free concession rights remain valid despite the suspension, and AOT could negotiate with the existing concessionaire on resuming operations without issuing a new concession if the government approves the proposal.
While AOT confirmed it had not paid direct compensation or damages to the operator, the airport company adjusted concession payments to reflect the revised business conditions, a move it described as part of contract management process. ✈
