THAILAND. Local people and foreign tourists who support Tsunami-hit provinces will be given the chance to buy duty free goods in domestic stores.
Between October and March 2006 locals will be eligible to forgo import taxes if they book a hotel room in one of the six provinces affected by the Tsunami.
In another government initiative, foreign tourists will, for the first time, be able to buy duty free items when shopping outside Phuket Airport.
The authorities are trying to revive interest in travelling to the Andaman Coast following a sharp drop in tourism. In the first half, just over five million tourists visited the area, compared to the annual target of 13.4 million.
Deputy Finance Minister Varathep Ratanakorn said the Customs Department had approved duty free shopping for travellers to the area.
Foreign tourists will be able to go duty free shopping in a special plaza in Phuket, but locals will be allowed to buy such items in all six provinces – Phuket, Krabi, Phang Nga, Satun, Ranong and Trang.
Foreign tourists will be able to buy duty free products by showing their passports. Local tourists have to show evidence of a hotel booking or travel document before purchasing. Travellers can buy only a limited number of items and their total value is also limited.
In a related development, Thai-French joint venture Siam Sawasdee Co has announced Phuket’s first duty free shop. Sawasdee Duty Free Plaza, located near Saphan Hin, is due to open in December.
Managing Director Weeravit Lew said the firm had invested more than Bt400 million in the outlet. The plaza will feature international brands, fashion items, leathergoods, cosmetics, electronics and consumer technology. The plaza aims to cater to all tourists. The firm expects sales of Bt600 million in its first year.
The company plans to open five stores throughout the country in the next three years. Target areas include Siam Centre and business districts in Bangkok, Pattaya, Chiang Mai and Samui. Each branch would require an investment of Bt200 million, said Weeravit.
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