Duty-Free Shops in Town

A duty-free shop is used as a strategy in developing merchandise quality and encouraging more tourists' spending-another way to increase the country's income. Realizing this, the government supported the duty-free shop business operation by giving permission to the TAT to set up another duty-free shop in town, in addition to the one at Don Muang Airport, on April 25, 1989.

The TAT, in collaboration with Downtown D.F.S. (Thailand) company, established TAT Duty-Free Merchandise Company Limited, with the registered capital of 140 million Baht, in 1989. This company would operated a duty-free shop under a five-year contract, as of September 1, 1989 to August 31, 1994. The term of agreement was that the company would allocated 10% of its sales to the TAT.

By the resolution of the Cabinet on August 30, 1994, the TAT was assigned to launch a new type of duty-free shops throughout the country. These newly established duty-free shops would be used as an instrument to support the tourism industry promotion policy as well so to upgrade Thai products, especially locally made products, to the standard in terms of quality and price. The shops would be operated at a low cost and enhance different areas of competition. The operation would be under Thailand Duty-Free being the sole shareholders. This company would designate areas where foreign goods and Thai products would be for sale. Various facilities would also be offered, for example, foreign-currency exchange counters, foods and refreshments. The company employed a professional administrative team from Ireland-Aer Rianta International Cpt. to manage the shops. The management of the afore-mentioned team would be under the supervision of the members of the company's executive board consisting of representatives from the TAT and highly-qualified persons. The company's executive board members would set up policies and supervise the management team to make sure that the business operation proceeded in the same direction as the guideline.

Merchandise for sale that is exempt from import duty or VAT include, for example, liquors, tobacco, perfumes, leather products, cosmetics, sporting goods and cameras; locally made products are, for example, Thai handicrafts or products from various projects and organizations-SUPPORT Foundations and the Royally Initiated project, export goods-for instance, leatherwear, jewelry and clothes. The company opened its first in-town duty-free shop at the World Trade Center, seventh floor, The business is going to be expanded to other major tourist areas or along the border where foreign trade contact is made or passengers travel in and out of the country.