Thai government looks to expand duty-free services
In this article (5)
The government is exploring ways to allow more companies, including South Korea-based Lotte Group, to operate duty-free services at airports and downtown areas.
Currently, King Power, the country’s largest duty-free company, is the sole concessionaire operating duty-free shops at Suvarnabhumi, Don Mueang and Phuket airports overseen by the Airports of Thailand (AoT).
Transport Minister ACM Prajin Juntong has revealed that Lotte Group’s executives met him last week. The South Korean operator inquired about the possibility of it stepping in as a new player in Thailand’s duty-free market.
However, King Power currently holds the concession as the sole operator of duty-free shops at Suvarnabhumi until 2019 and at Don Mueang until 2022. Therefore, it is impossible for the government to allow new duty-free shop operators at the airports.
Once a new terminal is built as part of Suvarnabhumi’s second phase of development, there is likely to be more than one duty-free shop operator, but until then, King Power holds the concession, said the minister.
Questions & Answers
Q.Which company currently holds the exclusive rights to operate duty-free shops at Thailand's major airports?
Which company currently holds the exclusive rights to operate duty-free shops at Thailand's major airports?
King Power is currently the sole concessionaire for duty-free services at Suvarnabhumi, Don Mueang, and Phuket airports, which are overseen by the Airports of Thailand (AoT).
Q.When does King Power's exclusive concession at Suvarnabhumi Airport expire?
When does King Power's exclusive concession at Suvarnabhumi Airport expire?
King Power holds the concession as the sole operator of duty-free shops at Suvarnabhumi Airport until 2019. It also holds the concession at Don Mueang until 2022.
Q.Why is the government unable to immediately introduce new duty-free operators at existing airports?
Why is the government unable to immediately introduce new duty-free operators at existing airports?
The government cannot allow new duty-free shop operators at the airports yet because King Power currently holds the concession for these services. This exclusivity means new operators cannot step in until these agreements expire.
Q.What might allow for additional duty-free operators at Suvarnabhumi in the future?
What might allow for additional duty-free operators at Suvarnabhumi in the future?
More than one duty-free shop operator is likely once a new terminal is built as part of Suvarnabhumi’s second phase of development. Until then, King Power retains its concession.