Thai government looks to expand duty-free services

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.