AOT considers restoring arrivals duty-free shops at Thai airports

Airports of Thailand Public Company Limited (AOT) is studying the revival of arrivals duty-free services and could hold talks with King Power, the existing concession holder, if the government approves the proposal.

Deputy Transport Minister Siripong Angkasakulkiat said the Transport Ministry would urgently consult the Finance Ministry and AOT after the Fiscal Policy Office proposed restoring duty-free shops in international arrivals areas.

The Cabinet ordered arrivals duty-free services to end in 2024. Before proceeding, the authorities must determine whether the original decision was a temporary two-year trial or a binding long-term cancellation.

Siripong said the proposal was not focused solely on retail sales. The government also wanted to use airport commercial areas and activities to improve passenger management during lengthy waits at immigration.

“When many flights arrive at the same time, immigration areas can become crowded and passengers may face long waiting times,” he said.

“Providing shops, restaurants, shopping areas and musical performances would give passengers additional options while they wait and could help ease congestion.”

Previous Cabinet resolution and contracts require review

Siripong said at least two major issues would have to be examined: the earlier Cabinet resolution suspending arrivals duty-free services and the legal and contractual conditions involving the existing concessionaire.

The government must establish whether the previous suspension was intended only as a two-year experiment and, if so, what options would be available when that period ends.

“We need to examine the law and the details of the previous Cabinet resolution because the matter involves both the Cabinet decision and existing contracts,” he said.

“If it was only a two-year trial suspension, we must consider whether the service can be reviewed and what form any future operation should take once the trial period ends.”

AOT cites passenger complaints and lost revenue

AOT president Paweena Jariyathitipong said the airport operator was preparing a proposal to restore arrivals duty-free services, which were discontinued on August 1, 2024.

The original policy was intended to encourage passengers entering Thailand to purchase goods domestically, increasing spending and economic circulation inside the country.

However, AOT has received continuing comments and complaints from passengers seeking the return of arrivals duty-free shops.

Passenger-satisfaction surveys and airport service-level assessments also found that the absence of services expected by some travellers affected how Thai airports compared with leading international airports. The cancellation also reduced AOT’s revenue.

“Some passengers purchased goods in their countries of departure before returning to Thailand after arrivals duty-free services were discontinued,” Paweena said.

“This meant that some spending flowed overseas instead of taking place domestically. Restoring the service could therefore increase revenue, improve the passenger experience and strengthen the competitiveness of Thai airports.”

Two possible service models under consideration

AOT has submitted several letters to the Fiscal Policy Office proposing the return of arrivals duty-free services, most recently on August 14, 2026.

Whether the proposal will be submitted to the Cabinet will depend on the authority and discretion of the Fiscal Policy Office and the Finance Ministry.

AOT is studying two possible operating models.

The first is a pick-up counter, allowing passengers to order products in advance and collect them upon arrival at the airport. Paweena said such services were available at many airports worldwide but had not yet been introduced at Thai airports.

The second option is a conventional arrivals duty-free shop where passengers can enter and purchase products immediately.

Even if the proposal is approved, the restored service may not be identical to the previous arrangement because AOT has already reassigned some former duty-free areas for other purposes.

The airport operator would therefore have to review the allocation of space and design a service model appropriate to current conditions.

Existing concession rights remain valid

Paweena said the original concession rights for arrivals duty-free operations remained in effect. Suspending or discontinuing the service did not terminate those rights.

Should the government approve the revival, AOT could negotiate with the existing concession holder on the conditions for resuming operations without having to award an entirely new concession.

AOT acknowledged that the previous cancellation may have imposed costs on the operator, including dismantling shops and managing remaining stock.

The two sides would therefore have to discuss an appropriate operating model, with passenger convenience and public benefit treated as the main priorities.

AOT confirmed that it had not paid the operator direct compensation or damages following the cancellation.

However, because the business model and use of airport space had changed, AOT recalculated concession payments to reflect the revised contractual conditions. It described the adjustment as part of its normal contract-management process.