Tourism minister pushes for cuts in tariffs on branded products to boost tourist spending

[webfact]

Tourism minister pushes for cuts in tariffs on branded products to boost tourist spending

By Wichit Chaitrong
The Nation

 

Tourism and Sports Minister Phiphat Ratchakitprakarn

 

The minister for tourism wants cuts in tariffs on well-known brands to attract more tourists. Tourism and Sports Minister Phiphat Ratchakitprakarn said the ministry was preparing new measures to promote tourism. 

 

The new package would be announced after October 10, he told a group of reporters. He hinted at the impending measures after the ministry offered Bt100 tickets for domestic travel as a supplement to the Eat, Shop and Spend scheme.

 

He said he would consult the Finance Ministry on whether it could cut tariffs, some as high as about 40 per cent, on brand-name products.

 

“I do not want Thai people to go abroad for shopping brand-name products, which results in money leaking out of the domestic economy,” he said. “If Thai travellers could buy brand-name products here at reasonable prices, then that money would be injected into the local economy,” he said.

 

Moreover, foreign tourists who visit Thailand would spend more here if they could buy brand-name products at cheaper prices than at present, he said.

 

Meanwhile, Lavaron Sangsnit, director-general at the Fiscal Policy Office of the Finance Ministry told The Nation that there were several factors to take into account before the government decides to cut taxes. The average tariff rate on luxury brands is about 30 per cent, he said.

 

He said the issue had been discussed many times in the past, and Thai retailers also wanted the government to cut tariff rates.

 

The government did cut the tariff rate by 15 per cent 10 years ago, but it did not have much of an effect on the prices of luxury goods. The prices of branded products such as leather bags dropped by only 5 per cent, he revealed.

 

He pointed out that brand-name owners may implement a different price strategy for different countries or economies. For example, in Asia they apparently designate Hong Kong as the place for the cheapest price of luxury goods followed by Singapore, he said.

 

Lavaron, however, admitted that these things might change. “So we need to look into the tax matter from many angles, and new factors,” he said.

 

The tourism minister also wants medical tourists to go for treatments out of Bangkok to potential provinces such as Hat Yai in Songkhla in the South.

He said Thailand is lucky as, despite the decline in medical tourists from the Middle East, there had been a rise in medical tourists in recent times from Cambodia, Laos, Myanmar and Vietnam.

 

The government agencies will also try to bid for big events, such as international conferences and trade exhibitions to be held in the country. He said his ministry plans to organise a global e-sport event next year in order to help Thai youth get experience of the new sports. A marathon running event for new couples who want to spend their wedding or honeymoon in Thailand on Valentine’s day will also be held, he said.

 

Tourist attraction events related to local folklore, legends or history will be held all year round in 77 provinces next year, he revealed.

 

He said he would discuss with the Interior Minister about the streamlining of immigration procedures in order to provide more convenience.

 

The government also wanted to send a strong message to tourists that it would make serious efforts to reduce plastic waste and tackle air pollution, he said. He added that the ministry would next year try to keep the number of tourist arrivals the same as this year, as the global economic slowdown and trade tensions have adversely impacted tourism.

 

While almost all economic indicators in August pointed to the economy slowing down, the number of foreign tourists continued to be on the rise, according to the Bank of Thailand.

 

Some 38.2 million foreign tourists visited Thailand last year, up 7.3 per cent from the previous year. The number of tourist arrivals in the first eight months (January to August) this year were 26.6 million, up 2.8 per cent year on year, according to the central bank.

 

Source: https://www.nationthailand.com/business/30377138

 

 

-- © Copyright The Nation Thailand 2019-10-07

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[quandow]

Also known as the "Grasping At Straws Scheme."

[mok199]

Casino's .....are we there yet?

[kevin612]

I will buy iPhone 11 in Thailand if he cuts the tariff.

[Orton Rd]

How about dropping the gouging tax on wine and foreign beers? In Aldi Spain last week where a bottle of decent wine could be had for 85cents, just over 30 baht!

[fruitman]

5 hours ago, Orton Rd said:

How about dropping the gouging tax on wine and foreign beers? In Aldi Spain last week where a bottle of decent wine could be had for 85cents, just over 30 baht!

Also beer-cheese-ham-electronics-tools and much more is so expensive in thailand. Thailand is not a holiday destination anymore for smart tourists.  Europe is so much better these days.

 

 

[chrisinth]

As long as the taxes are collected (and guaranteed) from the legal retailers pocket on import, nothing will change. They are not concerned about the consumer's welfare, reducing the price of brand name produce alone won't make much of a difference. They need to be competitive, end of story.

 

I notice he was deflecting the blame when they last had a cut 10 years ago to the retailers reducing a lesser percentage than the reduction on tariff. Always going to happen, that's business.

[jaiyen]

He wants to discuss with the Interior Minister about streamlining immigration !! Duuhhh !  WE all know the answer !  Ensure that all the counters are staffed.  No good having 50 counters and 15 people on duty !

[upena]

NOT 38.2 million tourists. 38.2 million ARRIVALS. Big difference

[happy chappie]

Luxury goods at 30%. My ray ban sunglasses were 3,750b in the uk.they are 9,600b in top chereon here.to buy anything of western quality from a sink tap to a Porsche is outrageously overpriced.

over the years I have paid for extra baggage and saved £1,000s from a tin opener to a makita drill to a Bose sound system.

i think it's time trump looked into the tariffs Thailand sticks on imports.only in the last year America has lost Harley Davidson jobs to Thailand and its not about the logistics.

in the uk we have much choice with the likes of eBay and amazon but here most of the goods sold are Chinese trash.im forever repairing or throwing items in the bin.

years ago my pals used to come back from Thailand with suitcases full of tshirts but it's the other way around now,I bring all clothing,trainers and even reading glasses with me which were 37.5b in the uk and at the market here they are 150b.

in reality the import duties are called national protectionism but to thais its called easy pickings.

youll never see a customs officer/worker on a bicycle for sure.

[RichardColeman]

 

4 hours ago, webfact said:

Moreover, foreign tourists who visit Thailand would spend more here if they could buy brand-name products at cheaper prices than at present, he said.

Only if 'cheaper' is cheaper than their own country

[30la]

This gentleman will see him daily in the media, he says only nonsens! Results?

[jonclark]

32 minutes ago, happy chappie said:

Luxury goods at 30%. My ray ban sunglasses were 3,750b in the uk.they are 9,600b in top chereon here.to buy anything of western quality from a sink tap to a Porsche is outrageously overpriced.

over the years I have paid for extra baggage and saved £1,000s from a tin opener to a makita drill to a Bose sound system.

i think it's time trump looked into the tariffs Thailand sticks on imports.only in the last year America has lost Harley Davidson jobs to Thailand and its not about the logistics.

in the uk we have much choice with the likes of eBay and amazon but here most of the goods sold are Chinese trash.im forever repairing or throwing items in the bin.

years ago my pals used to come back from Thailand with suitcases full of tshirts but it's the other way around now,I bring all clothing,trainers and even reading glasses with me which were 37.5b in the uk and at the market here they are 150b.

in reality the import duties are called national protectionism but to thais its called easy pickings.

youll never see a customs officer/worker on a bicycle for sure.

You are very correct in pretty much everything you said. When I go back to the UK my wife and I invariable bring an extra bag back full of stuff that is both cheaper and of better quality than in Thailand. 

[Sticky Wicket]

1 hour ago, Orton Rd said:

How about dropping the gouging tax on wine and foreign beers? In Aldi Spain last week where a bottle of decent wine could be had for 85cents, just over 30 baht!

The dross they sell here isn't even wine

It's the most expensive gnat's p!ss in the world

[LNKDES1]

1 hour ago, Orton Rd said:

How about dropping the gouging tax on wine and foreign beers? In Aldi Spain last week where a bottle of decent wine could be had for 85cents, just over 30 baht!

Or the gouging import duty on new cars, which would also bring down the cost of used vehicles as well. I just laugh at the pricing when I go back to the U.S. and see what's available new & used back there.

[neeray]

Nice to see them squirm. "Necessity is the Mother of invention" (Plato).

[Sticky Wicket]

RIP off Thailand, R.I.P.

 

[manhood]

It's as simple as it can be: cut off the high taxes on importet products, that boosts the sales and at the end a win win situation for the retailers as well for the government and yes, why should i buy brand products in Thailand if i can get them cheaper in my home country or any other place in the world!

[dake333]

1 hour ago, happy chappie said:

Luxury goods at 30%. My ray ban sunglasses were 3,750b in the uk.they are 9,600b in top chereon here.to buy anything of western quality from a sink tap to a Porsche is outrageously overpriced.

over the years I have paid for extra baggage and saved £1,000s from a tin opener to a makita drill to a Bose sound system.

i think it's time trump looked into the tariffs Thailand sticks on imports.only in the last year America has lost Harley Davidson jobs to Thailand and its not about the logistics.

in the uk we have much choice with the likes of eBay and amazon but here most of the goods sold are Chinese trash.im forever repairing or throwing items in the bin.

years ago my pals used to come back from Thailand with suitcases full of tshirts but it's the other way around now,I bring all clothing,trainers and even reading glasses with me which were 37.5b in the uk and at the market here they are 150b.

in reality the import duties are called national protectionism but to thais its called easy pickings.

youll never see a customs officer/worker on a bicycle for sure.

Why did you come to live here well?

[Naamblar2014]

I have always believed Thailand to have a high cost of living.  The only thing that made it bearable was having a foreign income and a beneficial exchange rate.  Now with the exchange rate the way it is,  it is cheaper back from were we came. 

Pity the locals, their minimum wage and their cost of living while their government sqaunders taxes.

[Sydebolle]

To explain the Thai system you just look at watches at Swampy airport and its duty and VAT-"free" shops and you'll see, that these watches cost more than in Europe. In addition to that the staff is more interested in Line, WhatsApp and Facebook, limited English and dont even know the difference between mechanical and quartz movements. 
It takes a special customer to buy such a product and, for once, it is not a question of the product but about everything around the product. Go figure! 

[arun1]

Desperado!!!

[FinChin67]

After returning to Malaysia for a week in Thailand this starts to confirm my feeling that they are in panic. Or sort of panic as these guys are well taken care of. The "ideas" they come up with, like this, are a joke.

It was really quiet and everyone I talked to said that it's going to be a really "low high season" coming. Based on information they got from their tenants, customers usually returning etc... Bath is scaring away people and some do not anymore qualify, or bother, with the new retirement visa rules.

 

Chinese will not save their bottoms. Chinese tourist spend money with Chinese shops, operators and tour groups. If they do and go somewhere else they cause mayhem and misery. Rich Chinese go to US and Europe + other really exotic places to take some photos for their Wechat feed..

 

Indians? No comment.

 

Once Thailand has lost these long term customers/visitors they will not come back if they find new nice places for their holidays...

 

[moe666]

1 hour ago, happy chappie said:

Luxury goods at 30%. My ray ban sunglasses were 3,750b in the uk.they are 9,600b in top chereon here.to buy anything of western quality from a sink tap to a Porsche is outrageously overpriced.

over the years I have paid for extra baggage and saved £1,000s from a tin opener to a makita drill to a Bose sound system.

i think it's time trump looked into the tariffs Thailand sticks on imports.only in the last year America has lost Harley Davidson jobs to Thailand and its not about the logistics.

in the uk we have much choice with the likes of eBay and amazon but here most of the goods sold are Chinese trash.im forever repairing or throwing items in the bin.

years ago my pals used to come back from Thailand with suitcases full of tshirts but it's the other way around now,I bring all clothing,trainers and even reading glasses with me which were 37.5b in the uk and at the market here they are 150b.

in reality the import duties are called national protectionism but to thais its called easy pickings.

youll never see a customs officer/worker on a bicycle for sure.

It is actually called not much of a income tax, they got to get the revenue somewhere

[PatOngo]

6 hours ago, webfact said:

“I do not want Thai people to go abroad for shopping brand-name products, which results in money leaking out of the domestic economy,” he said.

Although a trip to Italy would be ok, ah, to check on late closing times! Definitely no shopping while there!???? I'm sure he and his billionaire wife only buy Thai brands!

[simtemple]

2 hours ago, mok199 said:

Casino's .....are we there yet?

Many world class Casino venues in Manila and hundreds of thousands Chinese tourists and immigrants. 

 

http://www.chinadaily.com.cn/a/201907/09/WS5d2405d6a3105895c2e7c7b8.html

[DLock]

58 minutes ago, LNKDES1 said:

Or the gouging import duty on new cars, which would also bring down the cost of used vehicles as well. I just laugh at the pricing when I go back to the U.S. and see what's available new & used back there.

Just a hunch, but not sure reducing the duty on cars will increase tourism that much.

[kingofthemountain]

3 hours ago, mok199 said:

Casino's .....are we there yet?

Coming soon..

[Deli]

3 hours ago, mok199 said:

Casino's .....are we there yet?

Soon, very soon

[bronzedude]

Is  this guy talking about Thailand? Even his minister friends will be laughing at his suggestions while they vote against them. Nothing moves here without the brown envelope.