Thailand makes booze cheaper in bid to revive tourism after lockdowns

Thailand is cutting alcohol taxes and tariffs in a bid lower the cost of a night out and attract more tourists.

A 54% tariff on wine imports will be "exempted indefinitely," according to local media accounts of a Thai cabinet meeting, while excise duties on locally produced wine will be cut to 10% or below.

The measure is designed not only to expand the budding domestic industry, but also to add to supplies of less-expensive alcohol.

The government had in recent years increased tariffs on wine in a bid to raise revenues. But in the wake of the Covid pandemic and border closures, the focus has changed to reviving the tourism industry, which suffered a collapse during the 2020-2022 period.

The proposals come after officials last month moved to suspend duty-free shopping at airports to get travellers to spend more in shops and restaurants in towns and cities.

In late November, officials also announced Thailand's pubs, bars and nightclubs would get extended opening hours as part of government measures aimed at rekindling tourism with a thriving nightlife scene.

The Finance Ministry told local media that the aim of the latest measure was to boost the country’s appeal to tourists by making a night out less expensive.

"Even though those measures could affect the department’s revenue, we believe that spending will be increased," an excise department spokesman said.

The Tourism Authority of Thailand said in December that the country was on track to record over 27 million visitors in 2023, a huge improvement on 2022’s 11.5 million but far short of 2019’s 39 million, a number that put the south-east Asian country fifth globally after the US and around the same as Italy.