Thailand ‘King of Duty Free’ King Power to close duty free shops

Chinese tourists absence weights on business

Chinese tourists have long been King Power’s lifeline, accounting for about 70% of its customers. But their numbers have fallen sharply, undermined by safety concerns, shifting travel habits, and broader geopolitical and trade tensions.

In the first five months of 2025, only 1.95 million Chinese travelers visited Thailand. This number is down nearly a third from the same period last year, according to The Nation. If the decline continues, the total may not surpass the 5-million mark for the first time in over a decade.

The contraction is forcing King Power to reconsider its entire strategy. Alongside the store closures, the company has rolled out voluntary resignation programs, while offering employees from closing locations the option to stay.

King Power still operates three downtown duty-free stores — at Rangnam, One Bangkok, and in Phuket. But Nitinai acknowledged that the company needs to diversify into new “captive market” businesses to ensure long-term sustainability. A revised business model, he said, should emerge within four to five months.

Are Duty Free stores at main airports due to follow ?

At the same time, King Power is also reevaluating its presence at Thailand’s airports. In late May, its duty-free subsidiary formally asked AOT to cancel contracts at five international gateways — Suvarnabhumi, Don Mueang, Phuket, Chiang Mai, and Hat Yai. The announcement rattled investors, sending AOT shares tumbling.

The company has cited multiple pressures on its airport business: weaker tourist spending, the government’s decision to lower taxes on wine, the removal of arrivals duty-free shopping, and lingering fallout from the pandemic. Both sides now await a decision expected later this year. But as King Power current CEO used to be AOT President, prior to his job switch, possible arrangements to “save” King Power business are likely to happen.

For a brand that once dominated Thailand’s duty-free landscape and projected global ambition, King Power now finds itself in uncharted territory. The company insists duty free will remain its core strength. However, the era of effortless growth appears over. The coming months will determine whether “The King of Duty Free” can reinvent its crown.