Thailand should revise alcohol sales to boost tourism: Experts

Earlier, Prime Minister Paetongtarn Shinawatra instructed relevant agencies to review laws restricting alcohol sales, as existing regulations hinder economic growth and conflict with the government’s tourism stimulus policies. 

The authorities have been tasked with assessing the impact of the ban on alcohol sales between 2pm and 5pm, as well as restrictions on Buddhist holidays, to determine their effects on tourism. 

The agencies will also examine zoning laws and online sales prohibitions, some of which date back to 1972 – long before the digital economy and the Covid-19 pandemic reshaped consumer behaviour.

Hotel and entertainment venue operators supported the PM’s directive, which could enable them to generate higher revenue. However, some people opposed this directive, saying it could trigger healthcare burden and social issues.

“Thailand managed to reclaim the title of Southeast Asian country with the highest foreign arrivals of up to 35.5 million foreign travellers in 2024,” said Charanya Nopnukulvised, operations director of EU-ASEAN Business Council (EU-ABC).

She added that Bangkok was named the city with the highest number of foreign visitors last year, up 37% year on year.

The Paetongtarn-led government has launched a campaign “Amazing Thailand Grand Tourism and Sports Year 2025”, aiming to draw 39 million foreigners and generate 3 trillion baht in tourism revenue.

Premium F&B is key to attracting high-quality tourists

According to a report by the Oxford Economics and Asia-Pacific International Spirits and Wines Association (APISWA), premium food and beverage (F&B) options are influencing destination choices among high-spending tourists.

The report entitled “Capturing High Quality Tourism for Southeast Asia: The Impact of Premium F&B Experiences on Destination Choice” showed the following insights:

• A significant 71% of survey participants regard F&B experiences as crucial when selecting a travel destination. This viewpoint is notably stronger among individuals in higher income groups, with 75% highlighting its importance.  
• Tourists are up to 2.5 times more inclined to opt for destinations that provide high-quality, diverse and easily accessible F&B experiences compared to those with limited options.  
• On average, tourists are willing to pay US$250 (8,411 baht) more per person per day for premium F&B offerings, along with superior service, over basic alternatives. This inclination spans across all income levels, as tourists appreciate the added value of premium offerings.  
• The concept of value for money ranks high in importance, equally significant for both high-income and lower-income tourists. In fact, 78% of prospective high-income tourists consider value for money as “important” or “highly important”.  
• Among Southeast Asian destinations, safety emerges as the top priority for tourists when it comes to F&B experiences, with 84% of respondents identifying it as pivotal in their destination selection.  

The survey gathered information from 1,800 potential tourists from Southeast Asia's top five source markets: China, South Korea, Australia, the US and the United Kingdom.

James Lambert, Oxford Economics’ director for economic consulting in Asia

“Chinese travellers were three times more likely to choose destinations where food and beverage options were more accessible and they were willing to pay more for that privilege,” said James Lambert, Oxford Economics’ director for economic consulting in Asia.

He added that travellers from South Korea, the US and the United Kingdom were willing to spend higher amounts in return for exceptional service. 

James advised Southeast Asian policymakers to embrace and facilitate the development of F&B experiences for visitors, ensure that policy frameworks do not incentivise behaviour that will compromise safety and reliability, and not lose sight of price competitiveness.

Thianprasit Chaiyaphattranan, president of the Thai Hotel Association

Nightlife travel experience

Thianprasit Chaiyaphattranan, president of the Thai Hotel Association, supported the revision of alcohol sales restrictions, confirming that this will attract high-quality travellers to Thailand.

He explained that Kasikorn Bank forecast Thailand to attract 37.5 million tourists this year, generating 178 billion baht in tourism revenue. Of them, 33% of expenditure would be spent on accommodations, he said.

“Revision of alcohol sales restrictions will benefit small and large hotels,” he said, adding that travellers would be able to access exceptional nightlife services, such as drinking while cruising the Chao Phraya River.

Thianprasit pointed out that Thai people are already familiar with alcohol sales restrictions, saying that these restrictions adversely affect foreign tourists as they are not aware of this issue.

He asserted that foreign tourists have a higher responsibility for alcohol consumption than Thai people. Most foreign tourists consume alcohol in hotels, he explained, adding that some tourists call taxis after drinking.

Rawat Khongchat, a member of the Night Restaurant Business Trade Association

Strict law enforcement needed

Rawat Khongchat, a member of the Night Restaurant Business Trade Association, pointed out that Entrepreneurs in Nakhon Ratchasima province faced revenue loss despite positive sentiment from the Southeast Asian Games in 2007.

Entrepreneurs in Nakhon Ratchasima province faced 100 million baht in revenue loss due to the ban on alcohol sales during local elections at that time, he explained.

He noted that Fridays to Sundays offer entertainment venues an opportunity to generate income, but it would turn into doom if any Buddhist holidays fall on some of those days.

Rawat urged the government to strictly enforce alcohol-related laws against violators, confirming that entertainment venue operators are ready to comply with laws.

Laws should be enforced against motorists who commit drunk driving, while zoning should be applied to schools and tourist attractions, he said, adding that this would encourage people to adopt good alcohol consumption practices.

He also urged the government to promote nightlife tourism to boost Thailand’s tourism competitiveness.

“Neighbouring countries like Malaysia and Vietnam are promoting nightlife tourism, and we could not compete if we do not follow them,” he warned.

Outdated and unclear regulations

The alcohol industry generates 600 billion baht in revenue for Thailand annually, but also triggers 170 billion baht in healthcare and accident expense burden, said Tippatrai Saelawong, senior researcher at Thailand Development Research Institute (TDRI).

He claimed that alcohol-related laws are outdated and unclear, triggering an impact on entrepreneurs and society. 

Small restaurant operators are affected by the police’s 50,000 baht fine for alcohol advertising, he explained, adding that 283 restaurants in Bangkok sell alcohol to children aged below 20 years.

Tippatrai pointed out that entrepreneurs are also affected by “invisible costs” totalling 26 billion baht: Requirements for licences to operate tour, hotel and massage businesses. 

“Licence for operating a massage business requires a month of training, but it takes up to two months to issue a licence,” he explained, noting that these requirements affect entrepreneurs’ competitiveness.

He added that online business operators can cope with such requirements due to outdated laws. Banning alcohol sales on Buddhist holidays is a religious strategy, but it might not be effective for some people, he added.

Private collaboration is important 

APISWA representative Anchalee Poomsrikaew said the private sector should be allowed to take part in revising alcohol sales restrictions to ensure maximum benefits for entrepreneurs and society.

She confirmed that alcohol sales through online channels are the best way to prevent access among children aged below 20 years and drunk driving accidents, saying that other countries have adopted this practice.

“This practice enables consumers to consume alcohol at home and mitigate risk of road accidents,” she said.

Anchalee affirmed that revising alcohol sales restrictions could enable Thailand to generate an additional 100 billion baht in tourism revenue, stimulate the grassroots economy and create jobs for people.

Boosting the potential of bartender service plays a crucial role in attracting tourists to Thailand, she said. 

She added that tariff reduction on wines and spirits, which came into effect on February 23 last year, also plays a pivotal role in the country’s competitiveness on alcohol pricing.