Unlocking Thailand's Tourism Potential: Why Lifting the 2-5 PM Alcohol Ban is an Economic Imperative

 

The Asia Pacific International Spirits and Wines Alliance (APISWA) has launched a new initiative advocating for crucial regulatory reforms to unlock Thailand's tourism potential, potentially adding 100 billion baht in revenue.

 

Central to this initiative is the call to lift the longstanding 2pm-5pm alcohol sales ban, alongside zoning reforms and the allowance of e-commerce alcohol sales, which APISWA argues are essential for Thailand to compete effectively as a global tourism hub.

 

"Modernising alcohol regulations is not about promoting drinking; it's about promoting Thailand's economy, supporting businesses, and ensuring that our tourism industry remains world-class," said APISWA.

 

According to a recent report by Oxford Economics and APISWA, premium food and beverage (F&B) options significantly influence destination choices for high-spending tourists. A striking 71% of survey participants consider F&B experiences crucial when selecting a travel destination, with this figure rising to 75% among higher-income individuals. 

 

 

 

The study found that tourists are 2.5 times more likely to choose destinations offering high-quality, diverse, and easily accessible F&B options. On average, tourists are willing to spend an additional US$250 per person per day for premium F&B offerings and superior service. 

 

This increased spending could significantly boost Thailand's tourism revenue, particularly as the country prepares for the "Amazing Thailand Grand Tourism and Sport Year 2025" initiative.  

 

 

 

Notably, this preference spans across all income levels, highlighting the universal appeal of enhanced dining experiences. Value for money remains a key consideration for both high-income and lower-income tourists, with 78% of prospective high-income tourists rating it as "important" or "highly important" in their decision-making process. 

 

Safety emerged as a paramount concern among Southeast Asian destinations, with 84% of respondents identifying it as a critical factor in their destination selection. This underscores the importance of ensuring safe and reliable F&B experiences for tourists visiting Thailand.

 

 

Economic Impact and Regulatory Hurdles

According to Mrs.Anchalee Poomsrikaew from APISWA, a prominent industry figure, revising alcohol sales restrictions, specifically including the 2-5pm ban, zoning, and ecommerce, could enable Thailand to generate an additional 100 billion baht in tourism revenue, stimulate the grassroots economy, and create jobs. This significant economic potential underscores the urgency of reforming current regulations.  

 

The current restriction on alcohol sales between 2pm and 5pm is described by industry representatives as an outdated regulation that no longer serves its original purpose. 

 

Originally implemented to prevent alcohol consumption during working hours, APISWA argues that most purchases during this time are now made by foreign tourists rather than local workers. 

 

 

"The ban disproportionately impacts Thailand's premium tourism and hospitality sectors, which thrive on providing seamless experiences to visitors," noted APISWA. "High-value tourists seek premium experiences, and Thailand is competing with destinations like Vietnam, Japan, and Australia, where alcohol sales are unrestricted in tourist zones."

 

The report draws comparisons with other popular Asian tourism destinations:

• Vietnam: With no strict time-based alcohol restrictions in major tourist zones, Vietnam has seen a significant increase in tourist F&B expenditure. 
• Japan: Allows alcohol availability 24/7 with responsible drinking policies, contributing to a robust tourism sector with minimal public intoxication issues. 
• Australia: Balances alcohol availability with strict Responsible Service of Alcohol (RSA) training, supporting a thriving hospitality industry. 

 

In Europe, different cultural norms around alcohol consumption are also highlighted, with Europeans commonly enjoying beer throughout the day and Italians considering alcohol an integral part of mealtimes, typically accompanied by appetite-stimulating snacks.

 

 

Economic Growth Potential and Proposed Reforms

The initiative emphasizes that premium restaurants, beach clubs, and bars suffer revenue losses due to the current restrictions. Lifting the 2-5pm ban, alongside zoning reforms and allowing e-commerce sales, could create additional jobs and support hospitality entrepreneurs by enabling all-day operations and increased staff shifts.  

 

APISWA advocates for:

Lifting the 2-5 PM alcohol sales ban.
Implementing zoning laws where premium F&B outlets in tourist areas are exempt.
Requiring strict ID checks and responsible service training.
Enforcing location-based regulations that limit sales in business districts while allowing them in tourism zones.
Allowing E-commerce sales of alcohol.

 

 

 

Recent Developments

The timing of APISWA's initiative coincides with recent governmental discussions on the issue. On 4 March 2025, the National Alcoholic Beverage Policy Committee, chaired by Deputy Prime Minister Prasert Jantararuangthong, approved legal amendments to facilitate alcohol sales in hotels and entertainment venues.

 

Furthermore, the committee has approved allowing retailers at selected establishments to sell alcoholic beverages on five major Buddhist holidays: Makha Bucha Day, Visakha Bucha Day, Asarnha Bucha Day, Buddhist Lent Day, and the end of Buddhist Lent. This relaxation, expected to take effect on Visakha Bucha Day (May 11), will apply to international airports, entertainment venues, hotels, tourist attractions, and special or international events.

 

Deputy Prime Minister Prasert Jantararuangtong stated, "The alcohol-sale relaxation will help promote the tourism industry, in line with the government's declaration of 2025 as the year of tourism. Foreign tourist districts in Bangkok such as Thonglor and Patpong will benefit from this measure.”

 

He also emphasized that measures will be implemented to ensure public order and prevent underage access to alcohol. These recent actions, including the holiday relaxation, and the ongoing discussions about the 2-5pm ban, zoning, and e-commerce, signal a significant shift towards modernizing Thailand's alcohol regulations.

 

 

 

Call for Action

APISWA is urging the Thai government to continue modernizing its alcohol regulations to align with global tourism markets, enabling premium F&B brands to thrive.

 

"Creating a regulated but flexible alcohol policy will help drive Thailand's competitiveness as a tourism hub," stated APISWA. "For every million tourists, an updated alcohol policy could drive significant additional revenue in the F&B sector."

 

The association argues that the 400,000 million baht restaurant industry has substantial growth potential if the current restrictions are reformed appropriately.

 

As Thailand positions itself to compete more effectively in the global tourism market, APISWA believes that addressing these regulatory challenges is essential to unlocking the full economic potential of the premium food and beverage sector and strengthening Thailand's appeal to high-value international tourists.