Photo credit: Varuth Hirunyatheb
King Power is restructuring its duty-free business by closing three downtown outlets in Bangkok and Pattaya, while also implementing a voluntary redundancy program for staff. The company aims to streamline its operations to achieve better long-term efficiency, according to Nitinai Sirismatthakarn, CEO of King Power Corporation.
The closures of King Power Mahanakhon, King Power Srivaree, and King Power Pattaya are seen as practical responses to the evolving tourism landscape. These locations primarily targeted tour groups, but revenues have declined as more travelers opt for independent sightseeing rather than organized tours, Nitinai explained.
Meanwhile, duty-free sales at airports remain unaffected, as they continue generating income from individual travelers. King Power Duty Free Co, the company’s affiliate, is also seeking to renegotiate contracts at five airports operated in partnership with Airports of Thailand Plc (AoT).
Tourism to Thailand has fallen approximately 5% compared to the same period in 2024, with Chinese arrivals dropping by about 33%. This decline has negatively impacted AoT’s shares on the Stock Exchange of Thailand, which have decreased by 35.6% since the beginning of the year. Concerns about reduced revenue from King Power have also unsettled investors.
Nitinai, who previously served as AoT president before becoming King Power’s CEO on June 4, emphasized that the decision to cut costs is unrelated to ongoing negotiations with AoT. He noted that many companies are currently adjusting their operations in response to market conditions.
The redundancy program offers employees voluntary resignation options with compensation in accordance with labor laws and their years of service. The company has not set specific targets for workforce reduction. Employees at the closed branches who wish to remain with the company will be offered relocation opportunities.
Founded in 1989, King Power is Thailand’s largest duty-free retailer. Recently, AoT approved an extension allowing King Power Duty Free to pay overdue fees in installments for three of its airport contracts, with some contractual minimum benefits deferred for up to eight months. Earlier this year, King Power attempted to terminate its contracts at five airports, citing declining tourist arrivals as the primary reason.