Thailand, a tourism powerhouse, has pulled out a strict alcohol regulation card ahead of entering the peak travel season of the year. With the tourism industry in a slump due to a strong baht, the government has introduced a policy that could instead be a headwind for tourism, stirring controversy.
According to the Nihon Keizai Shimbun on the 10th, the Thai government has been enforcing a revised Alcohol Control Act since the 8th. The new bill states that outside the 12 hours of permitted business each day (11:00–14:00, 17:00–24:00), if someone is caught "sitting in a restaurant" and drinking, both the seller and the consumer will face a fine of up to 10,000 baht (about 450,000 won). Moving beyond the existing rules that punished only the seller, the scope of punishment was swiftly expanded to consumers. Tourists are no exception.
The Thai government put forward the rationale of reducing indiscriminate drinking. Thailand is paying a massive social expense due to chronic drinking problems. According to a 2023 report by the World Health Organization (WHO), the annual per capita alcohol consumption among those aged 15 and older in Thailand is an average of 8.3 liters, ranking second in Southeast Asia after Vietnam (8.7 liters). This is far above the global average (5.8 liters). In particular, drunk driving is cited as the No. 1 cause of traffic accident deaths in Thailand.
Thai public health groups have consistently pressed the government for strong regulations. Widely known as a Buddhist country, Thailand is notably stricter on alcohol sales than neighboring countries. By law since 1972, alcohol sales are banned from 2 p.m. to 5 p.m., and from midnight to 11 a.m. the next day. The vast majority of convenience stores and supermarkets still strictly follow this law. However, in restaurants, which account for a large share of alcohol consumption, the law has effectively become a dead letter. In Thailand, where tourism accounts for an unusually large share of gross domestic product (GDP), strengthening restrictions on restaurant alcohol sales would negatively affect the livelihoods of many people. Citing the civic group Alcohol Watch Network, local outlet PBS reported, "The clause banning sales from 2 p.m. to 5 p.m. has long existed, but it was toothless because consumers could not be punished," adding, "The new bill is the minimum step to secure effectiveness."
Thailand's tourism industry fell into immediate confusion. As of 2019, 18% of gross domestic product (GDP) in Thailand comes from the tourism industry. That is far higher than Korea's roughly 3%. Thailand's tourism industry is currently suffering a double whammy of a strong baht and the rise of competing destinations.
The value of the Thai baht has shown the fastest recovery in Asia since COVID-19 and remains strong. When a currency appreciates, travel costs rise for foreign tourists. The number of foreign visitors to Thailand has already decreased noticeably compared with before. According to the Tourism Authority of Thailand (TAT), from Jan. 1 to Sept. 21 this year, about 23.45 million foreign tourists visited Thailand, down 7.44% from the same period last year. In particular, coinciding with the point when the U.S. dollar began to weaken, visitors from major countries turned to a decline in the second half. TAT predicted that if this trend continues, tourism revenue this year will fall 15%–17% short of the target.
Vietnam, by contrast, is rapidly drawing tourists away from Thailand with a simplified visa policy and low prices. With aggressive marketing such as increasing low-cost flights and easing visa rules, the Vietnamese government has attracted close to 14 million foreign visitors annually.
Licensed hotels and resorts, clubs and other entertainment venues, and international airport lounges are excluded from this alcohol regulation. But they are a tiny minority. Small operators of ordinary restaurants and bars, which most tourists frequent, are expected to suffer a major blow to their livelihoods. Saga Luangwattanakul, chair of the Khaosan Road Merchants Association, said in a local media interview, "For example, if at 2:01 p.m. there is about half a beer left on the table, it means both the consumer who was drinking it and the establishment could face a fine of up to 10,000 baht," adding, "If the government does not respond quickly, foreign visitors could be lost to competing destinations." Embassies of major countries including Australia, the United Kingdom and the United States are already said to have warned their citizens about the restrictions.
Thailand's tourism industry plans to ask relevant ministries, including Prime Minister Anutin Charnvirakul, to extend service hours or designate specific zones to match tourist behavior patterns. Thanawat Phonvichai, president of the University of the Thai Chamber of Commerce (UTCC), told the Bangkok Post, "This regulation will directly affect spending by tourists during the most important peak season of the year."