Jewellery scheme to dazzle tourists

Jewellery scheme to dazzle tourists

Focus put on tourism revenue, not numbers

A foreigner checks out merchandise at a gems and jewellery fair in Bangkok. The government has proposed a number of incentives to promote the industry this year. PATTARAPONG CHATPATTARASILL
A foreigner checks out merchandise at a gems and jewellery fair in Bangkok. The government has proposed a number of incentives to promote the industry this year. PATTARAPONG CHATPATTARASILL

The government has vowed to introduce more marketing campaigns to lure foreign buyers of gems and jewellery and promote sports tourism in a bid to raise tourism revenue.

Tourism and Sports Minister Kobkarn Wattanavrangkul said the campaigns will promote the government's strategy of focusing more on tourism revenue and less on the number of foreign visitors.

The ministry this year aims for tourism revenue to grow to 2.71 trillion baht, up 8.2% year-on-year, with 1.78 trillion coming from foreign tourists and 934 billion from Thais.

Pongpanu Svetarundra, permanent secretary for tourism and sports, has recently gained an agreement in principle from jewellery-related groups to give cash refunds to visitors, said Mrs Kobkarn.

According to the cash refund scheme, visitors will be allowed a 100% cash refund if they return their jewellery products within 24 hours of purchase.

Those who return their items between 1-30 days will be entitled to a 90% cash refund, while an 80% refund will be offered if they return their goods between 31-45 days. After that, refunds will be at the sellers' discretion.

Currently, 70 jewellery shops have agreed to join the programme, 64 of which are in Bangkok. Four more shops are in Phuket and one each is in Nakhon Si Thammarat and Samut Prakan. She expects the revenue from foreign visitor spending on jewellery products to increase by 8-10% this year from 100 billion baht last year. Chinese and Asean visitors are the focus of the campaigns.

To further promote the industry and support the country's goal of becoming a jewellery trading centre, the cabinet on Jan 17 approved measures, including tax incentives, with the aim of raising gems and jewellery exports to US$17 billion (595 billion baht) over the next three years from $13 billion last year.

Jewellery entrepreneurs will be allowed to enjoy a two-fold corporate tax deduction on expenses incurred while employing skilled workers who are registered with the Skill Development Department.

The tax incentive is meant to attract entrepreneurs to hire skilled labourers to preserve Thailand's uniqueness in jewellery and ornament production.

The cabinet also approved import tariff waivers for raw materials used in jewellery and ornament production and cut tariffs for imported finished products to 10% from 20%.

Individual sellers of raw materials for jewellery are also allowed a 1% reduction of personal income tax, with value-added tax (VAT) exempted for raw material imports. A VAT waiver is also available for registered entrepreneurs who import raw materials or semi-finished products.

The government expected gems and jewellery shipments to fetch $14.3 billion this year and $17 billion in 2019.

Mrs Kobkarn said the ministry is also committed to promoting Thailand as a sports tourism hub in Asean.

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