King Power Corporation is downsizing its duty-free business by closing three downtown branches in Bangkok and Pattaya and introducing a voluntary redundancy programme for employees, chief executive Nitinai Sirismatthakarn said.
The closures — King Power Mahanakhon, King Power Srivaree, and King Power Pattaya — come as revenue from group tours declines, with more tourists now travelling independently. Airport duty-free outlets, however, remain stable as they rely on individual passengers.
The company’s affiliate, King Power Duty Free Co, is also negotiating contract adjustments with Airports of Thailand Plc (AoT) for operations at five airports. Falling foreign tourist arrivals, down 5% this year and led by a 33% drop in Chinese visitors, have pressured both King Power’s revenues and AoT’s share price, which has plunged 35.6% in 2025.
Mr. Nitinai, a former AoT president who became CEO of King Power in June, said the cost-cutting move is part of wider adjustments businesses must make in changing market conditions. Employees opting for voluntary redundancy will receive compensation under labour laws, while staff from the closed outlets may be reassigned to other locations.
Founded in 1989, King Power remains Thailand’s largest duty-free operator. Last month, AoT approved extended payment terms for three contracts covering five airports, while earlier this year King Power sought to exit those contracts, citing the downturn in tourist arrivals.
