Govt urged to declare U-Tapao, Eastern Aviation City duty-free zone

Aim attract private operators to invest in mega-project in Rayong province

U-Tapao International Aviation Company (UTA) has urged the government to declare the U-Tapao International Airport and Eastern Aviation City a duty-free zone to attract private operators to invest in the 6,500-rai (1,040-hectare) mega-project in Rayong province.

UTA was set up by BBS Joint Venture Group after it won a bid for the U-Tapao International Airport and Eastern Aviation City development project in 2020. The group comprises Bangkok Airways, BTS Group Holdings, and Sino-Thai Engineering and Construction.



Puttipong Prasarttong-Osoth, president of Bangkok Airways, said on Monday that making U-Tapao Airport a duty-free zone would promote services related to imports, exports, and goods-processing without the imposition of taxes, providing convenience to operators similar to airports of Hong Kong or Singapore.

He added that a duty-free zone at Eastern Aviation City would attract private investors in various commercial activities, including the future entertainment complexes with legal casinos, a plan that the Cabinet has recently approved in principle.

Puttipong said the original development plan submitted to the Eastern Economic Corridor Office (EECO) contained no details on a casino, but this could be adjusted to increase investment in the areas.

The plan included development of world-class shopping malls, MICE (meetings, incentives, conferences and exhibitions) facilities, an indoor arena, hotels, a Formula One racetrack, a medical-tourism hub, and restaurants.

"We will make this place an interesting city, a tourist destination where people come to eat, shop, and explore,” Puttipong said. “There will be various entertainment options that we believe are feasible and attractive. This includes high-quality restaurants, duty-free shops, a stadium or arena for world-class performances, including [motor] race events."



EECO secretary general Chula Sukmanop confirmed that the Cabinet has approved making the Eastern Aviation City project a duty-free zone. In practicality, he said, the EECO would discuss with the Customs and Excise departments a plan to announce the duty-free zone in selected areas of the EEC to cover the project.

“This will allow all businesses in the project to enjoy tax privileges, including hotels, restaurants and commercial shops, most of which require high investment,” he said.

Chula added that the EECO is also working on a plan to let UTA co-manage the current passenger terminal at the U-Tapao Airport together with the Royal Thai Navy (RTN). This would allow the company to prepare future aviation and marketing plans for when the airport development project completes in 2029, ensuring a seamless transition of management from RTN to the UTA, he said.

(2025/02/04-00:00)