Thailand is launching a makeover to position itself as Asia's shopping paradise to lure foreign tourists and their wallets away from more established regional rivals Hong Kong and Singapore.
Friday's glitzy opening of the 15 billion baht (US$366 million) Siam Paragon culminated a year of shopping-center expansion in Bangkok as the kingdom entered its peak tourist season this month.
The campaign aims to promote Thailand as a country with charms of its own, pulling in tourists who are looking not only for foreign luxury brands but also ancient temples and lush beaches.
"Thailand is always a tourist destination. But it's never been a shopping paradise," said Supaluck Umpujh, vice chairman of Siam Paragon Development Co Ltd.
"We are repositioning our country to become a regional shopping destination like Hong Kong and Singapore. I think we have a lot of advantages. Thailand is not an island. We have very beautiful tourist attractions already," she said.
Supaluck estimated that 35 percent of Siam Paragon's total revenue would come from tourists from Japan, South Korea, Hong Kong, Taiwan and the Middle East.
In Thailand, foreign tourists spend nearly 30 percent of their expenses on shopping, amounting to 5,000 baht to 7,000 baht per person, according to Kriengsak Tantiphipop, chief marketing officer of Siam Paragon Development.
The figure lags far behind 100,000 baht in Singapore and 150,000 baht in Hong Kong, and Kriengsak said Siam Paragon was working with the government to turn the mall into a duty-free zone to encourage tourists' spending.
Catering to foreign tourists and affluent Thai consumers, Siam Paragon, which says it is the largest mall in Southeast Asia, features some 300 high-fashion boutiques, including France's Chanel and Italy's Dolce and Gabbana.
The complex, which also includes the aquarium Siam Ocean World, expects to receive more than 100,000 visitors a day, with sales projected at 10 billion baht in the first year.
Tourism Authority of Thailand governor Juthamas Siriwan said Siam Paragon would no doubt bring extra spending from tourists, who account for 6 percent of Thailand's gross domestic product.
"It will definitely boost the economy as it encourages tourists to spend more money," the governor said.
But some analysts voiced skepticism as to whether Siam Paragon would be a genuine shot in the arm in a still developing economy.
"If you want to see the retail market boost the economy, you have to have more spending from people," said Ninat Wongsangiem, a retail researcher at Capital Nomura Securities. "Inflation is still very high and people hold their spending.
Thailand's inflation rate stood at 5.9 percent last year.
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