Tourism boosts King Power results

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Duty-free operator King Power (Thailand) Group this week reported a sales increase of 4.8% for the second quarter 2001 reaching $26.3m in the period. For the six months ended 30 June net revenues were $57.9m, an increase of 9.9% on 2000.

In a statement King Power said the main factor driving the growth was the continuing expansion of inbound tourism in Thailand. According to Bangkok International airport, its number of passengers increased 6.7% for the second quarter 2001 and 7.5% for the six month period ended 30 June.

In addition to lower margins resulting from King Power's continuing sales promotion campaign, a decline in net profit was the result of increased selling and administrative expenses, plus research and development costs involved in targeting and marketing new products to specific traveller groups.