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Affordable Thai Wine 
Affordable Thai Wine
by Jules Kay
International visitors to
Thailand are often surprised by the high cost of wine in restaurants and
hotels across the country, particularly in popular holiday destinations
like Phuket and Koh Samui. But the signing of an Asean Free Trade
Agreement may soon ease the pain.
Although a good selection of
both new and old world wines is readily available in Thailand, high
import taxes have thus far meant wine is one of the few commodities that
fails to compete on price with western countries. The reasons behind
this are complicated. Some international importers believe the existence
of a burgeoning Thai wine industry is one factor, as high import taxes
allow local producers to compete on price with more established labels
from places like Italy and Australia. Indeed, the local Thai wine
industry has expanded at a rapid rate, seeing around 28% growth in the
last year and accounting for 5-7 percent of the 10 million litres sold.
Sophisticated wine production techniques, foreign trained winemakers and
good marketing to the tourist sector certainly helped boost the
industry, and many believe the fact that wine is sold as a luxury
product also encourages visitors to try local labels without spending
more.
But Thai wine producers are now concerned that the Asean
Free Trade Agreement will damage their sales. Before January 1 this
year, imported wines were subject to a combined import duty and excise
tax of 360 per cent, but under the new AFTA, taxes on wine will fall to
stay in line with other Asean states. A previous trade agreement between
Thailand, Australia and New Zealand saw import duties on wine reduced
by as much as 40%. This year, experts say that the new legislation could
see some imported wines hitting the shelves for as little as 200 THB
(5USD).
Another contributing factor has been the government's
campaign to reduce smoking and drinking amongst Thai citizens. A
voluntary ban was placed on the direct advertising of alcohol back in
2006 and the current administration is considering raising the drinking
age to 20 years old, plus adding graphic warnings similar to those
already used on cigarette packets. What's more, as wine is still only
enjoyed by the Thai middle class, it is priced accordingly, and not
marketed to a wider domestic consumer base.
But all this is
good news for wine lovers either living or visiting Thailand, especially
with well-established suppliers such as Wine Connection and Central
Wine Cellar continually raising the bar when it comes to the range of
quality wines available. These companies stock around 500 labels each,
with everything from value wine boxes to fine European vintage and
outlets in all the major tourist locations. Thai wine is not to be
written off either. Quality labels like Chateaux De Loei, PB Valley Khao
Yai and GranMonte have received worldwide acclaim, while the Thai Wine
Association monitors production and labelling standards, enhancing the
reputation of Thai wineries internationally.
A diverse and
appealing wine list is increasingly important for hospitality providers
in Thailand, especially with so many luxury travellers now choosing
resorts and private villas in destinations like Phuket and Koh Samui. As
wine prices fall, visitors can look forward to ever more diverse and
enticing taste adventures in the Land of Smiles.
Source: http://www.phuketvillasandhomes.com/news/news_528.html
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