Bangkok--6 Jul--Hill+Knowlton Strategies
Summary
Declaration does not address economic impact – approximately 125,000 jobs at-risk
Declaration does not address unintended impact, such as shopping malls no longer being able to sell beverage alcohol.
Declaration does not address underage consumption, simply shifts the problem elsewhere.
On June 18, the Alcohol Beverage Control Committee (ABCC) approved a draft declaration on the suspension of all beverage alcohol sales in a 300-meter radius around universities and tertiary academic institutions. The draft is now set to be proposed to the National Alcoholic Beverage Policy Commission on 3 July for further approval.
A network of businesses comprising 3,400 members of the Thai Retailers Association, Thai Hotel Association, Thai Food Traders Association, Khaosan Business Association, Thai Wine Association and Thai Alcohol Beverage Business Association hereby states that the current draft declaration is harmful to local businesses and will have a material negative impact on employment. In essence, the declaration would make certain areas completely off-limits to the sale of beverage alcohol, and there would be unresolved issues regarding the exact definition of the 300-meter radius in practice. The ambiguous draft does not appear to take into account its impact on business, employment, tourism and the economy. Sales of beverage alcohol are not limited to just entertainment and service venues. Instead, sales also take place via retailers, wholesalers, shopping malls, restaurants and food outlets, hotels and tourist attractions as well as the premises of the manufacturers, importers and manufacturing facilities. Additionally, the draft was developed without well-rounded input from all stakeholders and, if implemented, could cause potential complications and unfair harm to ethical businesses as well as the general public.
We would like to express our concern that the draft could cause severe negative impact to the business sector as well as Thai society in general. Its enforcement could lead to the closure of entertainment and service venues, while the cessation of alcoholic beverage sales – or forced relocation – among shopping malls and restaurants would have considerable effects on each business' ability to compete and carry out various activities, eventually leading up to job cuts that would affect not only the departing employees but also their families. Our initial estimates indicate that 125,000 jobs will be lost immediately upon the enactment of this declaration. Furthermore, the heavy-handed measure will lead to further volatility and instability and could lower the confidence among domestic and international investors alike before culminating in long-lasting socioeconomic damage.
Additionally, the draft fails to directly address the root cause behind the issue of underage drinking. The declaration concerns a suspension of sales, not consumption. The network believes that the current ban on sales of beverage alcohol to minors below 20 years of age is already an effective measure for tackling underage drinking and even carries a heavier penalty for offenders, although there remains work to be done in terms of strict enforcement and encouragement of responsible conduct among buyers and sellers.
For these reasons, the network hereby declares its opposition to the ABCC's draft declaration on the suspension of all beverage alcohol sales in a 300-meter radius around universities and tertiary institutions. Furthermore, we propose that any and all future laws pertaining to beverage alcohol are developed with full consideration of their impact, taking into account the opinions of all connected stakeholders, in order to ensure that the resulting laws are truly effective at tackling the issues that arise from improper alcohol consumption.
The network stands by its commitment to support government policies that prevent underage consumption of beverage alcohol through the use of appropriate, fair and effective measures. The network is also committed to create among its members widespread understanding in the dangers of improper beverage alcohol consumption behaviors and encourage efforts to combat the issue. We are ready to work alongside the public sector to implement an integrated, sustainable solution to these issues without violating the rights of ethical businesses and consumers who have made an informed choice to drink responsibly.