Bangkok: The government is unlocking the potential of 28 regional airports by extending leasehold rights to areas for up to 30 years, aiming to attract investment, increase government revenue, and stimulate the local economy.
According to Thai News Agency, Ms. Lalida Periswiwatana, Deputy Spokesperson for the Prime Minister's Office, revealed that the government is moving forward with upgrading transportation infrastructure and regional economic development by supporting the enhancement of the capabilities of all 28 regional airports under the Department of Airports (DOA). These airports will serve as key mechanisms for connecting travel, tourism, and investment under the "Airport for Regional Development" approach, aiming to distribute prosperity to the regions and generate sustainable national income.
The deputy spokesperson stated that Mr. Patarapong Pataraprasit, Deputy Minister of Transport, has continuously monitored and promoted measures to increase revenue for regional airports, including both aeronautical revenue and non-aeronautical revenue. In the past, the Ministry of Transport and the Department of Airports have collaborated with domestic and international airlines to showcase the potential of regional airports to attract new flight routes, inter-regional routes, and international routes. This has significantly improved travel connectivity and stimulated the local economy.
Ms. Lalida stated that, regarding the management of commercial areas within airports, Mr. Phatarapong urged the Department of Airports, in collaboration with the Department of Treasury, to find solutions to overcome bureaucratic limitations that delayed the process of attracting new businesses and investments. This led to the signing of a Memorandum of Understanding (MOU) between the Department of Airports, Ministry of Transport, and the Department of Treasury, Ministry of Finance, granting the Department of Airports the authority to manage state-owned land within regional airports more efficiently and flexibly.
The deputy spokesperson stated that the key points of the MOU are the authorization for the Department of Airports to directly sign lease or reciprocal agreements with the private sector for projects with asset values not exceeding 500 million baht, and the extension of the land use period from the previous limit of 3 years to a longer period more suitable to the investment nature. Areas within airports can be leased for a maximum of 10 years, while areas outside airports can be leased for a maximum of 20 or 30 years, depending on the size of the area and the type of activity undertaken. Furthermore, it empowers the Department of Airports to directly take legal action against lessees who violate contract terms.
Ms. Lalida further stated that this improvement to the commercial area management mechanism will help reduce bureaucratic procedures, increase the speed of bringing shops, services, and facilities into the airport, promote a favorable investment climate, increase business opportunities for local entrepreneurs, and generate more revenue for the government. At the same time, it will be a key driver in developing the regional economy and tourism.
"The government believes that empowering and streamlining the management of regional airport areas will unlock investment potential, attract new businesses, create added economic value, and truly elevate regional airports into development hubs in their respective regions," she added.