They say the law would cost all industries involved more than Bt100 billion and should be screened by an elected government.

"We're puzzled as to why the government has failed to listen to the arguments put forward by experts in the business sectors directly affected by this draft legislation," said Varin Thiemcharas, chairman of the Law and Social Committee of the Federation on Alcohol Control of Thailand (Fact). Fact is a gathering of alcohol companies and others operating related businesses, such as hotels and restaurants.

He said the proposed law had not touched on any revisions to the current tax structure for alcohol, nor had its proponents  considered any measures to assist those damaged by the legislation.

"It is vitally important that legislators recognise the social and economic impact of this draft bill. We ask NLA members to study in detail the whole issue of alcohol abuse and then ask whether this bill really does address the problem. It is clear the NLA needs to develop and implement policies that do indeed tackle the real social issues linked to alcohol abuse and which at the same time balance the importance of protecting the minority with the fundamental need to maintain freedom of choice for the majority," added Varin.

He said he would like to see legislation that was fair to all stakeholders in the industry and allowed all players to share their views.

Wimonwan Udomphorn, Fact's Ethics Committee chairman and a representative of alcohol producers and distributors, said the new law would hurt businesses, both producers and distributors of alcohol products, because they could not communicate any marketing messages to consumers.

"However, those operators will move to other marketing formats, such as shifting their media and marketing budgets to foreign media and events like sports and concerts, and then broadcasting them back to Thailand. Failing to communicate their brand to local consumers, many players will allocate their marketing budgets to price-dumping activities, which will in return stir higher consumption. The quality of those alcohol products will drop as those players compete on price," said Wimonwan.

She gave the example of Johnnie Walker, which has spent almost Bt60 million on local media annually, together with Bt200 million on local marketing activities. Under the new control bill, those media and marketing budgets might be moved to international media and activities. Some of the money would be used by the company for price-dumping strategies to fight other products.

Parames Ratjaiboon, honorary chairman of the Advertising Association of Thailand, said the Bt2.6-billion media budget spent annually by alcohol companies would disappear as it shifted to other communications formats.

"Those in alcohol businesses will adjust the way they communicate with consumers, such as word-of-mouth and virtual marketing. It could lead to what they call 'ambush marketing' by taking advantage of any loopholes in the new legislation," said Parames.

Advertising and Sign Producer Association chairman Noppadon Tansalarak said the new controls on alcohol products would have a strong impact on small producers of mini light boxes and signs at pubs and restaurants that are sponsored by alcohol companies. While producers of the boxes would see a drop in business, restaurants and pubs would have to invest in new ones.

Thai Retailers' Association senior adviser Suwit Kingkaew said the proposed ban on sales within a 500-metre radius of temples was impractical in some major cities like Chiang Mai and Pattaya and on Koh Samui, where temples are located in almost every alley.

Association of Thai Domestic Travel president Charoen Wangananont said Thailand's proposed alcohol controls could shave 10 per cent off the Bt800 billion the tourism industry is expected to earn this year.

"The law would make it inconvenient for foreign tourists to find alcoholic beverages. Tourists spend 30 per cent more on beverages than does the average resident," said Charoen, adding that almost 70 per cent of foreign travellers consumed alcohol while staying in Thailand.

He said some tourists could decide to move their holidays to neighbouring countries, such as Vietnam, Malaysia and Singapore, where the drinks are more free-flowing. "We estimate 10 per cent of tourism revenues in Thailand could disappear," he said.

Thai Wine Association president Visooth Lohitnavy predicted the new control on alcohol products would hurt the local wine industry, because it could not compete with international players.

Kwanchai Rungfapaisarn

The Nation