- Thailand introduces five new initiatives to boost local tourism and prevent economic slowdown.
- Tax breaks and incentives offered for domestic travel, conferences, and hotel renovations.
- Programs expected to benefit 140,000 people and 1,500 companies, boosting spending significantly.
Thailand has sanctioned five fresh initiatives to enhance local tourism in the last quarter to avert an economic slowdown before the year concludes, stated Finance Permanent Secretary Lavaron Sangsnit. Lavaron mentioned that the efforts are designed to encourage local travel among Thai citizens. He pointed out that domestic tourism significantly impacts the national economy, representing approximately 24% of private consumption and 14% of GDP.
The five initiatives that promote tourism consist of personal income tax breaks for local travel costs, corporate tax reductions for domestic conferences and training, accelerated government budget allocations for official gatherings and training, tax incentives for renovating hotels, and continuous excise tax cuts for entertainment venues.
Through personal income tax deductions for domestic travel expenses, individuals may deduct a maximum of 20,000 THB (607 USD) in actual costs for domestic trips, which includes lodging and dining services, from October 29 to December 15. Secondary destinations encompass 55 provinces, including remote districts in major areas such as Galyani Vadhana in Chiang Mai. The initiative is projected to aid roughly 140,000 individuals, resulting in an estimated 2.8 billion THB in expenditures.
Also Read: Singapore, Thai, Malaysia Airlines Boost Travel with Cheers Group
Companies can claim deductions for real costs related to domestic seminars and training, including venue rental, lodging, and transportation, for events taking place from October 29 to December 15. Costs in secondary cities can be deducted at double the real expense, while in primary locations, they can be deducted at 1.5 times, given that electronic tax invoices are provided. Approximately 1,500 companies are anticipated to take part, collectively spending 315 million THB.
Through a preloaded government budget allocation for official gatherings and training, governmental bodies are directed to hasten expenditures on meetings, training, and seminars for fiscal 2026, guaranteeing that no less than 60% of the designated budget is disbursed between October 2025 and January 2026.