The government has approved five new measures to boost domestic tourism in the final quarter to prevent the economy from slowing down before the year’s end, according to finance permanent secretary Lavaron Sangsnit.
Mr Lavaron said the measures are designed to encourage more Thais to travel domestically, noting that local tourism plays a major role in the national economy, accounting for about 24% of private consumption and 14% of GDP.
He warned that without intervention, domestic tourism will contract by 2.7% this year, compared with an 8.4% expansion in 2024.
The five tourism stimulus measures approved by the cabinet this week include personal income tax deductions for domestic travel expenses, corporate tax deductions for domestic seminars and training, front-loaded government budget disbursement for official meetings and training, tax incentives for hotel renovations and extension of excise tax reduction for entertainment venues.
With personal income tax deductions for domestic travel expenses, individuals can deduct up to 20,000 baht in actual expenses for domestic travel — covering accommodation and restaurant services — between Oct 29 and Dec 15.
The first 10,000 baht can be supported by either paper or electronic tax invoices, while the second 10,000 baht must have electronic invoices. Deductions are capped at 1.5 times the amount spent in secondary provinces and one time in primary provinces.
Secondary destinations include 55 provinces, with remote districts in major provinces such as Chiang Mai’s Galyani Vadhana also qualifying. The scheme is expected to benefit around 140,000 people, generating approximately 2.8 billion baht in spending.
For corporate tax deductions for domestic seminars and training, companies can claim deductions for actual expenses — such as venue rental, accommodation, and transport — for events held from Oct 29 to Dec 15. Expenses in secondary cities can be deducted twice the actual cost, and 1.5 times in major destinations, provided electronic tax invoices are issued. Around 1,500 firms are expected to participate, with a combined spending of 315 million baht.
With a front-loaded government budget disbursement for official meetings and training, government agencies are instructed to accelerate spending on meetings, training, and seminars in fiscal 2026, ensuring at least 60% of the allocated budget is disbursed from October 2025 to January 2026.
Events should prioritise secondary provinces. Normally, only 10-20% of such budgets are used in the first quarter.
Winit Wisetsuwannaphum, director of the Fiscal Policy Office, said the combined effect of these measures would raise GDP by about 0.04% this year.