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THAILAND plans to introduce a co-payment package or subsidy for tourism in May 2025. The package is aimed at promoting domestic travel during the low season.
According to Tourism and Sports Minister, Sorawong Thienthong said the tourism promotion package for Thai citizens could only start in May after receiving the green light from the cabinet. Under the scheme, a traveler will only pay half of his or her travel expenses, with the rest being covered by the government. The scheme is designed for domestic tourism only with applicable conditions.
Budget of IDR1.7 trillion
Sorawong said the ministry is still seeking the government’s approval to use its central budget for the travel subsidy program. The initial phase of the program is estimated to cost 3.5 billion baht or about IDR1.7 trillion. The funds are expected to finance the holiday trips of 1 million travelers.
The fifty-fifty payment initiative was launched in 2020 when General Prayut Chan-o-cha led the country. The program, called Khon La Krueng, offers participants a 50% discount on food, beverages and general merchandise.
In the same year, Prayut’s government also introduced the “We Travel Together” accommodation subsidy program to promote local tourism. At the time, the swine flu pandemic had crippled global tourism and international travel. The program was called Thai Teaw Thai.
Sorawong indicated that there would be a name change for the new edition of the tour packages, according to the Bangkok Post. This is because the new tour packages will be issued under the administration of Prime Minister Paetongtarn Shinawatra.
Stabilizing the economy after the pandemic
Thailand has been struggling with a prolonged economic downturn. After a surge in international visitors after the pandemic failed to revive the economy, the government is now doubling down on domestic tourism.
The 50% room and board subsidy is expected to encourage more Thai tourists to explore the country, while providing much-needed revenue for hotels, restaurants and local businesses.
The new subsidy plan is expected to boost hotel occupancy rates in key tourist destinations. Hotels and resorts are likely to see higher bookings, especially during the slow months of May and September. Local businesses, especially restaurants, travel agencies and transportation providers, will also benefit from increased spending, helping to stabilize the post-pandemic economy.
Alternative Destinations
With a 50% discount on travel costs, the initiative is expected to encourage tourism to less explored areas, including smaller provinces and secondary cities. This is in line with Thailand’s long-term goal of promoting sustainable and diversified tourism.
The low season for the country’s tourism sector runs from May to September. The ministry hopes that the joint payment package will encourage Thais to travel and spend more. [sources/photo special]
