Thailand draws up measures to boost tourism as stimulus efforts continue
An employee arranges blades for construction in Rayong province, east of Bangkok, Thailand, on Apr 7, 2016. (Photo: REUTERS/Chaiwat Subprasom)
BANGKOK :Thailand will introduce new incentives to boost domestic travel, Finance Minister Ekniti Nitithanprapas said on Wednesday, as the government steps up efforts to revive a sluggish economy amid early signs of improving sentiment.
The incentives, which include soft loans and tax measures, were discussed at a meeting of the economic policy committee and will be put to cabinet for approval next week, Ekniti said.
Tax deductions of up to 20,000 baht ($616.90) will be granted to citizens travelling domestically between October 29 and December 15, he added.
Tourism, a key growth driver, has seen arrivals fall 7.5 per cent year-on-year to 25.1 million so far this year, well below the record of nearly 40 million before the pandemic.
MORE STIMULUS UNDERWAY TO REACH 2.2 per cent GROWTH THIS YEAR
The tourism measures are part of a stimulus package aimed at meeting a 2.2 per cent growth target this year.
The government already launched a $1.4 billion co-payment scheme subsidising living costs for about 20 million people, approved a $49 billion budget for state enterprise investment plan expected to lift GDP by 0.3 per cent, and plans to spend $307 million to buy bad debt.
Thai industrial sentiment rose for the first time in seven months in September amid growing confidence in the government's swift policy rollout, the Federation of Thai Industries said earlier. Sentiment for the next three months was also optimistic, the group said.
Southeast Asia's second-largest economy is projected to expand by between 1.8 per cent and 2.3 per cent this year, the state planning agency said, with growth expected to slow in the second half of 2025 under pressure from U.S. tariffs, high household debt, weak consumption, and a strong baht.
Prime Minister Anutin Charnvirakul's government has a short window to deliver results before he dissolves parliament by the end of January ahead of elections due by April.
($1 = 32.42 baht)
