Thailand Approves Tax Incentives to Boost Domestic Tourism in Secondary Cities

In a move to stimulate domestic tourism during the low season, Thailand's cabinet has approved a series of tax measures aimed at encouraging travel to secondary cities. The measures will be in effect from May to November and are designed to boost economic activity in less-visited areas of the country.

Why this matters: Thailand's efforts to boost domestic tourism in secondary cities have significant implications for the country's economic development and regional growth. The success of these measures could lead to increased investment and job creation in these areas, contributing to a more balanced economy.

Deputy Finance Minister Paopoom Rojanasakul announced the new initiatives, which include tax deductions for firms hosting conventions and seminars, and income tax deductions for expenses incurred for homestays and non-hotel accommodations in secondary cities. These measures are intended to make it more attractive for businesses and individuals to explore these regions.

Prime Minister Srettha Thavisin acknowledged that the government expects a revenue loss of 1.5 billion baht (approximately $41 million) resulting from these tax measures. However, he expressed confidence that the benefits would outweigh the costs, stating, "The measures would cost the government 1.5 billion baht ($41 million) in revenue, but the benefits would be greater."

The tourism sector, which has faced challenges in recent years. Tourism and Sports Minister Sermsak Pongpanich has highlighted the country's weaknesses in infrastructure and services, which have not kept pace with growing demand. The government has pledged to improve Thailand's ranking in the tourism development index during its four-year term.

In related news, Thailand will host the filming of 'Jurassic World 4' from June 4 to mid-July. The production will cover multiple locations, including Bangkok, Krabi, Trang, Phang Nga, Phuket, and Chiang Mai. This project is expected to inject 650 million baht into the local economy, benefiting businesses related to equipment rental, accommodations, venue hire, transportation, and catering services.

The Hollywood production team will take advantage of the Thai government's incentive program, which offers a 20% rebate for international films that spend more than 100 million baht in the country. This incentive aims to attract major film projects and further boost the local economy.

These combined efforts highlight Thailand's commitment to enhancing its tourism industry and distributing tourism revenue more evenly across the country. By incentivizing travel to secondary cities and hosting international film projects, the government hopes to create a more robust and diversified tourism economy.

Key Takeaways

• Thailand's cabinet approves tax measures to boost domestic tourism in secondary cities.
• Tax deductions offered for firms hosting conventions and individuals staying in non-hotel accommodations.
• Government expects a revenue loss of 1.5 billion baht, but predicts greater benefits.
• Thailand to host filming of 'Jurassic World 4', injecting 650 million baht into the local economy.
• Government aims to create a more robust and diversified tourism economy through incentives and infrastructure development.