Thailand is setting new incentives for tourism – hope for an economic turnaround!

Thailand is setting new incentives for tourism – hope for an economic turnaround!

The economic situation in Thailand is becoming increasingly precarious. Tourism, long a mainstay of the national economy, is battling a noticeable decline. The Thai government has now announced new measures to stimulate the domestic market and promote domestic tourism. Finance Minister Ekniti Nitithanprapas took the floor on Wednesday to revive the flagging economy, announcing a series of initiatives to be presented to the Cabinet this week. These measures include low-interest loans as well as tax relief offering deductions of up to 20,000 baht (approximately $616.90) for travel within the country between October 29 and December 15.

Let's take a look at the numbers: In 2025, Thailand saw a 7.5 percent decline in visitor numbers to 25.1 million compared to the previous year. This is a significant decline, especially considering that before the pandemic, nearly 40 million international travelers visited the country. This situation not only impacts tourism revenues, but also contributes to overall economic uncertainty. According to [schöenes-thailand.at](https://www.schoenes-thailand.at/2025/06/01/thailands-wirtschaft-am-abgrund-der-einbruch-im-tourismus-laesst-den-lasten- Growthsmotor-stottern/), the Thai economy is in one of the worst crises in decades as investments, the Consumption and exports lose momentum.

A waterfall of challenges

The forecasts for gross domestic product (GDP) have been drastically revised downwards. Instead of the originally expected 3.3 percent, the government is now considering a growth rate of 1.8 to 2.3 percent. The International Monetary Fund (IMF) and the World Bank estimate growth at just 1.6 to 1.8 percent. As Statista reports, revenue from the tourism sector amounted to over 172 billion Thai baht in December 2024. However, there are concerns that Thailand will not be able to emerge from the crisis quickly enough as the tourism industry is no longer the sole solution to the economy's structural problems.

The effects are real and noticeable: a decline in the number of foreign tourists has been observed in three consecutive months since February 2025. This represents a real value loss of 186 billion baht, which directly impacts tax revenues and further weakens domestic consumption. Experts' assessment suggests that domestic tourism alone is not able to overcome the existing economic challenges.

The government's response

To deal with the challenges, the Thai government is planning a comprehensive strategy. This includes a $1.4 billion co-payment program aimed at supporting around 20 million people to ease pressure on budget revenues. Nevertheless, confidence in the economy remains fragile. The government is eyeing Prime Minister Anutin Charnvirakul to deliver results in a tight window before parliament is dissolved by the end of January.

Concerns about a liquidity-related crisis in the corporate sector are growing, particularly with the impending need to refinance over 200 billion baht of corporate bonds in the third quarter. This situation is reminiscent of the financial crisis of 1997. For Thailand, it is clear: a turnaround is necessary, and the new incentives to promote domestic tourism could be the starting signal for the country to get back on its feet.

Now it's time to stay vigilant and follow upcoming developments with a watchful eye. Thailand, one of the leading travel destinations worldwide, is known for its cultural diversity, beautiful landscapes and rich cultural heritage. But in order to continue to exploit these treasures, a stable economic basis is required in the near future. This is the only way we can overcome the challenges and preserve the beauty of Thailand for future generations.