Thailand launches mega program: boost domestic travel with tax advantages!

Thailand launches mega program: boost domestic travel with tax advantages!

A lot is currently happening in Thailand to get the domestic tourism industry back on track. After an 8% decline in domestic travel in recent months, the Thai government has rolled out a strategic stimulus package aimed at revitalizing domestic tourism and strengthening the regional economy. Loud Travel and Tour World The package is being pushed forward by the Ministry of Finance together with the Economics Cabinet and is due to be presented to the entire Cabinet next week.

What exactly does this package provide? First of all, from October 29 to December 15, 2025, domestic tourists will benefit from tax breaks: up to 20,000 baht in income tax can be deducted for travel-related expenses. Different deduction rates apply, depending on whether the trip is to large or smaller cities.

Boost public spending

Another pillar of the program is to accelerate public spending. Authorities and state-owned companies must spend at least 60% of their allocated budgets to promote the economy by January 2026. In total, the budget amounts to 6 billion baht, which is expected to help strengthen GDP by the end of the year. Finance Minister Ekniti Nitithanprapas also hopes that these measures will improve the economic situation, which experts consider to be precarious.

But the infrastructure is also suffering from the decline in the tourism sector. Therefore, a double tax deduction was introduced for renovation costs of hotels in secondary cities to optimize the quality of accommodation. These incentives are valid until March 2026 to encourage the renovation of hotels in less visited regions.

Support for local businesses

In addition to promoting domestic tourism, the government is also planning initiatives to increase spending on conferences and events. These measures aim to support the affected companies and enable new sources of income. A possible 5% tax rate for entertainment venues could also provide a further boost, reducing costs and increasing attractiveness.

The entire initiative is part of a broader plan to return the country's economy to pre-pandemic levels. The stimulus package seems to be the solution to not only achieve short-term success, but also ensure long-term development. Loud Bloomberg Law This also includes the possibility for domestic tourists to use their travel expenses to reduce taxable income.

The opening of a tourism stimulus program on October 29, 2025, which will come into force together with the “Khon La Khrueng Plus” co-payment program, will support the efforts, such as Thailand Tip reported. With a total budget of 44 billion baht and an affordability subsidy of 2,400 baht for taxpayers, the goal is to sustainably increase foreign visitor numbers and tourism revenue.

The next few months will be crucial to find out whether these measures actually have the desired effect. One thing is certain: Thailand has a good hand in getting on the road to economic recovery.