TAT, private sector push tourism aid with fuel tax cut and free domestic flights

Puttipong Prasarttong-Osoth, President of the Airlines Association of Thailand (AAT), said that on March 13-14 the association held a meeting with senior executives from its member airlines, Bangkok Airways, Thai AirAsia, Thai AirAsia X, Nok Air, Thai Lion Air and Vietjet Thailand, to discuss the current state of the aviation industry, including airlines’ operating costs stemming from volatile oil prices amid geopolitical tensions in several regions.

These tensions have created uncertainty in global energy prices and could affect the cost stability of the aviation industry.

The association therefore believes the government should consider short-term relief measures to ease the impact on the aviation industry, particularly a temporary reduction in the excise tax on jet fuel for domestic flights.

This would help lower airlines’ operating costs and keep airfares at reasonable levels for the public and tourists, as domestic travel plays an important role in distributing income to the regions.

“Having appropriate support measures at a time when the aviation industry is facing volatility from external factors will help strengthen Thailand’s competitiveness and support long-term economic growth.”

In addition, the meeting also followed up on the progress of key association projects, such as the “special airfare scheme for the 2026 Songkran festival”, under which member airlines are cooperating to add special flights and cut maximum ticket prices by up to 30%.

Meanwhile, a meeting on the impact of security tensions in the Middle East on Thailand’s tourism industry, organised by the Tourism Authority of Thailand (TAT) and attended by private-sector representatives on March 13, reflected a range of views and proposals on tourism promotion measures, particularly in response to a contraction in long-haul visitors from the Middle East, Europe and the United States.

Chai Arunanondchai, President of the Tourism Council of Thailand (TCT), said: “The key strategy at this point is to urgently find replacement markets from short-haul destinations such as China and ASEAN. If possible, we would also like to see promotion measures related to air tickets for travel to secondary cities in Thailand, as this would be another important factor in helping Thailand compete with rival countries such as Vietnam and China.”

Adith Chairattananon, Secretary-General of the Association of Thai Travel Agents (ATTA), said the Chinese tourist market, which remains the number one source of foreign visitors to Thailand, is the industry’s main hope amid tensions in the Middle East.

Based on forward booking figures, although no impact has yet been seen for April-May, with advance seat bookings already at 60%, there are early signs of disruption from higher oil prices.

“The strategy to revive the Chinese tourist market, which Thailand must continue pursuing, is two-way tourism promotion as a win-win strategy. This has helped raise the proportion of Thai passengers on Thailand-China routes to 30-40%, from just 10% before the Covid-19 outbreak. Airlines are now very happy to have a higher share of Thai passengers, as it helps reduce risk. It is a tourism model that can also be extended to other markets, such as the Andaman cluster linked with Malaysia and Singapore, to build more stable tourism.”

As for the European market, travelling through ATTA member companies, it was found that after the Middle East incident, numbers fell by as much as 30%.

Other markets must therefore be sought urgently to compensate, such as attracting travellers from Central Asia to transit in China before coming to Thailand.

In addition, roadshows are planned in the second and third quarters to promote tourism in Taiwan, South Korea, China and India.

Thienprasit Chaiyapatranun, President of the Thai Hotels Association (THA), said March is already the month with the lowest number of Middle Eastern tourists travelling to Thailand, while it is also the downward period heading into the low season for the European market.

Based on meetings with THA, hotel chains with a strong luxury-market base reported that new room bookings this year still exceed cancellations, meaning the overall picture remains positive.

However, short-haul markets still need to be further promoted, for example, through charter-flight support schemes to keep ticket prices affordable, as well as domestic tourism stimulus measures based on a “co-payment” concept similar to the previous “Let's Go Halves” scheme.

Thapanee Kiatphaibool, Governor of the TAT, said the agency will focus on finding replacement markets for lost long-haul tourists by expanding short-haul markets in Asia, including China, South Korea, Japan, India, Malaysia, Indonesia and Singapore, as well as the Commonwealth of Independent States (CIS).

This will be done through a two-way tourism promotion strategy, working with partner countries to encourage travel flows in both directions and reduce risk for airline operators so they do not rely too heavily on one-way traffic.

In addition, TAT will use the remaining budget from the “Thailand Summer Blast” project to support airlines in adding more flights to major and secondary cities continuously.

The deadline for airlines to apply for support has already been extended to July 2026.

TAT will also seek to revise additional conditions to support long-haul market flights for consideration by the new Cabinet.

“And another project that will be revived for submission to the new Cabinet is the Buy International, Free Thailand Domestic Flights scheme. Under this measure, foreign tourists who buy regular-priced international air tickets to Thailand would receive free return domestic air tickets. This project had previously been proposed to the former government, but it was left pending and is still awaiting consideration.”

As for domestic tourism stimulus measures, it is expected that the new government led by the Bhumjaithai Party will definitely push ahead with the “Let's Go Halves Plus” project.

TAT will therefore need to identify ways in which tourism elements can be “plus” or added to the scheme.