Retail, property and tourism sectors push for “quick-win” measures to boost Thai economy

Business leaders in Thailand’s retail, property and tourism sectors have urged the new government under Prime Minister Anutin Charnvirakul to take immediate action to stimulate the economy and support key industries. They have proposed a set of “Quick Win” measures for urgent consideration, aimed at generating tangible economic results.

Nat Wongpanich, president of the Thai Retailers Association, said the next three months are a critical period for short-term measures to create a concrete economic boost. Thailand’s retail industry alone is valued at more than 4 trillion baht, forming a vital link between production, services and millions of jobs. The association proposed several priority initiatives:

1. Spending boost: Expand consumer spending through upgraded “Khon La Khreung” (Let’s Go Halves) schemes, covering all types of retailers and increasing daily spending limits from 150 to 300 baht, with a monthly ceiling of 1,500 baht for October and November. Phase 2 of the “Easy e-Receipt” programme is also recommended for October–December, covering general merchandise, OTOP products and eco-friendly goods, expected to circulate more than 100 billion baht in the economy.

2. Tourism shopping incentives: Position Thailand as a “Shopping Paradise” for tourists. Proposals include reducing lifestyle import taxes from 20-30% to 10-15%, introducing instant VAT refunds of 7% for purchases over 3,000 baht at major shopping districts, and extending Russian tourist visas from 30 to 45-60 days to match travel habits of high-spending visitors.

3. Employment support: Promote flexible “hourly employment” schemes to reduce unemployment among students, seniors and informal workers, while allowing retailers to manage labour costs more efficiently, improve service during peak hours, and strengthen Thailand’s labour market.

The association emphasised that these measures could be implemented immediately, generating multiplier effects and helping revive the country’s long-stalled economic growth.

Three property associations push “Quick Win” measures

Thailand’s real estate sector is facing its lowest point in a decade. The Thai Condominium Association, Thai Real Estate Association, and Housing Business Association have joined forces to propose three urgent “Quick Win” measures aimed at stimulating economic recovery, coinciding with the year-end housing and condominium expo.

Prasert Taedullayasatit, president of the Thai Condominium Association, said the property sector remains a key driver of GDP, accounting for 8-12% of the economy and supporting over 1 million jobs. However, since the third quarter of 2024, home and condominium sales have plunged to a 10-year low. While many had expected a rebound in the second half of 2025, second-quarter figures fell short of projections, highlighting a deeper-than-expected downturn.

The associations have therefore proposed three short-term “Quick Win” measures:

1. Expand transfer and mortgage fee reductions without limit – Previously capped at residences priced under 7 million baht, the measure would now cover all price ranges to unlock purchasing power across the market. This is intended to accelerate property transfers and clear excess inventory before the end of 2025, or within the first four months of the new government, a period considered critical for next year’s market trajectory.

2. Cut policy interest rate by 0.50% – With households and investors still cautious, lower financing costs are crucial. The associations recommend the Monetary Policy Committee (MPC) reduce the policy rate by 0.50% to signal relaxation to commercial banks. Historical cases show that when the MPC reduced rates by 0.25%, private banks quickly followed suit.

3. Additional short-term plans – Beyond the letter submitted on 8 September, the associations plan to meet PM Anutin Charnvirakul to exchange further policy proposals and collaborate on long-term measures in the future.

Beyond policy measures, a key mechanism to revive the market in the year-end period is the 48th Home and Condo Expo, taking place from 30 October to 2 November. Its highlight, the “Fast Track – Express Lane for Homebuyers” strategy, is designed to make every step of home purchasing easy, fast, and accessible.

“If the government implements timely measures, this expo will ignite hope among buyers and restore confidence for developers,” Prasert said.

Restoring foreign confidence and boosting domestic tourism by year-end

Thienprasit Chaiyapatranun, president of the Thai Hotels Association (THA), said the association has identified four key issues, along with recommendations and solutions, to support tourism recovery:

1. Rebuild confidence and safety for tourists – Establish a press centre to publicise arrests and policies targeting online scams, tourist fraud, and crimes affecting visitors, with regular briefings twice a month.

2. Invite senior Chinese leaders to Thailand – Events such as Thai-Chinese relations forums and the Thailand-China Expo aim to restore confidence among Chinese travellers. “Chinese tourists remain concerned about safety. Although the last three months of the high season already attract Chinese visitors, particularly in early October during the National Day holiday, if the government can fully restore confidence starting in October, it will generate momentum through November and December, helping overall foreign tourist numbers approach target levels,” he said.

3. Resolve border issues – Prolonged tensions could disrupt Thailand-Cambodia land-based tourism routes. The association called for the repeal of martial law, as travel insurance policies do not cover areas under such restrictions. It also urged border openings to facilitate cross-border travel, and requested soft loans and tax relief for hotels in affected provinces.

4. Plan domestic tourism incentives during the low season – Starting 1 May 2026, clear measures are needed to prevent significant declines in total tourism revenue. The association recommends early government budget allocations to support the “We Travel Together” programme, with the state covering 40-50% of expenses and utilising widely adopted apps such as Paotang and Thung Ngern.