Thailand to launch four domestic tourism stimulus measures to boost Q4 travel
The Ministry of Finance will propose four measures to Cabinet on October 21 to stimulate domestic tourism, supporting secondary provinces and SMEs while targeting an economic growth boost of up to 0.06% in Q4 2025.
Government sources have revealed that on October 21, the Ministry of Finance will submit four domestic tourism stimulus measures for Cabinet approval. This comes after the first eight months of 2025 saw Thai tourist numbers rise by only 2.7% year-on-year, a sharp slowdown compared with 8.4% growth in 2024.
According to the Office of Small and Medium Enterprises Promotion, there are 42,227 accommodation providers nationwide, with 45% located in secondary tourist provinces across 55 provinces. More than 80% of these operators are small businesses, playing a key role in supporting the local economy and employment.
The four proposed measures aim to encourage travel to secondary tourist provinces, with projected economic benefits estimated to increase GDP by 0.05-0.06% in 2025 compared with a scenario without these measures, and by 0.03-0.04% in 2026.
The first measure involves tax incentives for tourism. From October 29 to December 15, 2025, individuals can claim deductions of up to 20,000 baht on hotel, homestay, and registered restaurant expenses. The first 10,000 baht can be claimed with a standard or electronic tax invoice, and the remaining 10,000 baht requires an electronic tax invoice. In secondary tourist provinces and selected districts in 15 provinces, the deduction is multiplied by 1.5 times; in other areas, it is standard. The government expects around 140,000 users, with a projected revenue loss of 420 million baht in personal income tax.
The second measure accelerates government, state enterprise, and local administrative body spending on training, seminars, and workshops from October 2025 to January 2026. At least 60% of the allocated budget is to be spent, prioritising secondary tourist provinces.
The third measure extends reduced excise tax rates on entertainment venues. From January 1 to December 31, 2026, excise on nightclubs, discotheques, pubs, cocktail lounges, and venues offering music or other entertainment after midnight will drop from 10% to 5%, reducing expected revenue by 219.55 million baht annually.
The fourth measure provides tax incentives for hotel renovations. Between October 29, 2025 and March 31, 2026, corporate hotel operators can claim double the expenses for expansions or upgrades (excluding repairs to original condition). Corporate income tax can be exempted for 100% of these expenses over 20 consecutive accounting periods. Around 1,200 hotels are expected to invest an estimated 24 billion baht, with government tax revenue foregone projected at 240 million baht per year, totalling 4.8 billion baht over 20 years.
Furthermore, specialised financial institutions will provide loan guarantees for hotels and tourism-related businesses, while the Government Savings Bank is considering a low-interest credit scheme worth 100 billion baht, with 10 billion baht allocated to revitalise and upgrade the tourism sector and related industries.
