Tourism groups seek Bt14bn relief as oil crisis dents travel confidence

The Federation of Thai Tourism Associations (FETTA) has held talks with the Tourism Authority of Thailand (TAT) on policy proposals aimed at stabilising Thailand’s tourism and service industries in 2026 amid the oil crisis, with the agency set to forward the recommendations to the government.

FETTA comprises several tourism-related organisations, including the Association of Thai Travel Agents, the Thai Hotels Association, the Thai Travel Agents Association, the Thai Transportation Operators Association, the Association of Chonburi Tourism Federation, the Thai Tourism Promotion Association, and the Association of Domestic Travel.

According to a report from FETTA, tourism and service sector associations have held discussions with private-sector operators as well as tourism and economic academics to assess the current situation and its impact. 

They found that Thailand’s tourism industry is facing major challenges from energy constraints, rising travel costs and fragile tourist confidence. These factors are beginning to affect travel decisions by both domestic and international tourists. 

Some overseas markets, such as Malaysia, have already seen warnings advising travellers to postpone trips, as widely reported, and similar developments could emerge in other markets unless urgent remedial measures are introduced.

The impact is being felt not only by operators but also by the wider economy. Thailand’s tourism industry is worth 2.7 trillion baht, accounting for about 13% of national GDP and supporting around 4 million jobs, making it one of the country’s key economic engines.

FETTA said the oil shortage is not merely an energy issue, but a “crisis of confidence”, particularly during Songkran, when Thai people mainly travel by car. If travellers are uncertain whether fuel will be available, they are likely to cancel their journeys immediately, affecting the tourism system as a whole.

If such reports spread internationally, foreign tourists may also hesitate to visit Thailand. In this situation, “having no fuel to refill” is more critical than “price controls”, because nothing is worse than a fully loaded passenger vehicle being unable to refuel en route and continue its journey.

FETTA therefore called on the government to resolve fuel shortages at petrol stations as urgently as possible in order to restore confidence among the public and tourists before the impact spreads more widely.

Following the discussions, an integrated policy response was proposed, focusing on systemic solutions covering supply, costs and demand, while also rebuilding confidence in the short term and strengthening sustainability over the longer term.

The key measures proposed are as follows:

First, on energy management, FETTA called for dedicated oil quotas for the tourism sector, the establishment of special refuelling channels, and controls on refining costs during the crisis.

Second, to lower air travel costs, it proposed support for charter flights and a reduction in airport fees, with a budget of 1 billion baht over three quarters. The scheme would cover 1,000 flights per quarter, with support of 350,000 baht per flight.

Third, to stimulate the domestic market, FETTA proposed co-payment measures and travel incentives.

Under one proposal, the government would promote interprovincial travel through 1 million entitlements with a budget of 3 billion baht, under conditions designed to encourage tourist dispersal:

• For 2 days and 1 night in 1 province, travellers would receive 1,000 baht.
• For 3 days and 2 nights across 2 provinces, travellers would receive 2,000 baht.
• For 4 days and 3 nights across 3 provinces, travellers would receive 3,000 baht.

Another proposal would promote group tourism in both the domestic and inbound markets in order to save energy, stimulate the economy and support public transport operators. 

Under the “One Million Bus Trips Across Thailand” campaign, cross-regional itineraries would be designed with visits to local communities. Groups of 20 people or more travelling for 3 days and 2 nights would receive support of 10,000 baht per bus. The target is 1 million participants, with a total budget of 10 billion baht.

FETTA also referred to the Cabinet resolution of March 10, 2026, under which government agencies and state enterprises were instructed to hold meetings, seminars and study visits within the country. It urged them to use tour companies and bus services through relevant associations.

Fourth, FETTA proposed establishing a monitoring and surveillance system, along with overseas market promotion through a two-way marketing strategy and roadshows in key markets.

Fifth, it called for stronger confidence-building measures on safety, including the management of overstay cases and stricter tourist screening systems to monitor undesirable individuals.

Sixth, it proposed developing tourism-sector personnel by upgrading language and digital skills.

Seventh, it urged the government to introduce measures to control the prices of essential consumer goods, as these directly affect the cost base of tourism businesses and everyday living expenses.

To ensure effective implementation, FETTA also proposed setting up a joint operations centre involving the government, private sector and academics to integrate data and monitor the situation in real time.