Introduction to the New Subsidy Scheme
The Ministry of Tourism and Sports of Thailand, recognized as Southeast Asia’s second-largest economy, is preparing to implement a new subsidy program aimed at boosting domestic tourism. This initiative would potentially raise subsidies for locals by 50%, providing necessary financial support during the low season from May to October.
Revised Criteria for Online Travel Agents
In an effort to retain revenue within Thailand, the Ministry plans to revise the criteria for online travel agents (OTAs), requiring them to register in Thailand. This change is aimed at preventing significant income losses to foreign companies. Tourism and Sports Minister Sorawong Thienthong emphasized the need for mechanisms that reduce over-dependence on foreign platforms, which have previously created unfair practices for local businesses.
Economic Impacts of the Previous Programs
Past tourism subsidy initiatives have demonstrated significant economic impacts, generating approximately 58.6 billion baht (US$1.7 billion). The new subsidy scheme looks to amplify this economic footprint by an additional 5-10% compared to its predecessors. The Thailand Tourism Authority (TAT) is currently drafting the new co-payment scheme, which is designed to lower tourism costs for residents while fostering a supportive environment for local businesses.
As the ministry undertakes careful evaluations and consultations with stakeholders, it anticipates submitting the finalized project to the cabinet in January 2025. In light of private sector suggestions, an early implementation may also be considered. This comprehensive approach aims to ensure a sustainable future for Thailand’s domestic tourism industry, reinforcing the vital link between local travelers and the economy.
