Launched during the Prayut Chan-o-cha administration, Khon La Khrueng sought to provide financial relief and lift consumer spending power dented by the pandemic, reports the Bangkok Post.
The scheme subsidised 50% of the cost of food, beverages and general goods for participants, with a daily subsidy limit of B150 per person.
Meanwhile, Tiew Thai Khon La Khrueng subsidises up to 50% of accommodation costs, capped at B3,000 per night for up to five nights.
After checking in, participants receive an e-coupon worth up to 500 baht per day, which can be used as a discount at participating tourism businesses such as restaurants, spas and car rental.
Kamol Meechaipattanakit, a member of the southern subcommittee of the Restaurant and Goods Product Association, said lower agricultural product prices in the South have weakened locals’ purchasing power.
The tourism sector on islands such as Samui and Koh Pha-ngan in Surat Thani reported travellers are spending less, he said.
The industry is also coping with high raw material costs and energy prices, yet it cannot raise food prices due to weak consumer spending power, said Mr Kamol, who owns four restaurants in Surat Thani.
“The restaurant business in the area faces a tougher time now than during the pandemic,” he said.
Mr Kamol said he anticipates eateries in Surat Thani will record a sales decline of more than 20% year-on-year for the low season of 2025.
Pisut Suttijindawong, vice-president of the Phuket-Andaman Restaurant Club and owner of two restaurants in Phuket, said there are fewer Thai travellers because of the stagnant economy and security concerns following the discovery of explosive devices in the area.
Moreover, Chinese visitors, which used to fill the gap during the low season, are vanishing, he said.
While the government’s domestic travel scheme aims to motivate Thais to make trips, Mr Pisut said he is concerned travellers may end up enjoying food and activities at their accommodations instead of supporting local restaurants and shops. This could mean restaurant operators see little benefit from the stimulus.
He said he wants the Khon La Khrueng co-payment scheme to be reintroduced because it could stimulate businesses, including restaurants at the village level, unlike the current scheme.
Khon La Khrueng can increase sales for small food vendors, mom-and-pop shops and local fresh markets, said Mr Pisut.
Mr Kamol said restaurant operators face challenges securing loans, primarily because their revenue tends to fluctuate over time.
He urged authorities to create regulations that better align with the industry’s rhythms, enabling operators to access funding more easily.