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Travel subsidy fails to attract Thais

BANGKOK: The tourism and sports minister says the number of local tourists using co-payment privileges in the ‘Tiew Thai Khon La Khrueng’ domestic tourism campaign was lower than expected for the first 10 days of the scheme despite 1.58 million registrants, as travel sentiment may be unfavourable due to “economic conditions”.

tourismeconomics
By Bangkok Post

Monday 14 July 2025 12:31 PM


Tourists relax on Thong Lang Beach in Chon Buri. The number of local tourists booking via the co-payment scheme this month remains lower than expected. Photo: Bangkok Post

Tourists relax on Thong Lang Beach in Chon Buri. The number of local tourists booking via the co-payment scheme this month remains lower than expected. Photo: Bangkok Post

As of July 11, the number of successful registrants totalled 1.58mn, but the number of redemptions tallied 91,008, leaving 408,992 privileges unused, reports the Bangkok Post.

Tourism and Sports Minister Sorawong Thienthong said the ministry predicted the 500,000 privileges would be used up rapidly, but registrants appear hesitant to book.

Despite a discount of up to 50%, many Thai travellers who registered for the B1.75 billion scheme that launched on July 1 have not booked rooms, largely attributed to the sluggish local economy hampering travel sentiment, he said.

Mr Sorawong said the slow bookings could also be the result of limited accommodation choices as the number of approved hotels, restaurants, attractions, and other tourism services totalled only 5,254, while the number of applicants tallied more than 40,000.

He said the Tourism Authority of Thailand (TAT) should have opened the system for operators to register well before the scheme was approved by the cabinet last month.

Operators were allowed to enrol in this scheme starting on June 25, while the verification process is lengthy, which the ministry says is needed to ensure transparency.

Registration of new participants was closed to fix system glitches from July 4-9, but Mr Sorawong said it is not necessary to extend the scheme from the October deadline.

“The scheme was already extended once from September. The current time frame gives tourists plenty of time to book their trips,” he said.

“Previously we didn’t expect to expand the scheme to October, as this is considered the start of the high season. Despite this extension, bookings were still slower than we anticipated.”

Mr Sorawong said the ministry does not oppose increasing the number of privileges from 500,000, but the TAT will have to monitor booking trends this month in more detail.

If the budget remains after all privileges in the first phase are fully redeemed, he said it is possible the TAT could increase the number of privileges without asking for more stimulus funds from the government, which is focused on mitigating the impact of new US tariff rates.