Thailand’s Ministry of Tourism and Sports is gearing up to launch a significant new stimulus package designed to invigorate the local tourism sector. This ambitious plan includes a substantial increase in the domestic travel subsidy, now set at a generous 50%, and a bold move to tighten regulations governing online travel agents (OTAs).
The Ministry, under the leadership of Minister Sorawong Thienthong, is determined to retain more of the economic benefits of tourism within Thailand. The new stimulus package, currently in development by the Tourism Authority of Thailand (TAT), will focus on increasing the economic impact of tourism by 5-10% compared to earlier programs. These programs have already proven successful, generating an economic boost of approximately 58.6 billion THB (1.7 billion USD).
The centerpiece of this initiative is a revised co-payment scheme that aims to incentivize domestic travel by providing significant subsidies to Thai residents. This new scheme is planned to be implemented during the low season, typically from May to October, with a potential for an earlier launch, perhaps even at the beginning of 2025, based on private sector feedback.
However, the most notable aspect of the new stimulus package is its focus on regulating foreign online travel agents. The Ministry is deeply concerned that these platforms, often not registered in Thailand, have been siphoning significant revenue from local businesses. The proposed regulations aim to level the playing field by requiring OTAs to register within the country, ensuring a fairer distribution of tourism income.
Concerns have been raised about the previous stimulus program, which designated foreign OTAs as official platforms. Many of these platforms, due to their lack of local registration, were perceived to be engaged in unfair competition with Thai businesses. These companies, often based overseas, extract hefty commissions, typically between 25-30%, from Thai hotels, draining revenue from the local economy. The new plan aims to address this issue by promoting a more balanced approach that prioritizes the growth of local businesses and ensures that a greater share of tourism-related income stays within Thailand.
The Ministry is slated to review the TAT’s proposed plan next month, with the goal of submitting it to the cabinet for approval by January 2025. The TAT has also been tasked with exploring additional measures to further reduce the reliance on foreign OTAs, allowing Thai tourism businesses to flourish without the dominance of international platforms.
