by Lacey Pfalz
Last updated: 9:00 AM ET, Tue June 4, 2024
Thailand’s government on June 4 approved a new tax break for companies organizing local conventions and seminars to boost domestic tourism during the country’s low tourism season.
According to Reuters, the tax deductions will cost the government 1.5 billion baht in tax revenue, which is equivalent to $41 million U.S. dollars, but the positive impact on the tourism economy would be greater.
The tax deductions are also available for those booking homestay and non-hotel accommodations.
According to Deputy Finance Minister Paopoom Rojanasakul, the new domestic travel incentives for businesses will extend from May through November.
The World Travel & Tourism Council’s economic data on the tourism industry in Thailand reports that the industry comprises 13 percent of the country’s total Gross Domestic Product and employs nearly 8 million Thai people across the country this year.
While international visitor spending is expected to continue being around 13 percent lower than Thailand’s 2019 average, domestic visitor spending is expected to grow 10.7 percent year over year, over 11.5 percent over its pre-pandemic level. In fact, domestic spending now comprises just under 50 percent of all travel and tourism in Thailand.
That doesn’t mean Thailand isn’t trying to boost its international numbers, though. At the end of May, the country announced an extension of the visa-free travel period from 30 to 60 days, along with an increase in the number of countries eligible to visit visa-free, among other new incentives.
Digital nomads, remote workers, and freelancers can also stay in Thailand even longer, extended to 180 days.
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