Thailand’s cabinet has approved a five-point Thailand tourism stimulus to spur domestic travel and lift fourth-quarter growth, targeting a 0.04% boost to GDP while forgoing an estimated 5 billion baht in tax revenue.
Finance permanent secretary Lavaron Sangsnit said on 21 October the package is intended to accelerate spending ahead of the high season and sustain economic momentum into 2026.
The measures were endorsed at a meeting chaired by Prime Minister and Interior Minister Anutin Charnvirakul.
Under the personal income tax measure, individuals can claim up to 20,000 baht in deductions for eligible domestic travel expenses—covering accommodation and restaurant services—incurred between 29 October and 15 December 2025.
The first 10,000 baht can be supported by paper or e-tax invoices; the second 10,000 baht requires e-tax invoices.
Trips to secondary provinces qualify for a 1.5-times deduction, while travel to major destinations is deductible at face value. Officials expect about 140,000 claimants, generating roughly 2.8 billion baht in spending. The scheme can be used alongside the government’s Let’s Go Halves Plus co-payment programme.
For businesses, registered companies and partnerships can deduct costs for seminars and training held in Thailand during the same window (29 October–15 December 2025).
Qualifying expenses include venue hire, accommodation, transport and tour services when paid to VAT-registered providers with full e-tax invoices; transport may be paid to non-VAT operators with e-receipts.
To encourage dispersal to less-visited areas, events in secondary cities are deductible at twice the actual cost, while those in major destinations can be deducted at 1.5 times.
Authorities anticipate around 1,500 firms will participate, with combined spending of about 315 million baht. These corporate tax deductions form a central plank of the Thailand tourism stimulus and its variants such as “domestic travel tax deduction Thailand” are expected to trend as businesses plan events.
Government agencies, state enterprises and local administrations are instructed to disburse at least 60% of their fiscal-2026 training and seminar budgets from October 2025 to 31 January 2026, prioritising secondary tourism provinces.
Historically, only 10%–20% of such budgets are spent in the first quarter.
The acceleration aims to channel public-sector demand to local hotels, meeting venues and service providers during the year-end period, supporting occupancy and cash flow.
To catalyse investment in hospitality, hotels operated by companies or partnerships will receive tax incentives for renovation. From 29 October 2025 to 31 March 2026, firms may deduct double the cost of eligible improvements, extensions or upgrades to hotel-related assets—excluding routine repairs.
The standard depreciation is allowed first, with an additional deduction amortised evenly over 20 accounting periods. The incentive covers permanent buildings and fixed furnishings used in hotel operations, aligning with industry needs for upgrades ahead of the high season.
Searches for “hotel renovation tax incentives Thailand” and “Thailand hotel upgrade deduction” are likely to rise as operators assess project pipelines.
The cabinet approved a one-year extension of the reduced excise tax on entertainment venues—including nightclubs, discotheques, pubs, bars and cocktail lounges (category 17.01)—keeping the rate at 5% rather than 10% from 1 January to 31 December 2026.
The Excise Department, working with the Department of Provincial Administration, will continue registering entertainment businesses to broaden the tax base.
The move is intended to support nightlife and leisure businesses that contribute to local tourism ecosystems, particularly in urban hubs and resort towns.
Lavaron said local tourism remains a key macroeconomic lever, accounting for about 24% of private consumption and 14% of GDP. Without intervention, officials warn domestic tourism could contract by 2.7% in 2025, after an 8.4% expansion in 2024.
The Fiscal Policy Office estimates the five measures together would add around 0.04% to GDP in 2025, with further momentum expected to carry into early 2026 via accelerated public spending and hotel investment.
The package mixes domestic travel tax deductions, targeted corporate incentives, front-loaded public budgets, hotel renovation tax breaks and a lower entertainment excise tax.
Policymakers argue the monetary size is modest but the measures are structured to strengthen sentiment during the festive period, draw travellers to secondary destinations and keep cash circulating across tourism supply chains.
For travellers and businesses planning end-of-year trips, events or upgrades, the Thailand tourism stimulus provides a defined timetable, clear eligibility rules and varied routes to lower costs while supporting the broader recovery.
“Hotel industry set for tax relief in Thailand tourism stimulus” was originally created and published by Hotel Management Network, a GlobalData owned brand.
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