Despite an ambitious co-financing program aimed at boosting domestic tourism, Thais are shunning bookings.
The Tourism Authority of Thailand launched the co-payment program on Tuesday, July 1, which offers up to 3,000 baht (79 euros) per room per night for accommodation.
The program, which will run from July to October 2025, allows Thais to pay only 50% of the cost of travel and hotels and aims to boost domestic tourism.
But since its launch, which began with a series of bugs that forced those responsible to change the application, it has not had the expected success.
See: Bug, chaos: Thailand's domestic tourism recovery program goes off the rails
The Ministry of Tourism cites an unfavorable economic situation, a limited choice of accommodation, and a delay in technical implementation.
A timid start despite 1.58 million registrations
The program, funded with 1.75 billion baht, aimed to offer discounts of up to 50%.
However, as of July 11, out of 1.58 million registered, only 91,008 had actually used the subsidy.
Result: 408,992 privileges remained unused.
Economic and logistical obstacles
Tourism and Sports Minister Sorawong Thienthong acknowledged that the program had not been as successful as expected.
Despite attractive discounts, the economic situation is hampering the desire to travel.
Another major obstacle: the lack of choice.
Barely 5,254 establishments – hotels, restaurants, attractions – have been validated, compared to more than 40,000 applications submitted.
A late registration schedule
The ministry blames the Tourism Authority of Thailand (TAT) for opening registration for operators too late, on June 25, while the program was launched a few days later.
The verification process, deemed necessary to ensure transparency, remains lengthy.
Additionally, registration of new participants was suspended from July 4 to 9 to resolve technical issues.
No extension planned beyond October
Despite the low demand, Mr. Sorawong does not plan to extend the duration of the program, which was already extended once from September to October.
"The current calendar gives tourists enough time to plan their trips," he said, while acknowledging that the results remain below expectations for a period considered the start of the high season.
A possible extension without a new budget
The ministry does not rule out increasing the number of subsidies if all 500,000 benefits are used.
However, this extension should be done without requesting additional funds from the government, which is currently focused on other economic priorities, notably US customs duties.
See: Arm wrestling with Washington: Thailand lowers its rights, but resists
See also:
Thailand: Tourism collapses as Chinese visitors drop
Tourism plummets, industry declines: Thailand's economy slows
Thailand is banking on Jurassic World: Renaissance to boost tourism
Tourism crisis worsens in Thailand: Middle East – Cambodia
Thailand's tourism plunge sends AoT shares plummeting
Source: Bangkok Post
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1 comment
I will never understand this government!!!
Instead of tackling the underlying problems that are undermining the country's tourism economy (development of tourist sites, cleanliness and maintenance of beaches, monitoring of reception infrastructure and the quality of hotels, professional qualifications of staff in tourist agencies, motorcycle rental agencies and land and sea excursion staff, security of group and passenger transport, fight against delinquency and crime in major tourist areas, etc.), they are still trying, as in the past, to attract potential domestic tourists with subsidy programs and financial incentives to fill hotels deserted by a Thai population who, apart from the high income brackets that reach or exceed 100,000 baht per month (around 2,600 euros), have other fish to fry than thinking about taking a vacation in a region of the country other than their own!
The main priorities of the majority of Thai workers whose income varies between 20,000 and 40,000 baht are essentially improving their daily well-being and keeping their home, purchasing food and clothing, repaying their loan for their house, car and/or motorcycle(s), their electricity, fuel and gas bills, etc.
When all this is paid for, there is not much left to think about vacations, especially since taking time off to go away for one or two weeks means 6 to 12 days without work and just as much less money at the end of the month, this loss of earnings being added to the bill for an intra-city air or road trip, hotel nights and all the expenses inherent in a successful vacation.
In conclusion, the launch of this new subsidy operation comes at a very bad time and the means used to achieve the desired goal (the revival of domestic tourism) do not match the ambitions...
Just like Thai household finances, state finances are not in the best shape and it is not very appropriate for the government to spend public treasury money on random operations to encourage spending, while 3/4 of Thais end the last week of each month with a few hundred baht in their pockets...
So this fiasco doesn't surprise me...
Yet more public money wasted, like the gigantic operation to distribute 10,000 baht to 50 million Thais, which also failed in all its splendor and served no purpose except to drain the state's finances!!!
It is quite significant in the sense that the country's political life seems to be operating in slow motion, without any major breakthrough, without any major innovation or positive initiative from one minister or another, and additional signs, with media coverage that borders on total disinterest in the country's political and economic situation...
Just a few articles in the Bangkok Post reporting a possible secret agreement between Thaksin and the Cambodian government (why am I not surprised!) and another on the art of forming alliances within a government!!!
The calm… before the storm?