On October 21, 2025, the Presidents Office for Thailand, along with Prime Minister Anutin Charnvirakul, decreased the four sets of policies to target Thailand's domestic travels impact on the economy, with a focus on the booming holiday season. The domestic policies being targeted show a focus on the revitalization of policies that remained dormant through the pandemic. The focus on domestic policies being revitalized through focus on stimulation of domestic travels shows the importance of the tourism industry.
Though the planned policies are likely to positively impact Thailand's economy to 5 billion baht in revenue, it does expect to slightly improve spending the government does expect to slightly improve spending to help the economy. The government expects the spending replacement to improve the economy. Hence, proving the policies greatest aim as stimulation of consumer behavior.
Lavaron Sangsnit, Permanent Secretary for Finance, outlined the rationale behind the package, emphasizing that while the direct financial scale is not large, the stimulus measures will help create a positive atmosphere and encourage spending ahead of the busy holiday season. The government aims to target both domestic travelers and companies, ensuring that these measures reach a wide range of sectors within the tourism industry.
The package includes tax deductions, incentives for corporate seminars, and new funding rules to stimulate spending, as well as a focus on driving visitors to secondary tourist destinations. This is expected to help reduce overcrowding in major tourist areas while spreading the benefits of tourism more evenly across the country.
One of the most significant measures is the introduction of a personal income tax deduction for individuals who travel within Thailand. Travelers can claim up to 20,000 baht in tax deductions for travel expenses, with 10,000 baht applicable for both paper and e-tax invoices, and the remaining 10,000 baht requiring only e-tax invoices. To encourage more visits to regional areas, the government will offer a 1.5-times deduction for trips to secondary cities.
This incentive will run from October 29 to December 15, 2025, and can be combined with the government's existing "Let's Go Halves Plus" co-payment program. This dual approach is designed to make travel more affordable and accessible, encouraging local tourists to explore beyond the usual hotspots.
Another significant part of the package targets companies and organizations. Registered businesses will be eligible for corporate tax deductions of double the actual expenses incurred for hosting seminars, training sessions, or corporate events within Thailand. The deductions cover costs like accommodation, transport, and tour services, with additional incentives for events held in secondary tourism provinces, where expenses can be deducted 1.5 times.
This measure is designed to stimulate corporate travel and foster business-related tourism. By encouraging companies to host events in less-visited regions, the government aims to distribute tourism benefits more evenly across the country.
In an effort to encourage government agencies and state enterprises to use their budget for domestic tourism-related activities, at least 60% of their 2026 fiscal year's training and seminar funds must be spent between October 2025 and January 2026. The policy prioritizes secondary tourism provinces, ensuring that these areas receive a significant boost from government-related events. The accelerated disbursement is expected to help fill local hotels, restaurants, and transport services, driving economic activity in regions that typically see less tourism.
To support the hospitality sector, the Cabinet introduced tax incentives for hotel renovations and upgrades. Hotels can now deduct double the actual cost of improvements, extensions, or upgrades to hotel assets, excluding regular repairs. This incentive is intended to help hotels modernize their facilities, improve their competitiveness, and enhance the overall tourist experience.
This initiative will run from October 29, 2025, to March 31, 2026, and includes tax deductions for depreciation and amortization over 20 years. This long-term support is expected to encourage investment in Thailand's hospitality infrastructure, making the country an even more attractive destination for tourists.
The government is also extending the excise tax reduction for entertainment and leisure businesses, including nightclubs, pubs, bars, and other venues within the entertainment sector. The excise tax, which was reduced from 10% to 5% in 2025, will now remain at 5% through 2026. This tax reduction is aimed at helping nightlife and leisure venues recover from the effects of the pandemic and attract more domestic tourists during the high season.
The Excise Department will continue registering entertainment businesses to ensure that the tax reduction reaches a wider array of establishments, further stimulating the economy and contributing to a vibrant tourism industry.
The measures are designed to benefit both the tourism sector and local communities, with a strong emphasis on promoting travel to secondary and lesser-known destinations. This approach not only aims to ease the pressure on Thailand's most popular tourist spots but also helps spread the benefits of tourism more evenly across the country.
By incentivizing both individual and corporate travel, the government is seeking to boost domestic spending during the critical year-end period. The added benefits to local businesses, especially those in secondary tourist areas, are expected to be significant, as more travelers head off the beaten path to explore new destinations.
Moreover, the government's focus on encouraging investments in hotel renovations and supporting the entertainment sector highlights its broader commitment to making Thailand a more attractive and competitive destination for both domestic and international visitors.
The stimulus plan Thailand has approved for tourism sector is quite strategic considering the present-day economy. Although the impact on GDP is unlikely to be significant, the government expects to carry on post-celebration economic activity after the December holiday season. By cultivating spending and stimulating inter-district travel, the Government is expecting economic recovery and growth in the tourism sector, and overall economy, to be sustained. Seeing the season peak is around the corner, Thailand's additional focus on setting positive inter-district travel and tourism expectations is apparent.