HBI Staff | Hyderabad 
In a bid to bolster its pandemic-hit tourism sector, the Thailand Cabinet has announced an extension of the waiver on operating fees for hoteliers for an additional two years. The exemption, which covers an annual fee of THB 40 per hotel room, will be effective from July 2024 to June 2026. Deputy spokesman Karom Phonphonklang disclosed during a news conference that this extension will incur a cost of THB 54 million in foregone revenue for the government.
The decision aims to alleviate financial burdens on hotel operators who continue to struggle amidst the ongoing impacts of the Covid-19 pandemic. This support comes as Thailand’s economy lags behind its regional counterparts, grappling with high household debt, borrowing costs, and subdued export performance.
Tourism remains a crucial pillar of Thailand’s economic recovery strategy, with the government targeting a 3 per cent GDP growth in 2024, following a modest 1.9 per cent expansion in 2023. The sector has shown signs of recovery, evidenced by a 36 per cent year-on-year increase in foreign tourist arrivals, totaling 16.84 million visitors from the beginning of 2024 until June 23, 2024. These tourists contributed THB 795 billion to the economy, according to data from the tourism ministry, with China emerging as the largest source market with 3.31 million arrivals during the period.
Looking ahead, the government aims to attract 36.7 million foreign visitors in 2024, aiming to rebound close to pre-pandemic levels seen in 2019, when nearly 40 million tourists visited Thailand.
In addition to supporting the tourism sector, the government has also approved subsidies for rice farmers as part of broader efforts to stimulate economic activity and support rural communities.
This dual strategy of fee waivers for hotels and subsidies for farmers underscores Thailand’s commitment to fostering economic recovery and growth amidst ongoing challenges.
