Thailand Rolls Out Domestic Travel Tax Breaks as Tourist Arrivals Wobble
Government targets residents’ trips and business events to offset decline in inbound tourism and support local hospitality industry
Thailand is deploying new tax-incentives to shore up its tourism sector as international visitor numbers face the prospect of an annual decline, partly driven by a sharp drop in arrivals from China.
The measures were approved by the Cabinet on 21 October 2025 and form part of the “Tiew Dee Mee Khuen” (Good Trip, Good Return) stimulus package.
Under the scheme, Thai resident individuals travelling domestically between 29 October and 15 December 2025 may deduct up to 20,000 baht of travel expenses from personal income tax.
The first 10,000 baht requires either paper or e-tax invoices, with the next 10,000 baht requiring e-tax-invoices only.
Travellers to 55 designated secondary-tourism provinces may claim a deduction multiplier of 1.5×.
At the same time, companies and partnerships hosting domestic seminars or events in the same timeframe may claim enhanced deductions: 2× for venues in secondary destinations and 1.5× elsewhere.
The initiative comes amid signs that Thailand’s full-year international visitor count will fall below expectations of 40 million arrivals—a target set a year ago—and may even mark the first annual drop since the pandemic.
A major factor cited is the sustained weakness in arrivals from China, traditionally the country’s largest source market.
Malaysia is currently the top inbound market, followed by China, India, Russia and South Korea.
In addition to deductions, hotels and accommodation businesses investing in renovation between 29 October 2025 and 31 March 2026 may claim double the cost as tax-deductible expenditure, with the extra deduction amortised over 20 accounting periods.
The government estimates the combined impact of the measures will add around 0.04-0.05 per cent to GDP in 2025, while also encouraging travel to secondary cities and distributing tourism benefits more broadly.
Tourism accounts for approximately 24 per cent of private consumption and 14 per cent of GDP in Thailand.
Officials argue that while the stimulus cost is modest in fiscal terms, the timing ahead of the peak-season matters.
With outbound resident travel and international arrivals both facing headwinds, the emphasis on domestic demand and business-event travel reflects a strategic pivot in the tourism recovery plan.
The measures were approved by the Cabinet on 21 October 2025 and form part of the “Tiew Dee Mee Khuen” (Good Trip, Good Return) stimulus package.
Under the scheme, Thai resident individuals travelling domestically between 29 October and 15 December 2025 may deduct up to 20,000 baht of travel expenses from personal income tax.
The first 10,000 baht requires either paper or e-tax invoices, with the next 10,000 baht requiring e-tax-invoices only.
Travellers to 55 designated secondary-tourism provinces may claim a deduction multiplier of 1.5×.
At the same time, companies and partnerships hosting domestic seminars or events in the same timeframe may claim enhanced deductions: 2× for venues in secondary destinations and 1.5× elsewhere.
The initiative comes amid signs that Thailand’s full-year international visitor count will fall below expectations of 40 million arrivals—a target set a year ago—and may even mark the first annual drop since the pandemic.
A major factor cited is the sustained weakness in arrivals from China, traditionally the country’s largest source market.
Malaysia is currently the top inbound market, followed by China, India, Russia and South Korea.
In addition to deductions, hotels and accommodation businesses investing in renovation between 29 October 2025 and 31 March 2026 may claim double the cost as tax-deductible expenditure, with the extra deduction amortised over 20 accounting periods.
The government estimates the combined impact of the measures will add around 0.04-0.05 per cent to GDP in 2025, while also encouraging travel to secondary cities and distributing tourism benefits more broadly.
Tourism accounts for approximately 24 per cent of private consumption and 14 per cent of GDP in Thailand.
Officials argue that while the stimulus cost is modest in fiscal terms, the timing ahead of the peak-season matters.
With outbound resident travel and international arrivals both facing headwinds, the emphasis on domestic demand and business-event travel reflects a strategic pivot in the tourism recovery plan.
