Thailand’s Cabinet Approves Tax Relief and Stimulus to Revive Tourism Sector
Five-point tourism package offers individual and corporate tax deductions and hotel renovation incentives to boost Q4 growth
Thailand’s Cabinet, led by Prime Minister and Interior Minister Anutin Charnvirakul, approved a five-point tourism stimulus package on October 21 2025, aimed at revitalising the hospitality sector and accelerating domestic travel ahead of the high season.
The measures are projected to boost GDP by around 0.04 per cent while forgoing an estimated 5 billion baht in tax revenue.
Under the personal income tax relief component, individuals can claim deductions of up to 20,000 baht for eligible domestic travel expenses incurred between October 29 and December 15 2025. The deduction is structured such that the first 10,000 baht can be supported by paper or electronic tax invoices, while the remaining 10,000 baht require electronic tax invoices only.
Trips to secondary provinces qualify for a 1.5-times deduction, while major tourist destinations receive a standard one-time deduction.
Officials estimate about 140,000 claimants, generating roughly 2.8 billion baht in spending.
For businesses, the stimulus allows registered companies and partnerships to deduct costs for seminars and training held in Thailand during the same period.
Eligible expenses include venue hire, accommodation, transport and tour services when paid to value-added tax (VAT)-registered providers with full electronic tax invoices; transport may be paid to non-VAT operators with valid receipts.
Events in secondary cities are deductible at double actual cost, while those in major destinations can deduct at 1.5 times.
It is expected around 1,500 firms will participate, with combined spending of approximately 315 million baht.
To support hospitality investment, the package grants hotel operators a double deduction for renovation costs of permanent buildings and fixed furnishings used in hotel operations (excluding routine repairs).
The eligible period spans October 29 2025 to March 31 2026. Also included is the extension of an excise-tax reduction for entertainment venues (nightclubs, pubs, bars, lounges) from 10 per cent to 5 per cent for the 2026 calendar year.
State agencies, state enterprises and local administrations are instructed to disburse at least 60 per cent of their fiscal-2026 training and seminar budgets from October 2025 to January 31 2026, with priority given to secondary tourism provinces to channel demand to local hotels and service providers.
The finance ministry emphasises that although the fiscal scale of the stimuli is moderate, the measures are aimed at supporting occupancy, domestic travel and the hotel business at a critical time, thus bolstering Thailand’s tourism industry as a core pillar of growth heading into 2026.
The measures are projected to boost GDP by around 0.04 per cent while forgoing an estimated 5 billion baht in tax revenue.
Under the personal income tax relief component, individuals can claim deductions of up to 20,000 baht for eligible domestic travel expenses incurred between October 29 and December 15 2025. The deduction is structured such that the first 10,000 baht can be supported by paper or electronic tax invoices, while the remaining 10,000 baht require electronic tax invoices only.
Trips to secondary provinces qualify for a 1.5-times deduction, while major tourist destinations receive a standard one-time deduction.
Officials estimate about 140,000 claimants, generating roughly 2.8 billion baht in spending.
For businesses, the stimulus allows registered companies and partnerships to deduct costs for seminars and training held in Thailand during the same period.
Eligible expenses include venue hire, accommodation, transport and tour services when paid to value-added tax (VAT)-registered providers with full electronic tax invoices; transport may be paid to non-VAT operators with valid receipts.
Events in secondary cities are deductible at double actual cost, while those in major destinations can deduct at 1.5 times.
It is expected around 1,500 firms will participate, with combined spending of approximately 315 million baht.
To support hospitality investment, the package grants hotel operators a double deduction for renovation costs of permanent buildings and fixed furnishings used in hotel operations (excluding routine repairs).
The eligible period spans October 29 2025 to March 31 2026. Also included is the extension of an excise-tax reduction for entertainment venues (nightclubs, pubs, bars, lounges) from 10 per cent to 5 per cent for the 2026 calendar year.
State agencies, state enterprises and local administrations are instructed to disburse at least 60 per cent of their fiscal-2026 training and seminar budgets from October 2025 to January 31 2026, with priority given to secondary tourism provinces to channel demand to local hotels and service providers.
The finance ministry emphasises that although the fiscal scale of the stimuli is moderate, the measures are aimed at supporting occupancy, domestic travel and the hotel business at a critical time, thus bolstering Thailand’s tourism industry as a core pillar of growth heading into 2026.
