As Thailand seeks to rejuvenate its tourism industry, the government is aiming to increase its domestic tourism subsidy to 50%, a major leap from the previous scheme. This initiative is expected to fuel more travel within the country and strengthen the local economy. With the support of international soft power and local cultural events, such as the anticipated Amazing Thailand Countdown 2025 featuring Lalisa “Lisa” Manoban, Thailand is set to make waves on the global stage while supporting local businesses.

The Proposal to Hike the Tourism Subsidy

Thailand’s Tourism and Sports Minister, Sorawong Thienthong, is pushing for a significant increase in tourism subsidies to locals under a new co-payment scheme. The aim is to raise the government’s contribution from 40% to 50%, creating a greater economic impact compared to earlier phases. The previous government’s subsidy program, implemented over five phases, generated an economic impact of 58.6 billion baht. The new initiative is expected to increase this by 5-10%, and the ministry is considering launching it as early as the low season in 2025.

By enhancing the subsidy, the government hopes to motivate more Thai citizens to explore their own country, thereby stimulating tourism-related spending. Minister Sorawong stressed the urgency of implementing the program to revitalize the economy and noted that final decisions will depend on budget approval from the Finance Ministry.

Reducing Dependence on Foreign Online Travel Agents

In addition to increasing the domestic tourism subsidy, the government is also taking steps to reduce Thailand’s reliance on foreign online travel agents (OTAs). In discussions with local hotel operators, it became clear that foreign OTAs, which charge commission fees as high as 25-30%, have led to an outflow of revenue from the country. These fees have placed a burden on local businesses, many of which are not equipped to compete with international platforms that are not registered in Thailand.

To address this issue, the Tourism Authority of Thailand (TAT) has been tasked with developing mechanisms that promote local OTAs and reduce dependence on foreign platforms. By ensuring that local companies have a fair opportunity to participate, the government hopes to keep more tourism revenue within the country, benefiting local communities and businesses.

Soft Power and Tourism: The Role of Cultural Events

In addition to financial measures, Thailand is leveraging its soft power to promote tourism. The upcoming Amazing Thailand Countdown 2025, featuring a performance by internationally renowned pop star Lalisa “Lisa” Manoban, is one such example. High-profile events like these draw attention to Thailand’s rich cultural heritage and vibrant entertainment scene, attracting both domestic and international visitors.

TAT Governor Thapanee Kiatphaibool emphasized the importance of soft power in helping local communities benefit from tourism. Initiatives like the “One Family One Soft Power” project are designed to increase the skills of local workers and spread the benefits of tourism more evenly across Thailand. The long-term goal is for the tourism industry to account for 30% of Thailand’s GDP by 2030, with a particular focus on supporting 7,000 local communities.

Conclusion: A Bright Future for Thai Tourism

With the government’s plans to increase domestic tourism subsidies, reduce dependence on foreign OTAs, and boost tourism through cultural events, Thailand is setting the stage for a major tourism revival. These measures are expected to have a lasting positive impact on local businesses and communities, while drawing in both domestic and international travelers. As Thailand moves towards its goal of making tourism a key economic driver by 2030, these initiatives offer a promising path forward.