Tax Break Unlikely to Benefit Thailand Domestic Tourism

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The latest tax incentive introduced in Thailand to boost domestic tourism in the last month of the year is not expected to yield much benefit due to its untimely and impractical implementation, Thai travel agents told TTG Asia.

The Thai cabinet last week approved a new tax incentive for individuals of up to 15,000 baht (US$421) on domestic tour packages and hotel accommodations enjoyed in December. This is on top of another 15,000 baht tax break on domestic travel spending applicable to the whole of 2016, allowing a combined deduction of up to 30,000 baht for the year-end period.

One industry source told TTG: ““More than half of hotels in (upcountry) provinces are illegal and most restaurants there cannot issue tax invoices legally. Therefore, benefits from this measure would mostly go to restaurants in shopping malls and big hotels, not directly to travel agents and SMEs in the tourism industry.”

“The government should create a long-term strategic plan for sustainable tourism,” said another.

Full story at TTG Asia.

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