Tuesday, July 23, 2024

Thailand Approves Tax Incentives to Stimulate Domestic Tourism

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Thailand has approved tax incentives to boost local tourism, offering deductions on domestic travel expenses, aiming to revive the sector hit by the pandemic.

Thailand’s Tourism Boost Strategy

Thailand has given the green light to tax incentives aimed at invigorating domestic tourism. These measures are part of a broader strategy to rejuvenate the sector, which has been severely impacted by the global pandemic.

Incentives for Domestic Tourists

The approved incentives include tax deductions for domestic tourists. This move is expected to encourage local travel, thereby providing a much-needed boost to the tourism industry. Despite the challenges, Thailand remains committed to reviving its tourism sector and retaining its position as a global tourist hotspot.

Thailand’s tourism sector, a significant contributor to the country’s GDP, has been severely impacted by the COVID-19 pandemic. In response, the Thai government has approved a range of tax incentives aimed at stimulating domestic tourism.

The new measures include a deduction of up to 3,000 baht ($97) for domestic tourism expenditures per person. This applies to accommodation, food and beverage, and other tourism-related expenses. Additionally, businesses offering tourism services will receive a corporate income tax reduction from 30% to 15% for income derived from these services.

These incentives are part of a broader strategy to revive the tourism industry, which accounted for around 18% of Thailand’s GDP in 2019, according to the World Bank. The government hopes that by encouraging local travel, they can mitigate some of the economic damages caused by the pandemic.

While these measures are a positive step, challenges remain. The ongoing health crisis necessitates strict safety protocols, which may limit the full potential of these incentives. Nevertheless, the government remains optimistic that these measures will provide much-needed relief to the struggling tourism sector.

Source : Thailand Approves Tax Incentives to Stimulate Domestic Tourism