Cabinet approves more measures to drive domestic tourism

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Photo courtesy of Anantara Rasananda Koh Phangan Villas

The Cabinet approved yesterday more stimulus measures to support domestic tourism to recover some of the losses from the absence of global travel after the coronavirus pandemic shut borders, a government official said.

The government will increase benefits contained in an earlier package including subsidies for hotels and flights, deputy government spokeswoman Rachada Dhnadirek told in a briefing.

A 40% discount will cover 10 hotel nights for each traveller, up from 5 nights earlier, while a subsidy on flights will double to 2,000 baht, she said.

The tourism-reliant country has had no foreign tourists since April due to the travel ban.

Thailand expects to receive 8 million foreign tourists this year, down 80% from last year’s record 39.8 million visitors whose spending accounted for 11.4% of GDP.

The cabinet also approved keeping valued-added tax at 7% for another year until September 2021 to help reduce living costs and lift business confidence, Finance Minister Predee Daochai said in a statement. The VAT will be reviewed yearly.

“That will help economic recovery after the Covid-19 outbreak situation eases,” he added.

By REUTERS
Source: Bangkok Post

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