Sign in Subscribe
Tourism

Thailand Unveils 750-Million-Baht Tourism Stimulus Package

Strategic Insights

— 2 min read

The Tourism Authority of Thailand (TAT) has rolled out a 750-million-baht subsidy for airlines and tour groups to revitalize the country's tourism industry. The 'Summer Blast China and Overseas Market' programme is one of seven projects worth 3.96 billion baht allocated to the TAT by the government on June 24. The ambitious plan aims to generate 33.5 billion baht in revenue, create 226,102 jobs, and collect 7.78 billion baht in taxes, with a projected 49-fold return on investment.

Key Takeaways:

  • The 750-million-baht subsidy will be distributed on a first-come, first-served basis, with the goal of stimulating the tourism industry and generating revenue.
  • The 'Summer Blast China and Overseas Market' programme is a key component of the stimulus package, allocated 350 million baht for chartered flights from China, Taiwan, and South Korea.
  • The programme targets adding 140,000 tourist arrivals via 1,000 flights, with a load factor of over 80% eligible for a 350,000-baht subsidy.
  • Tour companies worldwide can participate by arranging groups of at least 30 people to travel to Thailand and stay for a minimum of four nights, with an incentive of 150 million baht.
  • The TAT expects the scheme to penetrate 15 second-tier cities in China and persuade operators to fly to less busy airports in Thailand, such as Krabi and Samui.
  • Airlines can submit proposals requesting a subsidy if they are able to increase frequencies, open new routes, or increase their load factor, with a commitment to attaining passenger number targets set by the TAT.
  • The TAT plans to publicise the campaign to international airlines through their overseas offices, with every airline showing an interest in joining the scheme.

Statistics:

  • The 7 projects allocated to the TAT by the government on June 24 are expected to generate 200 billion baht for the economy.
  • The TAT aims to create 226,102 jobs and collect 7.78 billion baht in taxes as a result of the stimulus package.
  • The 'Summer Blast China and Overseas Market' programme targets adding 140,000 tourist arrivals via 1,000 flights.
  • The subsidy for the scheme is 350,000 baht per flight with a load factor of over 80%, and 300,000 baht for flights with a load factor of 60-79%.
  • The joint promotional campaign with commercial airlines aims to bring in at least 500,000 inbound travellers.
  • The incentive for tour companies is set at 150 million baht, with a target of attracting 150,000 tourists.

Sources:

  • Tourism Authority of Thailand (TAT)
  • Pattaraanong Na Chiangmai, deputy governor for international marketing for Asia and the South Pacific at the TAT
  • Thapanee Kiatphaibool, TAT governor
  • "Tourism Authority of Thailand allocates 3.96 billion baht to 7 projects" (Source: Tourism Authority of Thailand)

Read more