Thailand's Tourism Industry Faces Challenges Amid Technical Issues with Domestic Tourism Subsidy

Strategic Insights -

Thailand's tourism industry is grappling with technical issues surrounding the government's 'Half-Half Thai Travel' domestic tourism subsidy, leading several hotel groups to temporarily halt their participation. The Tourism Authority of Thailand (TAT) is working to resolve the problems, but hotels face challenges with a fixed pricing policy, outdated processes, and slow approval times. Meanwhile, the country's tourism industry is under pressure, with fewer international visitors and lower revenue than expected.

Key Takeaways:

  • At least four main challenges are facing hotels involved in the 'Half-Half Thai Travel' domestic tourism subsidy: fixed pricing policy, outdated processes, lack of automatic verification of payment slips, and slow approval times.
  • Dusit Thani hotels in Pattaya and Hua Hin have paused new bookings for the subsidy due to technical issues, though existing paid reservations will be honoured.
  • Minor Hotels reported that 26 of its Thai properties had registered, but only eight have been approved so far, highlighting slow approval times.
  • 2,292 hotels have their rates published on the programme's website, while another 3,047 properties are still waiting for bank checks.
  • Thailand's tourism industry is under pressure, with only 16.61 million international tourists visiting from January to June 2025, a 4.56% decrease from the same period in 2024.
  • Chinese visitors, usually the largest group, have dropped sharply, with a 32.71% decrease in the first five months of 2025.
  • Tourism revenue from January to June 2025 reached 768.2 billion baht, with the yearly forecast reduced from 3.5 trillion baht to 3 trillion baht (about $90.3 billion).
  • The TAT is now focusing on attracting high-value visitors from places like the Middle East and Europe and promoting travel to less-visited cities.

Statistics:

  • 16.61 million international tourists visited Thailand from January to June 2025, a 4.56% decrease from the same period in 2024.
  • 2.26 million arrivals in May 2025, a 13.93% decline from the previous year.
  • 1.95 million Chinese tourists visited Thailand in the first five months of 2025, a 32.71% decrease from 2024.
  • 2,292 hotels have their rates published on the programme's website.
  • 3,047 properties are still waiting for bank checks to join the scheme.
  • Thailand's tourism revenue from January to June 2025 was 768.2 billion baht.
  • The yearly forecast for tourism revenue has been reduced from 3.5 trillion baht to 3 trillion baht (about $90.3 billion).

Sources:

  • Prachoom Tantiprasertsuk, head of marketing at the Thai Hotels Association, as quoted in [The Nation](https://www.nationthailand.com/news/3037445).
  • Tourism and Sports Minister Sorawong Thienthong, as quoted in [The Bangkok Post](https://www.bangkokpost.com/thailand/general/2137562/).
  • TAT data, as cited in [The Nation](https://www.nationthailand.com/news/3037445).
  • Minor Hotels, as reported by [The Bangkok Post](https://www.bangkokpost.com/thailand/general/2137562/).