Impact of domestic tourism stimulus likely to disappoint

The government’s domestic tourism co-payment scheme is likely to provide only modest support to the sector, which is weighed down by Thailand’s weak economic outlook, according to Kasikorn Research Center (K-Research).

- SOMRUEDI BANCHONGDUANG

K-Research expects 205 million domestic trips this year, representing a 2.2% year-on-year increase and generating 1.14 trillion baht in revenue for annual growth of 2%.

However, the co-payment scheme is not expected to significantly lift growth due to prevailing economic challenges, noted the research unit.

The Tourism Authority of Thailand launched the co-payment programme on Tuesday, offering up to 3,000 baht per room per night for accommodation, with a total of 500,000 entitlements available. The scheme runs from July to October 2025, aiming to stimulate travel during low season.