Thais give cold shoulder to US$927 tax break aimed at propping up domestic travel

So far, though, Trang businesses are not seeing a surge of local visitors taking advantage of the travel tax perk. The programme is too short, some observers say, and the nation’s sour economy and large household debt are causing Thais to reduce spending on non-essentials such as travel.

“Things have been pretty quiet recently even though there were inquiries about bookings,” said Chotirot Rodmuang, marketing manager of Jaravee Tour, which provides tours of Trang’s islands such as Ko Kradan. November and December reservations are down about 50 per cent year on year, Chotirot said.

About 1.3 million Thai nationals visited Trang during the first nine months of 2025, up 3.8 per cent year on year and generating 6.7 billion baht of tourism revenue, according to the Ministry of Tourism and Sports data.

“Some travellers aren’t that interested in the deduction because their annual income may be below the tax brackets so they aren’t liable to pay taxes,” said Kedkanok Tanaengchuan, manager of Ruarasada Hotel in Trang. It also takes a considerable amount of time for businesses to be integrated into the government’s deduction programme, she said.