The private sector is seeking alternative solutions to promote tourism after the Board of Investment's refusal to offer any privileges for hotel renovation work.
Kalin Sarasin, vice-chairman of the Thai Chamber of Commerce (TCC), said the BoI had turned down a proposal to promote hotel renovation by his working group on the promotion of tourism and Mice (meetings, incentives, conferences and exhibitions).
He will now work with the Thai Hotels Association to ask the Revenue Department for a tax reduction in exchange for investment in hotel renovation.
With the number of hotel rooms exceeding demand, Thailand has had the lowest room rates in the region for many years.
"Supporting hotel renovation and improving services should enhance competitiveness, respond to growing tourism and suit the situation in Thailand instead of giving privileges to only new hotel projects," Mr Kalin said.
While the BoI has not extended any privileges for hotel renovation, it has already supported man-made tourist attractions and sites in communities.
Privileges are available on condition that investors work closely with local administration organisations, cooperatives or community-based enterprises.
The privileges are not available in Bangkok, Krabi, Phangnga, Phuket, Hat Yai, Koh Samui, Cha-am, Hua Hin, Chiang Mai's Muang district and Pattaya.
They include a five-year income tax holiday for general operators and three-year income tax exemption for the businesses of mother companies eligible for BoI support.
The tax waiver must not exceed the amount of investment in community-based tourist attractions.
Meanwhile, the Thailand Convention and Exhibition Bureau (TCEB) will hold the Domestic Mice Mart at Bangkok's Queen Sirikit National Convention Center on May 30. The business-to-business event will facilitate negotiations between about 300 tour service providers and companies to increase trips this year.
TCC members have been encouraged to organise trips, meetings and seminars.
A plan to promote night tours with illuminations in Ayutthaya has not been completed because it is related to as many as 70 agencies and they have not reached an agreement on many issues including the payment of electricity fees.
Mr Kalin said there were proposals for structural investment to strengthen tourism markets.
They include the development of Samae San port in Sattahip district of Chon Buri to serve cruises. The port could handle big vessels and become a national port for cruises similar to the one in Singapore, he said.
The revival of a large convention centre project on Mai Khao beach in Phuket to promote Mice was also proposed. The TCEB has agreed to study the proposal, which might be a public-private partnership because it is on state land, Mr Kalin said.