Hoteliers will get a waiver of the 40-baht fee per room per year until mid-2021 as part of Covid-19 relief.
The cabinet on Tuesday approved the proposal by the Interior Ministry, which would cost 31.3 million baht in state revenue.
The waiver takes effect from July 1 this year to June 30 next year.
The hotel sector is among those hard hit by the pandemic, paralysed by lockdowns and travel bans all over the world.
Thailand recorded zero foreign tourists in April after it closed borders and banned international passenger flights. In April last year, there were about 3.2 million foreign tourists who spent about 146 billion baht, according to a tourism ministry statement in late May.
The state planning agency predicted the number of foreign arrivals will plunge to 12.7 million this year from a record 39.8 million last year.
According to the Tourism and Sports Ministry’s data as of Tuesday, arrivals to Thailand dropped 52% from January to April this year to 6.7 million while tourism receipts plunged 53% to 332 billion baht.
Tourism is a key driver of Thai growth, with foreign tourist receipts accounting for 11% of gross domestic product last year.