The 10,000-baht digital wallet scheme is unlikely to benefit the tourism sector and some tourism operators are concerned about economic consequences that could discourage domestic travel.
Sanga Ruangwattanakul, president of the Khao San Road Business Association, said the scheme would mainly benefit the retail segment, and not those in services such as tourism.
As the Khao San area mostly comprises restaurants, bars and accommodation, with the majority of revenue derived from foreigners, it would not gain much benefit from the scheme, he said.
The areas in Phra Nakhon district that may benefit from this scheme would be the Bobae and Bang Lamphu markets, said Mr Sanga.
He said he does not expect the scheme to create as much of an impact for the economy as some are projecting.
The budget of 500 billion baht should be used for other projects, said Mr Sanga, while the 100-billion-baht fund being prepared for 13 industries, including wellness tourism and aviation, should focus on long-term investment, such as developing transport infrastructure and skilled labour to help make Thailand a regional hub.
Udom Srimahachota, vice-president of the Thai Hotels Association's western chapter, said the handouts would create a burden in terms of public debt and inflation, pushing up living costs and leading people to travel less next year.
Mr Udom said sentiment could worsen from this year, as many Thais are planning only one-day trips, spending less on food and products, and reducing overnight-stay trips.
He said hoteliers would like the government to consider allowing users to spend 3,000 baht from the handout for tourism purposes, such as hotel rooms.
To help stimulate local spending, the scheme could restrict usage to only independent hotels, which are still struggling to recover compared with international brands, said Mr Udom.
He said the competitiveness fund of 100 billion baht could be allocated to lure "quality visitors" to wellness tourism.
Tanit Choomsang, president of the Chiang Mai Restaurant and Bistro Association, said locals will travel back to their hometowns during the six-month eligibility period for the digital wallet scheme.
Thais typically spend more than one-third of their money on food ingredients and eating out at restaurants, he said.
Mr Tanit said the scheme should be made available for independent restaurants and local suppliers, which comprise the majority in Chiang Mai, not only large chain operators.
Restaurateurs are eager to prepare for the scheme once there is more clarity, he said.
However, Mr Tanit said operators remain worried about the rising minimum wage next year as it means higher expenses, while tourism spending has yet to recover to levels in 2019.
