The government wants to tap the country's robust tourism growth, which is expected to average 9-10% a year over the next 5-6 years, in a bid to narrow income disparity.
According to Tourism and Sports Minister Weerasak Kohsurat, the tourism sector has recorded strong growth over the past decade but has yet to generate income for most local communities or grass-roots people.
"The government this year thus set as one of its priorities to implement a policy to support income distribution to local communities in its best bid to reduce income disparity in the country," Mr Weerasak said.
The cabinet late last year approved tax breaks for tourism spending in 55 provinces, a move aimed at spurring travel and distributing income to provinces dubbed "secondary".
The tax breaks, scheduled to be effective from Jan 1 to Dec 31, 2018, will be offered to individual travellers who spend on accommodation, food and drinks, as well as to corporations that organise seminars and meetings at these secondary locations, which welcome fewer than 4 million tourists a year.
Those who spend on accommodation, food and drinks at secondary locations in 2018 can use their receipts to claim a tax deduction of up to 15,000 baht, while companies can claim up to 100% of the cost of seminars and training sessions.
The government is estimated to lose 200 million baht in revenue from the tax breaks.
These incentives are viewed as necessary because a Tourism and Sports Ministry survey found that 50% of tourists prefer travelling in the 22 main provinces, including places like Bangkok, Chiang Mai, Phuket, Surat Thani and Khon Kaen.
Travellers will be allowed to use receipts instead of full tax invoices to claim their deduction, as most tourism operators in secondary provinces, including homestay and food outlets, make an income of less than 1.8 million baht a year.
According to the latest report of the Asean Tourism Forum, growth in foreign visitors to Thailand is forecast at 9-10% this year.
Mr Weerasak said growth of foreign visitors to Thailand in both numbers and revenue is expected to stand at 9.5% this year, thanks to the improving global economy and Thailand's political stability.
Total revenue from the tourism industry is anticipated to reach 3.03 trillion baht this year, up 9.1% from 2017.
The ministry aims for 37.81 million foreign visitors this year, up 6.8% from 2017.
Revenue from foreign tourists is predicted to reach 2.02 trillion baht, up 10% from last year.