A tourism stimulus package, expected to include visa-fee exemptions for some countries and improved safety and security, will soon go before the cabinet so that the measures can be effective from next month.
Lavaron: Safety and sustainability key
The stimulus package is aimed at drawing foreign travellers to Thailand during the peak season after the recent sharp decline in Chinese tourists, who make up roughly one-third of arrivals.
The package must be enforced by late November and last through December to allow foreign tourists time to plan their trips to Thailand, Deputy Prime Minister Somkid Jatusripitak said after a meeting to deliver policies to the Finance Ministry's officials.
The Tourism Authority of Thailand, the Finance Ministry and national carrier Thai Airways International are teaming up to support the stimulus package, Mr Somkid said.
Arrivals from China fell 12% in August and grew just 3% during China's Golden Week holiday, raising concerns that arrivals from the mainland could miss the target of 10 million this year. Chinese visits have decreased notably after the Phuket boat accident that killed 47 Chinese tourists in early July.
Lavaron Sangsnit, director-general of the Fiscal Policy Office, said recently that the FPO was mulling measures related to the safety and sustainability of tourism after Chinese visitors began shunning Thailand.
Tourism income makes up about 20% of Thailand's economic value.
Mr Somkid said he instructed the Finance Ministry to map out a pre-emptive plan to brace for a potential global economic slowdown caused by the escalating tariff measures between the world's top two economies.
Infrastructure megaprojects, particularly those delayed from late this year, must be kept on track to bolster the domestic economy, he said, adding that countries with fragile domestic economies will feel the pinch.
The acceleration of big-ticket infrastructure projects will also keep the country's economy running smoothly during the transition period that will follow the general election, which will take around one month, Mr Somkid said.
Both the IMF and Asian Development Bank upgraded their economic growth outlooks for Thailand, and the country's net foreign direct investment has jumped 40% year-on-year.
Regarding an avalanche of tax bills yet to be approved by lawmakers, Mr Somkid said the Finance Ministry will ask for the Council of State to accelerate the vetting process for the amended Revenue Code on e-business tax.
Under the amended code, foreign-based digital platform operators providing services (including online games, sticker downloads, online advertisements, digital content and online hotel bookings) for Thai consumers are liable for VAT.
These online business operators are required to sign up for VAT payment through the Revenue Department's online system within 30 days of the law taking effect if their income in Thailand exceeds 1.8 million baht a year.
Mr Somkid said passing the land and buildings tax is another priority before the current government ends.