Thailand approves measures to boost domestic tourism amid plunging foreign arrivals

By Reuters October 21, 2025 | 04:55 pm PT

Tourists from China dressed in traditional Thai costumes pose as they visit Wat Arun, known as the Temple of Dawn, in Bangkok, Thailand, Nov. 21, 2024. Photo by Reuters

Thailand's cabinet has approved new incentives to boost domestic tourism, a finance ministry official said on Tuesday, as the government tries to revive a sluggish economy.

The steps, which include tax deductions for domestic travel and hotel renovations, are part of a series of stimulus measures aimed at lifting economic growth above 2.2% this year.

Southeast Asia's second-largest economy grew 2.5% last year, lagging peers.

Thailand's foreign tourist arrivals from Jan. 1 to Oct. 12 dropped 7.54% from the same period a year earlier, the Tourism Ministry said.

There were 25.1 million foreign visitors during the period, it said in a statement. Malaysia was the largest source market with 3.61 million visitors, followed by China with 3.58 million.