FX.co ★ Thailand to Launch Measures to Boost Domestic Tourism

Thailand's cabinet has authorized a new set of incentives to stimulate domestic tourism, according to a finance ministry spokesperson on Tuesday, as the administration endeavors to rejuvenate the lagging economy, reports Reuters. These incentives encompass tax deductions for local travel and improvements to hotels, constituting part of a broader stimulus initiative targeting economic growth beyond the anticipated 2.2% this year. Recent economic data indicates that Thailand's GDP expanded by 2.8% in Q2 of 2025, a decline from the 3.2% growth observed in Q1. The accommodation and food services sectors have demonstrated particular weakness, with a growth of only 2.1% in Q2, down from 7.2% in Q1, primarily attributed to a reduction in both inbound tourism and domestic travel. Foreign tourist arrivals in Q2 amounted to 7.136 million, marking a 12.2% decrease compared to the previous year. On the other hand, domestic tourism saw a growth of 2.1%, a deceleration from the 2.6% recorded in Q1. The country's economy had advanced by 2.5% last year.