The government of Thailand recently rolled out a domestic tourism co-payment scheme in an effort to bolster the struggling tourism sector. However, experts from Kasikorn Research Center (K-Research) are cautious about the scheme’s potential impact due to the country’s weak economic conditions.
K-Research projects a slight uptick in domestic trips this year, estimating around 205 million trips with a 2.2% increase compared to the previous year. This influx of tourists is expected to generate approximately 1.14 trillion baht in revenue, reflecting a modest growth rate of 2% annually.
Despite these projections, K-Research remains skeptical about the co-payment scheme’s ability to significantly boost growth within the tourism industry given the prevailing economic challenges faced by Thailand. The research unit highlights factors like a sluggish economy, political uncertainties, natural disasters, and an increasing trend of outbound travel among Thai citizens as ongoing obstacles for domestic tourism.
The Tourism Authority of Thailand initiated the co-payment program to incentivize travel during the low season from July to October 2025. The scheme offers subsidies of up to 3,000 baht per room per night for accommodation, totaling 500,000 entitlements.
As Thai travelers navigate through uncertain times and evolving spending patterns post-pandemic, K-Research predicts that despite the launch of the co-payment initiative, domestic tourism may only grow by a marginal rate of 1.4% in the latter half of the year.
An interesting trend highlighted by K-Research is the shift towards secondary cities as preferred destinations among Thai tourists. In 2025 alone, it is estimated that about 41.4% of Thai travelers will opt for these lesser-known locations—a significant increase from previous years before the pandemic hit.
However, while secondary cities are gaining popularity among tourists, they contribute only 28% towards domestic tourism revenue; major tourist hubs continue to dominate with a substantial share of 72%. Factors such as lower average spending per trip in secondary cities at around 2,800 baht per person compared to major cities’ average spend of approximately 5,000 baht reflect this disparity.
Moreover, changes in consumer behavior have been observed post-pandemic with more emphasis on day trips rather than extended stays. Approximately 51% of Thai domestic tourists now prefer shorter excursions—an evolving trend that businesses and policymakers need to consider when strategizing for future tourism initiatives.
The broader challenge facing Thailand’s domestic tourism industry stems from an increase in outbound travel activities fueled by visa-free programs and aggressive marketing efforts by international tour operators—posing another hurdle for local businesses looking to attract travelers within their own borders.
In conclusion,
despite efforts made through initiatives like
the co-payment scheme,
Thailand’s domestic tourism sector continues
to grapple with numerous challenges.
From economic uncertainties
to changing travel preferences,
the path to recovery appears slow,
highlighting
the resilience and adaptability required
by stakeholders
in navigating
these turbulent times ahead.
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