Government assures hotel operators that programme to spur low-season travel will not be scrapped

The Ministry of Tourism and Sports has assured hotel operators that the government will not cancel the 3.5-billion-baht subsidy scheme for domestic tourists during the low season, though the project will be delayed a month.

Minister Sorawong Thienthong said the ministry also acknowledged foreign tourists’ concerns about a downturn in the Thai tourism industry, a topic widely shared and discussed on the Bangkok Post Facebook page this week.

Mr Sorawong said the subsidy was expected to be submitted to the cabinet this month, but the ministry asked the Tourism Authority of Thailand to revise the conditions to help distribute income in second-tier cities rather than concentrating them in a few main destinations as in the past.

He said the government still has sufficient funds for the project, but the recent proposal from the Association of Thai Travel Agents requesting a subsidy for chartered flights from China requires careful evaluation.

There are several factors deterring Chinese arrivals, including tourism policies from Beijing, and financial support might not help much, said Mr Sorawong.

He said the ministry had gathered feedback from foreign tourists posted on the Bangkok Post Learning Facebook page on Tuesday, which went viral among some tourists.

Thais and foreigners shared their disappointment with Thai tourism, such as expensive hotels, complicated procedures for the Thailand Digital Arrival Card, unpleasant trips plagued by chronic marijuana smokers, dual pricing for foreigners at many attractions, and deteriorating conditions in tourist destinations.

Mr Sorawong said the ministry is discussing the main points posted to immediately address them. However, many obstacles are beyond the ministry’s authority and require cooperation from related ministries or authorities to devise solutions, he said.

Thienprasit Chaiyapatranun, president of the Thai Hotels Association (THA), said the association also learned from criticism of pricey rooms.

As most hotels use dynamic pricing, which hikes prices during high-demand periods, many five-star hotels are charging higher room rates than during past high seasons, as the number of tourists from Europe has surged.

He said that even though the hotel business doesn’t have a policy to regulate ceiling prices, unlike domestic airfares, the THA has asked members to not overcharge.

Reaping benefits by hiking room rates during the high season without improving quality could be to the long-term detriment of the industry, as reflected by tourists’ comments, said Mr Thienprasit.

Prices during the low season should decline rapidly as the Chinese market has shrunk, he said.

The government should not cancel the hotel subsidy programme as local travellers are the main market for the hospitality industry during the rainy season, said Mr Thienprasit.

“If the government has budget constraints, it should consider pausing the digital wallet programme and reserve the budget to cope with the possible impact from the US tariffs instead,” he said.