The government is aiming for 36.7 million foreign visitors in 2024, compared with a record of nearly 40 million in pre-pandemic 2019. PHOTO: AFP

BANGKOK – Thailand’s Cabinet on June 25 agreed to extend a waiver on operating fees for hoteliers for two more years to support the recovery of the country’s tourism sector. It also approved a subsidy for rice farmers.

The exemption of the annual fee of 40 baht (S$1.48) per hotel room from July 2024 to June 2026 will cost the government 54 million baht in lost revenue, deputy spokesman Karom Phonphonklang told a news conference.

Waiving the fee will help reduce expenses for hotel operators that have been impacted by the Covid-19 pandemic and may remain unable to recover, he said.

Tourism is a key driver of the Thai economy, which has lagged regional peers, as it faces high household debt and borrowing costs as well as weak exports.

The government, which is targeting 3 per cent economic growth in 2024 after 2023’s 1.9 per cent expansion, has said tourism will continue to underpin economic growth.

Thailand received 16.84 million foreign tourist arrivals since the start of 2024 to June 23, 2024, up 36 per cent year on year, with spending of 795 billion baht, tourism ministry data showed.

China was the biggest source market with 3.31 million tourists during the period.

The government is aiming for 36.7 million foreign visitors in 2024, compared with a record of nearly 40 million in pre-pandemic 2019.

The Cabinet also approved a subsidy of 30 billion baht for rice farmers to buy fertiliser, which is expected to help 4.68 million rice-farming households, the government said in a statement.

Thailand, the world’s second-largest exporter of the grain after India, earlier said rice exports may reach 8 million tonnes in 2024. REUTERS

Published Date: June 25, 2024