The Thai government’s latest tourism initiative, the “Travel Thailand Half-Half 2568” program, has officially received cabinet approval, aiming to stimulate domestic travel and support local economies amid a challenging tourism landscape. Launching on July 1, 2025, with travel privileges available from July 4 through October 31, this program offers a government subsidy to encourage Thais to explore their own country, particularly during weekdays.
Under this scheme, the government will cover 50% of travel expenses for trips taken on weekdays (Monday to Friday) and 40% for weekends and public holidays. This differential support is designed to ease congestion during peak travel days and spread tourist spending more evenly across the week and regions. Registration opens exclusively on the Amazing Thailand App, requiring participants to be Thai nationals aged 18 or older, with identity verification through the ThaID application.
Travelers can claim up to five privileges or nights, split between main cities (22 provinces) and secondary cities (55 provinces), with government subsidies capped at 3,000 baht per room per night. Beyond accommodation, the program offers 500 baht vouchers per privilege for spending on restaurants, souvenir shops, OTOP (One Tambon One Product) stores, tourist activities, spas, and vehicle rentals. Payments must be completed before 11 PM on the booking day, with accommodation payments due at least three days prior to travel. Merchants will receive government reimbursements within 14 working days after transactions.
By structuring the program to incentivize travel to secondary cities with a higher subsidy rate (50%) compared to main cities (40%), the government hopes to boost tourism in less-visited regions and help distribute economic benefits nationwide. The total budget for this initiative is 1.75 billion baht, supporting 500,000 travel privileges.
However, the tourism sector is currently facing significant headwinds. On June 17, 2025, the 22nd Tripartite Committee approved an increase in the minimum daily wage to 400 baht for selected sectors, including hotels rated two stars and above or those with more than 50 rooms, as well as certain service venues like karaoke bars and cocktail lounges. This wage hike, effective July 1, 2025, is expected to raise hotel labor costs by 10-15%, with some provinces experiencing increases up to 18.69%. For example, southern border provinces such as Narathiwat, Pattani, and Yala will see wages rise from 337 baht to 400 baht per day, despite limited tourist numbers in these areas.
Mr. Thiensithi Chaiyapatranan, President of the Thai Hotels Association (THA), expressed concerns about the timing and fairness of this selective wage increase. He emphasized that while Bangkok’s wage rise of 7.5% (from 372 to 400 baht) is manageable due to its strong tourist influx, the sharp increases in less-visited provinces will exacerbate financial pressures on hotels already struggling with low occupancy and rising operational costs.
“The increase in labor costs by 10-20% for provinces with fewer tourists will undoubtedly pose long-term challenges for the tourism and hospitality sectors,” Mr. Thiensithi said. “It unfairly targets specific occupations and businesses, creating inequality within the industry and potentially discouraging hotel operators from seeking licenses or investing in quality improvements.”
THA has formally requested Prime Minister Paetongtarn Shinawatra to reconsider the minimum wage adjustment, advocating for a more equitable policy that reflects the realities of all business operators and the broader economic climate. The association warns that the selective wage hike could undermine Thailand’s competitiveness in the global tourism market, especially as neighboring countries ramp up efforts to attract international visitors.
The tourism sector’s current struggles are compounded by a sustained decline in tourist arrivals, particularly from key Asian markets like China, Malaysia, and Russia. Global economic uncertainties and safety concerns have further dampened travel demand. A joint survey by THA and the Bank of Thailand in April 2025 revealed that the overall foreign tourist count for the year is expected to fall compared to 2024, with short-haul markets (excluding China) contributing to reduced hotel revenues in the second quarter.
While some hotels catering to long-haul markets such as Europe and Russia anticipate increased arrivals, the average occupancy rate slipped from 56% in April to an expected 51.5% in June 2025. More than half of the surveyed hotels foresee a decline in Q2 revenues compared to the same period last year, reflecting the low season’s impact and shifting tourist behaviors.
Despite these challenges, the “Travel Thailand Half-Half 2568” program is viewed as a timely intervention to stimulate domestic tourism during the low season, running from June through September 2025. Industry insiders estimate the initiative might boost hotel revenues by up to 5% compared to last year without such measures, providing some relief to struggling businesses.
THA also advocates for a comprehensive national tourism strategy involving five key measures: proactive image promotion, enhanced safety protocols, streamlined service facilitation, infrastructure development, and year-round attraction creation. They believe these steps, alongside government support programs, can revitalize Thailand’s tourism industry and offer visitors compelling reasons to choose the country despite rising costs and competition.
As the country prepares to welcome more domestic travelers through the “Travel Thailand Half-Half 2568” project, balancing economic stimulus with sustainable industry growth remains a delicate task. The government’s dual approach of subsidizing travel while grappling with rising labor costs underscores the complexities facing Thailand’s tourism sector in 2025.
Ultimately, the success of these initiatives will hinge on cooperation between policymakers, industry stakeholders, and travelers themselves, aiming to ensure that exploring Thailand remains both accessible and rewarding for all.
