Thai Hotel Association Says Tax Incentive Misses Target

The Thai Hotels Association (THA) said in Bangkok on 31 October 2025 that the government’s tax incentive for hotel renovations is not well targeted. Chairperson Thienprasit Chaiuapatranun noted that the scheme mainly benefits large or five‑star hotels, leaving smaller properties burdened.

The incentive allows hotel companies or partnerships to claim a tax deduction equal to twice the actual renovation, expansion or asset‑upgrade cost, and applies to projects carried out between 29 October 2025 and 31 March 2026. The government also accelerated the release of seminar budgets, but the allocation has not increased for more than a decade, making revenue from government events lower than that from regular tourists.

THA proposes a dedicated soft‑loan (low‑interest loan) program for small‑scale hotel renovations, arguing that tax cuts are ineffective when working capital is scarce. Targeted support could preserve occupancy rates and Thailand’s tourism image, especially for three‑star‑and‑below hotels still struggling after the pandemic.