Thailand holds back Domestic Travel Subsidy Program

Thailand has suspended its domestic travel subsidy program prior to the peak holiday season to investigate alleged irregularities in the government-funded program, which was meant to help the tourism industry affected by the COVID-19 pandemic.

According to Mr. Yuthasak Supasorn, Governor of the Tourism Authority of Thailand, the authorities are examining corruption complaints and grafting in the “We Travel Together” program, which offers subsidies up to 40 per cent in air tickets and hotel room rentals.

He said during making the announcement that the online platform, which allows people to sign up for the program, may be return next week at the earliest or after the new year.

The travel subsidy program has been successful in increasing the occupancy rate of local hotels affected by the global travel disruption as a result of the coronavirus pandemic. The program increased the average occupancy rate to 34 per cent in October, compared to just one figure in April, according to Mr. Yuthasak Supasorn.

The program to offer an additional one million rooms at subsidized price to travelers has been postponed. The local holidaymakers have already been offered 5 million rooms as part of the program which began on July 18.

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Thailand is counting on a boost to its tourism industry to get out of the recession. With the central bank forecasting, it will take at least two years for the second largest economy in South East Asia to return to pre-pandemic growth levels. In 2019, international tourism arrivals generated more than $60 billion in revenue from an estimated 40 million visitors.

While Thailand has relaxed certain restrictions at the entrance of international tourists, the industry struggled to attract visitors as officials maintained a mandatory quarantine for 14 days upon arrival in the midst of a wave of confirmed infections around the world.

Although Thailand has relaxed most of its coronavirus measures to allow companies and business to fully reopen their doors, it has maintained a state of national emergency to prevent a resurgence of the COVID-19 outbreak.

In regards to COVID-19 transmission in Thailand, the country has reported a total number of 4,261 confirmed cases which are under treatment and 60 patients have died due to virus. However, 3,977 patients who tested positive to COVID-19 have completely recovered from the virus, as of Wednesday (Dec 16).