Thailand Sets Extra Holidays to Spur Tourism-Reliant Economy

Pathom Sangwongwanich and Anuchit Nguyen
·2-min read

(Bloomberg) -- Thailand’s cabinet approved two additional holidays next year to encourage people to travel during the long weekends to stimulate tourism and accelerate growth in Southeast Asia’s second-largest economy.

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The special holidays on June 2 and Aug. 11 next year being Mondays will allow people to plan longer trips during those weekends, government officials said at a briefing on Bangkok on Tuesday. The cabinet also declared Jan. 2, 2026 as a holiday that will stretch the new year break to five days. Public holidays in 2025 will total 21 days, officials said.

Tourism-reliant Thailand has in recent years granted additional holidays to support its travel industry and ensure its recovery from the pandemic blow. The sector accounts for about 12% of Thailand’s gross domestic product and nearly a fifth of jobs. The nation’s economy has lagged the expansion pace of its neighbors in the past decade, notching up an average annual growth rate of just 1.9%.

The cabinet also approved a total of 75 billion baht ($2.2 billion) in cheap loans to support the nation’s sluggish property sector. State-owned Government Housing Bank and Government Savings Bank will give loans to finance purchases of residential properties, construction and renovation, the Finance Ministry said in a statement.

More stimulus measures are set to be unveiled next week, Deputy Finance Minister Julapun Amornvivat told reporters. Prime Minister Paetongtarn Shinawatra is scheduled to chair the meeting of a panel set up to oversee the government efforts to boost the economy on Nov. 19, he said.

The panel will consider short- and medium-term proposals from the ministries of finance, commerce and tourism besides discussing the next phase of a cash handout program, Julapun said.

The declaration of additional holidays will also be in line with the Paetongtarn administration’s move to designate next year as the year of tourism and sports, deputy government spokeswoman Sasikan Wattanachan said.

About 30 million tourists have visited the country so far this year, on course to meet Thai government’s full-year target of 36.7 million. In 2019, Thailand saw record foreign arrivals — almost 40 million — which generated $60 billion in revenue.

Foreign tourist arrivals to Thailand — popular for its vibrant nightlife, beaches and national parks — is on course to top the pre-pandemic record next year as the recovery in global travel demand gathers momentum, online travel platform Agoda said last week.

(Updates with stimulus plans in fourth paragraph.)

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