Thai Finance Ministry Considers Tax Incentives For Hotel Guests

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AFTERMATH

Finance Ministry considers tax incentives for hotel guests

By Wichit Chaitrong,

Suchat Sritama

The Nation

The Finance Ministry is considering stimulating domestic travel by offering hotel guests tax deductions for their room bills.

BANGKOK: -- "The earnings from the tourism industry are not worth much, maybe 6 per cent of gross domestic product, but it involves a lot of workers," Finance Minister Korn Chatikavanij said yesterday.

He said his deputy Pradit Phataraprasit has been assigned to work on the proposal, aimed at promoting tourism as foreigners have not yet returned to Thailand in the aftermath of the political violence.

Some countries recently lifted warnings against visiting Thailand but many others have left their alerts in place.

Korn was meeting vendors gathered at Bitec to offer them moral support. The Mall Group has launched a trade fair running till Sunday at the Bang Na convention centre to help small retailers who had suffered from the political unrest of the past two months. The vendors and The Mall Group are selling their products at cheaper prices than usual.

Supaluck Umpujh, vice chairman of The Mall Group, said Siam Paragon, the company's flagship shopping mall, had lost Bt2 billion in revenue during its twomonthlong shutdown.

The Tourism Authority of Thailand is also organising a series of activities, events and campaigns to restore tourism.

It plans to host four major domestic consumer fairs and megafamiliarisation trips over the next four months.

TAT Governor Suraphol Svetasreni said the first event would be Tourism Fair 2010, scheduled to held at Muang Thong Thani from June 913. About 200,000 visitors are expected to spend Bt250 million at the event.

"This will be the first event in the postcrisis period to revive the tourism industry," he said.

TAT will start its national annual campaign, Amazing Thailand Grand Sale, in the middle of this month, which will continue to August.

The authority will also host the Golf and Dive Expo next month and close with two events in September - another domestic tourism fair and Thailand Travel Mart 2010.

The agency would join hands with Thai Airways International and the private sector to invite 1,000 foreign writers and travel companies to the Kingdom to observe the tourism situation in the wake of the political unrest.

"The country's tourism was damaged over the past two months and now we're ready to welcome visitors from around the world," he said.

Simon Burgess, global director of sales at Dusit International, said the hotel group is staging the "Dusit Together for Thailand" campaign to help restore confidence in Thailand's accommodation industry.

Dusit's sales and marketing teams are visiting over 300 Bangkokbased companies and media to show appreciation to their customers and business partners for their continued support to Dusit and all Thais.

Thailand would be back on the world's hospitality stage, stronger than ever, he said.

Dusit International has also introduced the "Dusit Take 2" promotion, offering special privileges for guests to enhance their summer experience with extra value at all Dusit International hotels and resorts across Thailand, Manila, Dubai and Cairo from now until August.

Mike Batchelor, managing director for investment sales in Asia at Jones Lang LaSalle Hotels, said that despite the recent disturbances in Thailand, Bangkok in particular, investor sentiment for mediumterm trading in Phuket and Bangkok is positive at 39.7 per cent and 22.2 per cent.

Last year saw a new trend with AsiaPacific hotel transactions exceeding the Americas in terms of total sales volume for the first time ever, he said.

The region's contribution and emergence as a global player is set to continue. Sales is forecast to contribute US$3.7 billion (Bt121 billion) or 29 per cent of global sales. Total global transaction volume is forecast to reach $12.8 billion this year, he added.

-- The Nation 2010-06-03

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[webfact]

Finance Ministry approves travelling receipts for tax deduction

BANGKOK (NNT) -- The Finance Ministry has approved the use of hotel accommodation receipts for tax deduction, as measures to stimulate the tourism industry.

Finance Minister Korn Chatikavanij floated the idea last week, at a televised interview saying that business operators have proposed the idea for the government to allow personal income tax deduction for accommodation expenses of travelers. Since then Mr Korn has vowed that he will propose the measures to the Revenue Department.

Currently, the ministry is expediting the Revenue Department to conduct a feasibility study of the measures so that it could be issued by this year, Mr Korn said. However the rate and value of deduction is yet to be determined.

This is an opportunity to target domestic travel amid dampened foreign confidence in traveling into the Kingdom, Mr Korn said. The economic growth has delayed following the two month anti-government riots that have paralyzed economic, business and tourism activities. Thailand's dependency on tourism accounts up to 6% of the GDP. The minister added that the move will help restore foreign confinence.

Mr Korn added that the Kingdom managed to maintain its economic stability despite the anti-government demonstrations. We still have high amounts of forex reserves on top of low public debt and positive account balance and growths in exports, the finance minister said.

-- NNT 2010-06-02

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[MikeyIdea]

Good initiative but is it really going to be needed? I listened to 103 Mhz and a professor from Hakankaa Uni this morning and he thought that GDP would drop 1 to 1.5% because of the political instability. I don't think that it will drop anywhere near 1.5% at the end of the day. Tourists will come back faster than we think (just like after the tsunami) and the instability has now been replaced with convincing political support for the prime minister.

Abhisit survived the non-confidence vote with flying colours, he is sitting strong, perhaps (foreign) investment will surprise a bit the next-following 6-months too. I think tourism will

Edited June 3, 2010 by MikeyIdea

[zigistar]

LOL @ the income out of tourisme are not much....this is the biggest BS i read for a very long time.Take al tourists away and look where Thailand will be in few years.

[kevbap]

'up to 6%' WHAT? i am reading that correct, aren't I? do you think they could publish where the other 94% is, it would be interesting reading. rice 45% rubber45% noodle soup 4%.......?

[eggomaniac]

LOL @ the income out of tourisme are not much....this is the biggest BS i read for a very long time.Take al tourists away and look where Thailand will be in few years.

He said it was 6%. It's 6%. What is BS about facts?

Tourism is 9% of the World's economy, 25% of Hawaii's, 2.5% of Ethopia's, 6% of Thailand's.

Rice exports are way, way more important to Thailand than the tourists, some of which cause more trouble than good.

[eggomaniac]

'up to 6%' WHAT? i am reading that correct, aren't I? do you think they could publish where the other 94% is, it would be interesting reading. rice 45% rubber45% noodle soup 4%.......?

Google it yourself, or check Wiki. Rice was 40% if i remember correctly. clothing gems, all kinds of stuff. It's humoress how many farangs think they are so important to keeping Thailand alive. 6% isn't chunk change, but it's not the lodestar, either.

Just Google Erath and look at all the little blue Panorama pictures and the clustered areas they are. Then look at the vast areas where no tourist Posted a picture.

There are vast areas of Thailand and even parts of Bkk that seldom see farangs.

[Phuket Stan]

'up to 6%' WHAT? i am reading that correct, aren't I? do you think they could publish where the other 94% is, it would be interesting reading. rice 45% rubber45% noodle soup 4%.......?

Google it yourself, or check Wiki. Rice was 40% if i remember correctly. clothing gems, all kinds of stuff. It's humoress how many farangs think they are so important to keeping Thailand alive. 6% isn't chunk change, but it's not the lodestar, either.

Just Google Erath and look at all the little blue Panorama pictures and the clustered areas they are. Then look at the vast areas where no tourist Posted a picture.

There are vast areas of Thailand and even parts of Bkk that seldom see farangs.

It never fails to amaze me when I see posters here with so much ignorance of what Thailand does produce and export and how an economy works...remeber Wiki is your friend

[rkidlad]

'up to 6%' WHAT? i am reading that correct, aren't I? do you think they could publish where the other 94% is, it would be interesting reading. rice 45% rubber45% noodle soup 4%.......?

Google it yourself, or check Wiki. Rice was 40% if i remember correctly. clothing gems, all kinds of stuff. It's humoress how many farangs think they are so important to keeping Thailand alive. 6% isn't chunk change, but it's not the lodestar, either.

Just Google Erath and look at all the little blue Panorama pictures and the clustered areas they are. Then look at the vast areas where no tourist Posted a picture.

There are vast areas of Thailand and even parts of Bkk that seldom see farangs.

It never fails to amaze me when I see posters here with so much ignorance of what Thailand does produce and export and how an economy works...remeber Wiki is your friend

Well what about foreign investment? Nearly every Thai I know in Bkk with a good job works for an international company. (Not including people who have their own business) Why don't they work with Thai companies? Because the money is crap and there's no opportunity to go up the ladder. This is what Thais who work for international companies tell me.

What do I know, though? I just work for an international company here and know how much money my particular company generates for Thailand's economy.

I'm from England I know exactly how important foreign investment is in my own country. And with all the crap that's happened recently, who would wanna invest here at the moment?

We all need each other in this world. No matter how blinkered our veiws are on our own wonderful country and the outside world.

Edited June 3, 2010 by rkidlad

[kevbap]

'up to 6%' WHAT? i am reading that correct, aren't I? do you think they could publish where the other 94% is, it would be interesting reading. rice 45% rubber45% noodle soup 4%.......?

Google it yourself, or check Wiki. Rice was 40% if i remember correctly. clothing gems, all kinds of stuff. It's humoress how many farangs think they are so important to keeping Thailand alive. 6% isn't chunk change, but it's not the lodestar, either.

Just Google Erath and look at all the little blue Panorama pictures and the clustered areas they are. Then look at the vast areas where no tourist Posted a picture.

There are vast areas of Thailand and even parts of Bkk that seldom see farangs.

It never fails to amaze me when I see posters here with so much ignorance of what Thailand does produce and export and how an economy works...remeber Wiki is your friend

my post was very tongue in cheek, if you really believe noodle soup 4% !!! well get a life!

[sirchai]

LOL @ the income out of tourisme are not much....this is the biggest BS i read for a very long time.Take al tourists away and look where Thailand will be in few years.

Burma is only about 40 years behind Thailand because there's no tourism industry.

[hardy1943]

LOL @ the income out of tourisme are not much....this is the biggest BS i read for a very long time.Take al tourists away and look where Thailand will be in few years.

He said it was 6%. It's 6%. What is BS about facts?

Tourism is 9% of the World's economy, 25% of Hawaii's, 2.5% of Ethopia's, 6% of Thailand's.

Rice exports are way, way more important to Thailand than the tourists, some of which cause more trouble than good.

Well how about adjusting THE SUPER BAHT to a realistic exchange rate?

[Lizard2010]

Wow we certainly save a lot then.

[asiawatcher]

It would be a good start to support the Bangkok Indie Fest in August showcasing films from over 600 entries but then again, due to the previous TAT Governors rorts of 1.8M USD to hers and her daughters pockets, I guess TAT will be avoiding film festivals like the plague.

But in reality the world goes to the picture theatres, buys downloads and watches Free To Air TV so why not show case positive events in Thailand that work and are tried and proven. And the organisers are short on sponsors so it would be a great start.

Oh well - wishful thinking...

[bangon04]

LOL @ the income out of tourisme are not much....this is the biggest BS i read for a very long time.Take al tourists away and look where Thailand will be in few years.

He said it was 6%. It's 6%. What is BS about facts?

Tourism is 9% of the World's economy, 25% of Hawaii's, 2.5% of Ethopia's, 6% of Thailand's.

Rice exports are way, way more important to Thailand than the tourists, some of which cause more trouble than good.

I think he means the trickle down effect - Thai ministry statistics are usually poorly presented and often complete nonsense. If you only count spend on flights and hotels, it is not the same as counting taxi fares, restaurant takings, massage fees, telephone / email fees, buying pointless OTOP souvenirs and fake goods in the markets, overpriced tours to the crodile farms etc etc etc, without even considering the hidden benefits where tourists become expats, supporting huge families in Isaan, the construction industry, real estate, auto sales, or just send a monthly "salary" via Western Union to someone they see for 2 weeks every year.

[bangon04]

"TAT Governor Suraphol Svetasreni said the first event would be Tourism Fair 2010, scheduled to held at Muang Thong Thani from June 913. About 200,000 visitors are expected to spend Bt250 million at the event.

"This will be the first event in the postcrisis period to revive the tourism industry," he said."

Another TAT TiT event - so if the admission ticket is free, and the food is free at the cafe, and the parking is free, and the participating tourism related companies pay nothing for the privilege of exhibiting / having a stall with staff there, that makes THB average 1250 per person. And what does it cost to hire Impact for 4 days, salaries, policing, and the "special consultation fees" for the senior figures in the ministry? After all someone deserves a bonus for plucking the figure of 200,000 and 250 million out of the air and publishing it.

Surely this is the turning point - a revival is definitely on the way.

[jayinoz]

'up to 6%' WHAT? i am reading that correct, aren't I? do you think they could publish where the other 94% is, it would be interesting reading. rice 45% rubber45% noodle soup 4%.......?

Google it yourself, or check Wiki. Rice was 40% if i remember correctly. clothing gems, all kinds of stuff. It's humoress how many farangs think they are so important to keeping Thailand alive. 6% isn't chunk change, but it's not the lodestar, either.

Just Google Erath and look at all the little blue Panorama pictures and the clustered areas they are. Then look at the vast areas where no tourist Posted a picture.

There are vast areas of Thailand and even parts of Bkk that seldom see farangs.

Come on... what about all the 'little extras' Farangs pay for that are never recorded or acknowledged- Far more than 6% of their GDP IMO. Farangs include all other asians as well- anyone not Thai. Although Thais see a Farang as a white male or female only. Yet it supposed to be Foreigner.

A lot of the industry is left unrecorded. Thailand would be Burma without Tourism in a few years- IMO. It may end up that way anyway if Taksin gets his way in several years...

[stingray]

LOL @ the income out of tourisme are not much....this is the biggest BS i read for a very long time.Take al tourists away and look where Thailand will be in few years.

It's not only the hotelerie business. They forgot totally, that for example in Pattaya are 6 large shopping centres and maybe a 1'000 seven elevens, markets, vendors, 1000's of beautyshops, bars, noodle stalls, car rents, real estate businesses, workers for constructions, restaurants, etc. can go on and on. All those businesses would be close, all job lost, no 7% VAT income from all the turnovers and towns like Pattaya woud be comming to ghosttowns immidently, after the touristes leave. They should be more avake to understand economic.

[witold]

Well what about foreign investment?

Foreign investment has nothing to do with Tourism. Many - if not most - places that have huge foreign investment are never visited by tourists and probably never will be. Tourists are not that big on looking at oil fields, for example. Foreign investment is run by strict internal business formulas that discount for stability, etc.

What are the income tax brackets in Thailand?

[IMA_FARANG]

LOL @ the income out of tourisme are not much....this is the biggest BS i read for a very long time.Take al tourists away and look where Thailand will be in few years.

I disagree with that. Tourism is a trap...it produces only low level jobs, most of the money goes not to the workers, but the owners and managers, and it develops a service-industry mentality among those who work in the Tourist industry.

Trying to develop a country using only Tourisim is like trying to cure an alcholic with more booze...it leads to a dependence on the cheap thrill, and ruins the country in the end.

What Thailand needs is to develop it's industry...real jobs for real work.

Tourisim is a trap, that seems good at first, but later you can't get out of it. I work here in Crete, a tourist destination. Just come here and ask some of the Greeks what they think about tourisim as the national industy. It ruins the infrastructure...Crete is having problems with the water supply now...because the 5 star hotels soak up the water like a sponge. The people who live here have to pay for that water...the hotels don't pay their fare share of the cost of the infrastructure.

There are some farangs on this forum who seem to think that if they spend enough time in the bars...and drink enough booze, scr*w enough bargirls....that means they "benefit" Thai society. They don't. That's the kind of tourisim Thailand does NOT need anymore.

You may disagree with me...but that is my opinion. This is not a "moral" position, it is based upon economic good sense. Thailand needs industry, not tourisim.

Edited June 3, 2010 by IMA_FARANG

[kevbap]

There are some farangs on this forum who seem to think that if they spend enough time in the bars...and drink enough booze, scr*w enough bargirls....that means they "benefit" Thai society. They don't. That's the kind of tourisim Thailand does NOT need anymore.

I'm sorry i totally disagree with the above statement, of course it benefits Thailand, people spending their hard earned cash here instead of maybe Spain. If you mean morally i would agree with you, but times are hard and people resort to anything to make some cash, why do beggars beg? Prostitution is the oldest industry in the world. I reckon now more than ever Thailand cannot pick and choose it's Tourists, i work in the tourism trade myself here for 6 years and have watched the tourist numbers slump, and businesses shut down. Where does that leave all the Thai people us farangs employ?

I will get off my soap box now, I am very distressed to see this wonderful country go downhill so fast, and on a personal level, i now find it harder to live and work here myself.

Kevin

[rkidlad]

Well what about foreign investment?

Foreign investment has nothing to do with Tourism. Many - if not most - places that have huge foreign investment are never visited by tourists and probably never will be. Tourists are not that big on looking at oil fields, for example. Foreign investment is run by strict internal business formulas that discount for stability, etc.

What are the income tax brackets in Thailand?

I never said it had anything to do with tourism. My reply was to a foreigner here who seems to think that 'foreigners' here in Thailand serve no purpose and Thailand would be fine without them.

My point is that what he said was absolute BS.

[bangkokburning]

Tax incentives. Glad the problem is solved - NEXT!

Why doesn't Thailand allow the 1000s of people the ability to have 10mos stay with hassles. This will do little for th emafia tourist industry but I am sure far more money will trickle down to the poor and angry mobs seen rioting these last two years.

GDP is not the issue. neither is helping common Thai's. Supporting big money is.

Forget investment - That's finished.

[Thai at Heart]

Surely the most profitable tourist for Thailand is the long stayer.

In terms of spreading the wealth, renting apartments, buying houses, eating out, shopping in Tesco, buying cars, educating kids etc is of far more economic and social benefits than a couple staying in a 5 star hotel or Johnny foreigner holding up the bar for 2 weeks.

And yet, they continue to make it expensive and complicated to retire or reside long term in Thailand in comparison with other countries nearby.

As far as I can see they want to make it tax deductible for a Thai tax payer to stay in a hotel. Oh, I can just imagine the amount of receipts to a total value 1 baht below the maximum that are going to get printed.

[ozzieman05]

Come on stop the Bullsxxt now

We have just seen the biggest problem in Thailand for longer than most can remember

so lets find real ways to fix the problem

Money gets to Issan 2 ways

1) The government gets the money then they spend money down the ladder till it gets to Issan policies

This works but going through red tape takes an arm and a leg to get over

2) Tourists spend money in Thailand

It has been proven 98% of every baht spend by a tourist goes first into the hands of a worker (many many are Issan workers) and then up the ladder back to the government

So yes money from tourism is only a small amount for the government, by a great great amount from the people up country

So get rid of tax on hotels in places where tourist stay, lets say 4 star down, get rid of tax in bar beers, any where where working class thais work with Tourists

What will happen

Tourist has more money left in his pocket

Spends more money on the street

This money pays the wages of girls and guys who work the tourist places

50 - 60% goes back to family in Issan

Massive problem in financial depleted Northern Thailand problem solved there for less peopl redy to fight the government

Girls working in Thailand make more money

It is a crime in Thailand for a single lady to have money in her pocket by Thai culyture

so it immediatly goes back into circulation

As the government says they would hardly miss it

But as 90 baht would be made back to the government as the money flow up the ladder from ever 100 baht spent they would also get a windfall in the end

Simple logic

Logic does not work in any government in any world country

[Rucharee]

Why stop at Tax Incentive for hotel.

Why not also tax incentive for shopper at Gayson Plaza.

I don't mind claiming back 37% tax from my GUCCI hand bag.