Tourism council suggests methods to increase purchasing power

The Tourism Council of Thailand (TCT) is urging the government to increase the purchasing power of locals by increasing the salary base of new civil servants to 25,000 baht per month, while distributing 1,000 baht in digital money to foreign tourists who visit certain parts of the country.
According to the TCT’s latest quarterly survey, 85% of Thais reduced their household expenses, with 83% slashing their budgets for tourism and leisure activities over other expenses.
Chamnan Srisawat, president of the TCT, said one option to fix persistent low purchasing power is adjusting the salary of new government officials to 25,000 baht per month.
To compensate for the wage hike among new recruits, the government should restrict the number of new employees in state agencies in proportion with actual demand, which could help ease public expenditure in the long run, he said.
The council also suggested the Labour Ministry increase the minimum wage based on professional skill level, which would encourage workers to upgrade their skills.
Mr Chamnan said estimates suggest the current minimum wage hike policy would not help Thai workers, instead mainly benefiting foreign workers who are employed in low-skill positions such as wait staff, shop assistants and cleaners.
The TCT voiced its concerns last week over declining purchasing power, as the tourism confidence index for the fourth quarter tallied 80, reflecting poor sentiment.
Typically the fourth quarter is the high season for tourism, meaning operators should be optimistic, he said.
The council predicted foreign arrivals this year would total 35.5 million, generating 1.8 trillion baht in revenue, which is 11% and 5.7% lower than the levels recorded in 2019, respectively.
The TCT also proposed the government consider offering 1,000 baht in digital money to foreign tourists to spend in certain areas of the country that require government support.
Mr Chamnan said this programme would motivate tourists to visit lesser-known destinations, generating income for second-tier provinces, while helping to improve negative sentiment from a stronger baht weakening foreigners’ purchasing power.
To mitigate stagnant cash flow among locals, the TCT requested the government launch a 10,000-baht interest-free loan scheme, which borrowers could gradually repay between 2025-2029.
Based on the TCT’s survey, he said 80% of respondents want the government to implement such a loan programme, while 60% want a resumption of the “Khon La Khrueng” co-payment scheme.