Bangkok – The subsidy scheme for domestic tourists might be reduced to 500,000 rooms from 1.5 million after the Thai cabinet this week cut the proposed budget of 8.7 billion baht (nearly 250 million USD) by half, according to the Tourism Authority of Thailand (TAT).

In Phuket, Thailand (Photo: AFP)

TAT Governor Yuthasak Supasorn said the majority of the revised budget worth 4 billion baht will be allocated to tourism stimulus packages, with the TAT working directly with the private sector.

The "We Travel Together" hotel subsidy might have a lower budget, with the number of privileges cut to 400,000-500,000 rooms, he said.

The proposal worth a combined 8.7 billion baht that was submitted to the cabinet on December 20 saw the lion's share worth 5.4 billion baht allotted for the new phase of We Travel Together.

However, the Tourism and Sports Ministry requested a new direction for the revised budget as it wants to prioritise marketing stimulus packages formerly known as "Booster Shots".

If the number of rooms is capped at 500,000, this phase will use 1.8 billion baht, while the remainder will go to Booster Shots projects, he said.

The cabinet is scheduled to consider the new proposal next week, while the duration of the subsidy lasts for six months, starting next year.