Thailand’s tourism industry has always been vital to the country’s economy, especially in times of slack demand for accommodation. The government’s latest effort to encourage domestic travel, the “Travel Thailand Half-Half” program, was launched on July 1, 2025, with high hopes. However, the proposal to subsidize 40-50% of hotels and motels for domestic travelers was greeted with extreme doubt by both hotels and tourists. With sustained technical difficulties, slow registration, and low participant numbers, many hotels had to pull out of the program. Instead, they choose to have their own direct promotions under the “Thai Price” scheme, offering more straightforward and attractive deals to Thai tourists.

Slow Start and Unstable Systems

The “Travel Thailand Half-Half” program, designed to run from July to October 2025, has faced numerous challenges. Although it was hoped that the program would kickstart the tourism sector by offering substantial discounts to domestic travelers, it has struggled to gain momentum. Hotel operators have expressed concerns over the frequent technical glitches in the booking system, which have left travelers unable to make reservations or complete payments. Notably, the system’s requirement for cash payments, excluding card transactions, has made the process even more cumbersome for potential customers.

Furthermore, the complexity of the registration process and the lack of clear communication from the Tourism Authority of Thailand (TAT) have left many hotels feeling insecure about their participation. There are concerns that hotels may not be able to claim reimbursements from the government, even if travelers book under the scheme. This uncertainty has prompted several hotels to suspend their involvement until the system becomes more reliable.

Limited Budget for the Stimulus Scheme

Another key issue that has contributed to the program’s underperformance is the limited budget allocated for the scheme. With only around 300-400 million baht available per month, the funds are seen as insufficient to drive significant growth in occupancy rates or generate meaningful demand for domestic tourism. This has further discouraged hotels from participating in the program, especially as many have found that bookings through government channels are not yielding enough revenue to cover the anticipated subsidies.

Shift to “Thai Price” Campaigns

In response to the challenges faced by the “Travel Thailand Half-Half” program, many hotels, especially in popular tourist destinations such as Pattaya, Koh Samui, Rayong, and Khao Yai, are opting for their own direct promotions. These “Thai Price” campaigns, which are tailored to local tourists, offer simpler, more straightforward deals that do not rely on the complex booking system of the government program.

While the “Thai Price” deals may be slightly more expensive than the heavily subsidized rates available through the government scheme, they offer clear advantages in terms of ease of use and certainty. For many travelers, the simplicity of booking directly with hotels through these promotions is far more attractive than navigating the bureaucratic red tape of government subsidies. Hotels have found that this approach appeals to price-conscious travelers, even if the cost difference is only a few hundred baht.

Consumer Behavior: A Preference for Third-Party Apps

Another key development that has impacted the success of the government program is the shift in consumer behavior toward using third-party apps for booking accommodations. Most tourists now prefer platforms such as Agoda and Booking.com over government-run schemes. Reports from various hotel managers indicate that a significant portion of bookings, up to 70-80%, are made via these apps.

Despite the government’s 500-baht travel coupons, third-party app deals often provide better prices and offer a more streamlined booking experience. Many travelers are prioritizing convenience and value over complex government programs. This trend reflects a broader shift in the way travelers engage with the tourism industry, highlighting the growing dominance of digital platforms in the sector.

Key Destinations See Some Uptake

Despite the challenges faced by the “Travel Thailand Half-Half” scheme, certain destinations have shown better results in terms of bookings. According to data from TAT, as of July 19, Chonburi (Pattaya) has been the most popular destination under the program, followed by Prachuap Khiri Khan, Phetchaburi, and Nakhon Ratchasima. These destinations have seen a relatively higher uptake of government subsidies, though they still account for a small fraction of the total entitlements available.

However, the program still has around 50% of its 500,000 entitlements left unclaimed, which has led to calls from officials urging the public to take advantage of the remaining opportunities.

Government Plans to Simplify the Process

In an attempt to salvage the program and increase participation, the government has pledged to simplify the registration and booking processes. Tourism and Sports Minister Sorawong Thienthong emphasized that the government is committed to supporting the tourism industry and providing affordable travel opportunities for domestic tourists.

As part of this effort, the Ministry of Tourism and Sports is working on several additional tourism stimulus projects. These include initiatives targeting the overseas market, collaborations with online booking platforms, and image-building campaigns featuring celebrity endorsements. The total budget for these new initiatives is expected to be around 3.96 billion baht.

The government has also planned to roll out tourism campaigns in key cities and emerging destinations, such as the Chiang Mai–Lamphun Night Market, with the aim of further boosting the country’s tourism industry.

The Road Ahead for Thailand’s Tourism

Though it was hard for the “Travel Thailand Half-Half” program, it rather illustrated how tourism is changing. At last, many people opt for mobile booking apps as being quicker, easier, and simpler than using their smartphones via the traditional route. With customers making this choice between convenience and better value, it has had a profound effect on both hotel owners and travelers themselves.

As the policy comes under increasing fire, governments must adapt to the evolving situation and make sure questions are answered that people like travelers or those working in the tourist industry ask. Future stimulus projects will be dependent on simplifying processes so customers know what they are getting and taking the tourism sector through a digital transformation.