Tourism sector seeks tax breaks

The tax measures were part of a 10point proposal highlighting short and mediumterm schemes submitted to Finance Minister Surapong Suebwonglee by the operators follow¬ing their meeting with Tourism Minister Weerasak Kowsurat.

The VAT exemption would allow travel agents to sell cheaper winter packages to inbound and local tourists.

Permission for foreign firms in Thailand to claim a 200percent tax reduction for the expenses of holding seminars here would build up the MICE (meetings, incentives, confer¬ences and exhibitions) market.

The tour businesses also called for the government to support agencies in organising seminars or training over two years, foster collaboration between tour operators and state transport units such as Thai Airways International in offering tour packages for special routes, and hike the budg¬et for promoting domestic and over¬seas travel.

Meetings of ChineseThai clans should also be promoted.

Apichart Sankary, president of the Association of Thai Travel Agents, said the proposed VAT cut would help boost the tourism industry as the cost of packaged tours would drop by 7 per cent.

If the ministry can finish its review of the measures within one month, members could offer attractive packages to tourists for the high season, he said.

The treasury would lose Bt6 billionBt7 billion of VAT receipts, but it was worth it if it would help boost tourist numbers, he added.