Cabinet set to weigh fresh requests today

The tourism and real-estate sectors and rural villages will receive a big financial boost if the Cabinet approves multibillion-baht proposals from several ministries today.

The Tourism and Sports Ministry alone will submit a set of 13 urgent measures involving a proposed state budget of more than Bt6.8 billion.

The secretary-general of the PM's Office will seek approval for another Bt6 billion for a sufficiency-economy rural-development programme.

In addition, the Finance Ministry will propose a new incentive to boost real-estate sales by offering home-buyers a tax-deductible allowance ranging from Bt200,000 to Bt500,000 a unit.

Tourism and Sports Minister Chumpol Silapa-archa said the proposed measures aimed at recovery were wide-ranging, including waiving visa fees for three months for visitors of all nationalities.

Thai Airways International will also consider reducing air fares by up to 50 per cent in a bid to encourage tourists to return to Thailand.

Moreover, the ministry will ask for a Bt6.8-billion budget to help small and medium-sized enterprises hit by the economic crisis and airport closures late last year.

There will also be an unspecified budget for advance payments to tourists inconvenienced by the 10-day airport seizures.

Each person may receive Bt2,000, said the minister.

International airports in Thailand will also cut aircraft parking and landing fees, to promote airline service to and from the Kingdom.

Earlier, the Tourism Authority of Thailand (TAT) received Bt450 million for marketing activities, including a plan to hold the "Amazing Thailand Grand Sale" from June to August.

During this period, shopping malls and other retailers will be invited to participate, with discounts of up to 50 per cent offered for selected goods and services.

TAT chairman Weerasak Kowsurat said there would also be a domestic-tourism campaign entitled "Bustling Thai Tourism, Burgeoning Thai Economy".

Weerasak will meet with private-sector representatives on January 30 to discuss further recovery measures for boosting tourism.

The latest TAT forecasts show international visitors making 15.48 million trips to Thailand this year and generating Bt600 billion in revenue.

Last year's figures are not yet finalised, but in 2007 there were 14.8 million visitors generating Bt531 billion in revenue.

Meanwhile, Government House sources said a Bt6-billion budget would be sought from the mid-year supplementary state budget to upgrade the quality of life in rural communities.

The funds will be disbursed via the previous government's Small, Medium, Large scheme, in which a small village with less than 500 people receives an extra budget of Bt200,000, while a medium-sized village with 500-1,000 people gets an extra Bt250,000.

A large village with more than 1,000 people receives an extra Bt300,000.

There are about 70,000 villages of various sizes throughout the Kingdom.