Thailand declares July 31 as extra holiday to spur tourism, economy
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The additional July 31 holiday creates a long six-day vacation period to encourage Thais to travel domestically and spend more.
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BANGKOK - Thailand’s Cabinet approved an additional public holiday on July 31 to set a six-day break for most workers in a bid to spur tourism and private consumption.
The extra holiday will ensure most public and private establishments are shut between July 28 and Aug 2, deputy government spokesman Rachada Dhnadirek said in a statement on Tuesday.
A weekly Cabinet meeting – usually held on Tuesday – will be postponed, she said, adding that the Bank of Thailand and the Labour Ministry have been asked to consider approving July 31 as a bank and labour holiday.
The country’s financial markets usually follow the central bank directive on holidays.
The long stretch of holidays will encourage domestic travel and spending, boosting the tourism industry, Ms Rachada said.
Tourism is among the few bright spots in the Thai economy that is facing headwinds from a decline in exports and investment amid a political gridlock following the general election in May.
Thailand will have a total of 20 public holidays in 2023, Ms Rachada added.
Various agencies involved in providing essential public services have been asked to take steps to ensure uninterrupted operations, she said.
The shares of Thai hotel operators rallied in Bangkok trading, with the Stock Exchange of Thailand Tourism and Leisure Index increasing 2.8 per cent to snap five straight days of declines.
Hospitality group Minor International jumped 4.8 per cent, the most since Nov 11.
Hotel operator Erawan Group rose 2.3 per cent to a one-week high.
Rising tourist arrivals have been the key driver for the economy in 2023, with the Bank of Thailand forecasting a growth rate of 3.6 per cent – up from 2.6 per cent in 2022.
That target now faces risks from a delay in new government formation, even after more than two months of the nation holding a general election.
The Ministry of Tourism and Sports expects foreign arrivals to more than double this year to 25 million with total tourism revenue of 2.38 trillion baht (S$92 billion).
The industry has earned 1 trillion baht since the start of 2023 as foreign arrivals totalled 14.8 million between Jan 1 and July 23, the ministry said on Tuesday.
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