Thai tourism stakeholders are bracing for logistical cost fluctuations as the government implements targeted fuel subsidies to stabilise domestic transport networks ahead of the Songkran holiday period.
From April 1, authorities will roll out performance-based financial relief for public transport and freight vehicles, although broader nationwide fuel price caps remain uncertain.
The Ministry of Transport confirmed the subsidy scheme will run until April 30 and will rely on existing GPS tracking systems to verify actual usage.
Assistance includes a four-baht (US$0.12) per litre diesel subsidy for interprovincial buses and a flat-rate allowance for registered ride-hailing operators. Fares for state-affiliated interprovincial services will remain pegged to a baseline diesel price of 33 baht per litre throughout the Thai New Year festivities.
While the relief package aims to prevent immediate passenger fare hikes, macroeconomic pressures persist across the travel ecosystem.
The national Oil Fuel Fund is currently carrying a 42 billion baht deficit. This shortfall leaves the Ministry of Energy unable to guarantee a sustained ceiling on general retail fuel prices during the peak holiday consumption period. Additionally, crude oil prices exceeding US$120 per barrel continue to strain supply chains. The Land Transport Federation of Thailand has already signalled tiered freight rate increases, citing fuel expenses that now represent half of total operating costs.
Provincial authorities are exploring independent mitigation strategies to ease localised travel costs. For example, Chiang Rai municipality has introduced a complimentary electric coach service, with three green buses connecting commercial districts and key tourist landmarks.
At the national level, policymakers are evaluating further interventions to protect the visitor economy from inflationary pressures. Speaking to the Bangkok Post, transport minister Phiphat Ratchakitprakarn confirmed that relief measures for the travel sector remain under review.
“This (subsidy scheme) is an initial, targeted measure aimed at vulnerable groups,” he said, noting that discussions with the Ministry of Tourism and Sports are underway to determine suitable support for chartered tourist coaches.
Canliel has been part of the airline’s leadership team for more than 14 years, supporting its strategic and financial development, including its public listing in 2024.
Handl joins from Abu Dhabi National Hotels, where he was responsible for a portfolio of 15 properties, and brings more than 30 years of experience with brands including Park Hyatt, The Ritz-Carlton, Aman and Rosewood.
