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 to Aug. 2, Government deputy spokeswoman Rachada Dhnadirek said in a statement Tuesday.
A weekly cabinet meeting, usually held on Tuesday, will be postponed, she said, adding the Bank of Thailand and Labor Ministry have been asked to consider approving July 31 as a bank and labor 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, Rachada said. Tourism is among the few bright spots in the Thai economy that’s 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 this year, Rachada said. Various agencies involved in providing essential public services have been asked to take steps to ensure uninterrupted operations, she said.
Rising tourist arrivals have been the key driver to the nation’s economy this year with the BOT forecasting a growth rate of 3.6%, up from 2.6% 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.
Thailand’s Ministry of Tourism and Sports expects foreign tourist arrivals to more than double this year to 25 million with total tourism revenue of 2.38 trillion baht ($69 billion).
(Updates with details throughout.)
