PATTAYA, Thailand – Pattaya entertainment operators have expressed their support for the government’s decision to extend the reduced excise tax rate for nightlife establishments, including nightclubs, bars, and cocktail lounges, from 10% to 5% for another year. The measure, effective from January 1 to December 31, 2028, is aimed at boosting the economy and the tourism industry in Thailand.
Damrongkiat Pinitkarn, Secretary of the Pattaya Entertainment and Tourism Industry Association, explained that this extension comes as a positive development, especially during the New Year holiday season. The government’s policy to extend the operating hours of nightlife venues from 2 AM to 4 AM has enabled business owners to increase revenue as international tourists have more time to spend, boosting the overall economy of Pattaya’s nightlife industry.
This excise tax reduction was first implemented following the easing of COVID-19 restrictions. If the tax rate had remained at 10%, operators would have faced higher costs, which would likely have led to increased prices for consumers. By reducing the excise tax to 5%, businesses can maintain stable prices, ensuring that both operators and tourists benefit without additional financial burden.
With the recovery of the nightlife industry post-COVID-19, Pattaya has seen a rise in new investments in entertainment venues. As a popular international tourist destination, Pattaya continues to attract both tourists and business investors, strengthening its position as a global nightlife hub. However, despite the influx of tourists, operators have noted that while visitor numbers remain steady, spending has not been as high as during the post-COVID boom, with the majority of tourists now coming from China, India, and Korea, while European visitors have decreased.