Treasury mulls using state land for community tourism

The Treasury Department has floated the idea of leasing state land at reduced rates to develop community-based tourism and help local people.

If Thailand wants to shift towards becoming a service-based economy like Japan, the tourism sector, particularly communitybased tourism, should be supported and could distribute income to communities, said Patchara Anuntasilpa, director-general of the Treasury Department.

However, communities and enterprise communities might not be permitted to lease state land under the current law, so the department will need to seek the cabinet’s resolution to amend the law, he said.

For instance, working-age people who lived in the Amphawa community, before the floating market was developed and gained popularity, took work in other areas that offered higher income, leaving only aged people there. However, the situation changed once again as Amphawa floating market became one among the country’s top tourist destinations and those living in the area did not need to work in other areas.

Community-based tourism is a growing trend in Thailand, and people in several communities are gathering to develop tourism spots to draw tourists, he said, adding that the Champa Temple community in Bangkok’s Taling Chan farming community has skilful sculptors, artists and banana tree trunk carvers, as well as homestay providers for visitors.

The Treasury Department is responsible for managing 12.5 million rai of state land, and only 100,000 rai has been allocated for commercial use under the department’s supervision. It has set a new rental fee calculation of 3-5% for return on assets (ROA) for land used for commercial purposes, and 1% ROA for residential and farm use.

The new calculation is expected to boost the department’s revenue to 8 billion baht this year, from 7 billion forecast previously. The method has already been applied to the department’s land lease agreements with Bangchak Petroleum, Thai Oil and Airports of Thailand.

In 2016, tourism generated 2.51 trillion baht or 17.7% of Thailand’s GDP. Of the total, 1.64 trillion baht was derived from foreign tourists and the rest from local ones.

Tourism income last year jumped 11.1% from the previous year.

According to Tourism Authority of Thailand, accommodation contributed the highest income at 580 billion baht, followed by food and beverage at 448 billion, land transport at 136 billion, air transport at 122 billion, and sports and recreation at 100 billion. Tourism-related businesses employ 4.23 million workers.