BANGKOK — Prime Minister Paetongtarn Shinawatra unveiled plans to strengthen Thailand’s creative industry, particularly film production, as part of a strategy to diversify economic ties with the United States amid changing global trade dynamics.
Speaking at the “Thailand: Opportunities, Hope, and Reality” forum organized by Prachachat Business, leading media in the Matichon Group, the Prime Minister addressed concerns about Thailand’s trade surplus with the US and potential scrutiny similar to that faced by China.
“With exports accounting for 60% of our GDP, and the US market representing 10%, we need to adapt our approach to maintain opportunities,” said PM Paetongtarn.
Following her recent Los Angeles meetings with Hollywood executives, the Prime Minister announced an increase in cash rebates for international productions from 20% to 30% with no ceiling. This move aims to attract more foreign filmmakers to Thailand.
She explained her focus on increasing revenue in this sector, citing that last year, 2023 alone, over 450 films from 40 countries have been shot in Thailand, among which 34 motion pictures are American productions. The filming industry has generated an estimated revenue of US$190 million last year.
By implementing the measure, it is expected that Thailand earns no less than US$290 million in revenue the next year from foreign film shoots in the country. Additionally, American production teams bring valuable know-how when they come to Thailand, which will help elevate Thai filmmaking skills. Beyond generating economic circulation, this also creates new employment opportunities
Gradual Rebate Tiers
Chatuchon Phakdiwanich, Director General of the Department of Tourism at the Ministry of Tourism and Sports, which is responsible for promoting foreign film productions in Thailand, detailed strategies to boost the economy through this sector.
In 2024, the number of international films and series shot in Thailand is expected to continue rising, generating more than $200 million or 7 billion baht in revenue. This trend reflects Thailand’s capability and readiness to host major film productions and position itself as a regional hub for international filmmaking.
Chatuchon explained that the Ministry of Tourism, through its Thailand Film Office (TFO), has received government funding to support international film crews under the cash rebate program.
The cash rebate program, outlined in the Ministry of Tourism’s 2017 regulations on incentive eligibility criteria and conditions, allows individuals or companies spending at least 50 million baht on film production in Thailand.
- Tiered rebate structure:
- 15% for investments over 50 million baht
- 20% for over 100 million baht
- 25% for over 150 million baht
- Additional benefits:
- 3% for shooting in secondary cities
- 3% for post-production work
- 5% for hiring Thai key personnel
Another important change is the abolition of the investment cap. Previously, in 2017, the cap on qualifying expenditure was limited to 65 million baht, which was later increased to 150 million baht in 2022. The latest revision allows unlimited amounts of investment to qualify for rebates under the specified conditions.
Scheduled for Implementation in Early 2025
The Director General of the Ministry of Tourism explained that the plan still has to be reviewed by the National Film and Video Committee. Once it is approved by this committee, it will be submitted to the Cabinet for consideration and then published in the Royal Gazette. The aim is to complete and implement the measures by early 2025.
“We recently presented our exhibition at the American Film Market 2024 (AFM 2024), one of the largest film markets in the United States and a major global film festival. The event, which took place in Las Vegas, USA, in early November 2024, aimed to promote Thailand’s high-quality film locations and the expertise of Thai production teams.”
The exhibition also highlighted Thailand’s facilities for hosting international film crews and briefed key US filmmakers on the new incentive rates.
The US is the third largest market for film productions in Thailand. In 2024, 28 US films were shot in Thailand, generating around 780 million baht in revenue by October 28, 2024. Participation in AFM 2024 is expected to attract film crews from the US and other countries, resulting in investments of over 1.5 billion baht.
2024: Cash Rebates Total 500 Million Baht
Chatutorn also announced that cash refunds for foreign film productions under the Incentive Measures in fiscal 2024 amounted to over 509 million baht for 15 films.
Notable productions include:
- The science fiction film “The Creator”,
- The successful US series “S.W.A.T. Season 6”,
- The worldwide blockbuster “Meg 2: The Trench”,
- The romantic comedy “Mother of the Bride”, set in Phuket,
- The historical dramedy mini-series “The Sympathizer”.
Global Incentive Competition
The incentive measures to support and promote international film production in Thailand are seen as a key strategy to increase the country’s competitiveness. They bring significant economic benefits, create jobs in the film industry and related sectors, distribute income to local communities and showcase Thailand’s culture and tourist attractions to a global audience. This exposure also promotes film-induced tourism.
Many countries around the world use similar incentives to attract filmmakers:
- Hungary and France offer tax rebates,
- Australia, Spain and the United Kingdom offer tax credits,
- Malaysia, the Philippines, South Korea, Iceland, India and Greece offer cash rebates, similar to Thailand.
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