The decision was reached at a meeting of the Centre for Economic Situation Administration chaired by Prime Minister Prayut Chan-o-cha, reports the Bangkok Post.
Government spokesman Thanakorn Wangboonkongchana said after the meeting that the government decided to add 1 million more room rights to the We Travel Together hotel subsidy programme and extend it from the end of this month to the end of September.
The present phase of the scheme offered 2mn room rights, until May 31. All rights were taken up, according to its website.
Under the package, the government meets 40% of the room rate, to a maximum B3,000 a night, and 40%, or up to B2,000, of the air ticket.
Mr Thanakorn said the Tour Teaw Thai package will also be extended, from the end of April to the end of September.
This programme is aimed at helping tour group operators by offering a 40% subsidy discount on tour packages.
The Association of Domestic Travel, Thai Chamber of Commerce (TCC) and Tourism Authority of Thailand (TAT) have orchestrated calls for the government to continue the subsidy schemes to promote domestic travel.
It was earlier this week, when TAT Governor Yuthasak Supasorn said cooperation from hotels was important to stimulate domestic trips without solely depending on a government budget and asked hotels to add another 1mn rooms to the We Travel Together programme.
Yet, the idea received tepid response from the industry. Notably, Marisa Sukosol Nunbhakdi, president of the Thai Hotels Association (THA), said most hotels had already reduced their room rates by 50%.