The new set of measures is aimed at attracting foreign investment now that Thailand has lost its lustre in some sectors, such as electronics to neighbouring countries.

The BoI decided to shift its focus to promote the sectors in which Thailand has strong potential, such as service industries.

For instance, it yesterday decided to assist hoteliers who wish to expand their investment. They are to receive corporate income tax exemption for four years, but the value of exemptions should not exceed half the value of the investment made to improve the business.

The BoI will also support hoteliers who plan to set up hotels in new tourist destination areas promoted by the government.

Investors in hotels with no less than 100 rooms and with no less than a Bt500-million investment will receive special privileges including tax exemptions for imported machinery and corporate tax exemption for eight years.

Other tourism-related businesses, such as museums and health services, are to be included. If these service operators set up their businesses in Zone 2 or 3, they will receive special tax exemptions for machinery and corporate income tax for eight years.

The board also decided to promote integrated logistics services by supporting firms that transport goods to at least five countries.

The board also agreed to provide support to Logistics Park on the condition it is built on an area of more than 100 rai.

After suspending investment privileges to the shrimp farming industry in 1993 due to environmental concerns, the BoI board yesterday agreed to revive support for hi-tech shrimp farming with high environmental standards.

It also approved procedures to promote the procurement business to enable Thailand to become a hub for international auto parts. The BoI will support the operators by creating a database system to train workers.

The BoI will also promote innovation by providing for development in technology licensing networks, said Suriya.

Watcharapong Thongrung

The Nation