Thailand’s tourism tax stalled again despite 11 billion baht potential
Political shifts blamed for delays as industry calls for clear action
Thailand’s plan to introduce a tourist tax for foreign visitors remains stalled due to political delays, despite full readiness and strong industry backing.
Initially backed by the National Tourism Policy Committee in February 2023, the fee would charge inbound travellers 300 baht by air or 150 baht by land or sea, applying only to overnight visitors. Despite its potential to raise over 11 billion baht annually, the controversial tax is still nowhere in sight.
The scheme, modelled after Japan’s departure tax, was designed to support tourism infrastructure and provide insurance coverage for international travellers. Up to 60 baht of the 300-baht fee would be allocated for tourist insurance, offering 30 days of coverage with payouts of up to 1 million baht in the event of death and 500,000 baht for injuries.
However, critics argue the tax is redundant, pointing out that most travellers already hold private insurance. Others in the tourism industry worry about negative sentiment, especially with tourist numbers yet to fully rebound.
“The idea is ready. The legal structure is ready. But the political will hasn’t kept pace,” said a source from the Tourism Ministry.
The delay is not due to lack of preparation. Subcommittees were established to oversee fund allocation and fee collection, and the Tourism Council of Thailand (TCT) backed the initiative. But repeated changes in government, from Prayut Chan-o-cha’s administration to Srettha Thavisin, and now Paetongtarn Shinawatra, have continually pushed the project back.
In 2023, former Tourism and Sports Minister Phiphat Ratchakitprakarn postponed the launch to September due to technical issues in differentiating foreign and Thai passengers during payment collection. Before the handover of power in August that year, the tax was shelved indefinitely.
By 2024, a brief push to restart the plan fizzled once more amid weak short-haul markets, especially a 30% drop in Chinese arrivals. In May this year, a new online immigration system was introduced to support future collection, but implementation was postponed yet again in July due to soft demand.
Now, with only four months left in the current government’s term, new Tourism and Sports Minister Artthakorn Sirilatthayakorn has expressed support, but acknowledged the timeline is unrealistic, reported Bangkok Post.
Concerns also remain over the transparency of fund usage. The TCT is urging for clearer mechanisms to ensure the money genuinely benefits tourism infrastructure and community initiatives.
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