Connect with us

Opinion

Phuket Opinion: Slicing up Thailand’s cash cow

Legacy Phuket Gazette

Published

 on 

PHUKET: Reports of government plans to raise both arrival and departure taxes on foreign tourists reflect an almost complete lack of cohesion on tourism policy by government officials, and fly in the face of previous pronouncements that Thailand stands at the ready to become the “tourism hub” of the Asean region.

The proposed increases, a 100-baht hike in airport departure tax on international flights and a 500-baht “arrival” tax to help cover the costs of treating uninsured foreign tourists, need to be evaluated independently. The fact that they were put forward in the same week by different government ministries is likely to reinforce the perception abroad that Thailand’s reputation for hospitality is becoming increasingly eroded by greed and over-dependence on its premier cash cow: the tourism industry.

Some observers were quick to point out that the proposed increases, which still need to be approved by the relevant ministries, as well as the Cabinet, only account for a small percentage of increase in the cost of a holiday in Thailand.

The departure tax proposed by Airports of Thailand (AoT), which would rise from 700 to 800 baht on international flights and from 100 to 200 baht for domestic flights, is ostensibly justified by the need to improve services and facilities for passengers, such as the provision of free wireless and reimbursement for passengers affected by flight delays exceeding three hours. The expenses were not included in AoT’s original five-year capital expenditure plan for 2011 to 2015, or so the story goes.

How nice it must be to exist in a financial realm where planning oversights are so conveniently compensated for. According to respected industry analyst Bualuang Securities, the hike in price would increase the public company’s long-term core profit by 27 per cent and drive up short-term share prices dramatically. Under such circumstances it appears unlikely that the Civil Aviation Commission will reject the proposal, especially as those footing most of the bill to subsidize potential profits for AoT will be the all-too-familiar victims: foreign tourists and small-scale tourism industry operators.

As discouraging as the AoT increase might be for Phuket’s tourism industry, it probably would have slipped by with little notice had it not been proposed just days after the Ministry of Public Health put forward its amorphous plan to impose a 500-baht arrival tax to cover the cost of treating uninsured foreign tourists whose medical bills need to be absorbed by the Thai state.

There is simply no reason why Thai taxpayers and “quality tourists”, radically defined here as those who have enough sense to take out a travel insurance policy prior to arrival, should foot the bill for those who do not. This is an issue that needs to be urgently addressed in a systematic way, not bandied about as a potential new sluice gate into the seemingly endless, corruption-ridden trough of wasted taxpayer earnings, both Thai and foreign.

 

Get more from The Thaiger

Looking for your next home in Thailand? Let us match you with a local expert in minutes!

Thank you for your interest!

One of our agents will
reach out to you soon.

I want to:
  • Thailand (ไทย)+66
  • United States+1
  • United Kingdom+44
  • Australia+61
  • Afghanistan (‫افغانستان‬‎)+93
  • Albania (Shqipëri)+355
  • Algeria (‫الجزائر‬‎)+213
  • American Samoa+1684
  • Andorra+376
  • Angola+244
  • Anguilla+1264
  • Antigua and Barbuda+1268
  • Argentina+54
  • Armenia (Հայաստան)+374
  • Aruba+297
  • Australia+61
  • Austria (Österreich)+43
  • Azerbaijan (Azərbaycan)+994
  • Bahamas+1242
  • Bahrain (‫البحرين‬‎)+973
  • Bangladesh (বাংলাদেশ)+880
  • Barbados+1246
  • Belarus (Беларусь)+375
  • Belgium (België)+32
  • Belize+501
  • Benin (Bénin)+229
  • Bermuda+1441
  • Bhutan (འབྲུག)+975
  • Bolivia+591
  • Bosnia and Herzegovina (Босна и Херцеговина)+387
  • Botswana+267
  • Brazil (Brasil)+55
  • British Indian Ocean Territory+246
  • British Virgin Islands+1284
  • Brunei+673
  • Bulgaria (България)+359
  • Burkina Faso+226
  • Burundi (Uburundi)+257
  • Cambodia (កម្ពុជា)+855
  • Cameroon (Cameroun)+237
  • Canada+1
  • Cape Verde (Kabu Verdi)+238
  • Caribbean Netherlands+599
  • Cayman Islands+1345
  • Central African Republic (République centrafricaine)+236
  • Chad (Tchad)+235
  • Chile+56
  • China (中国)+86
  • Christmas Island+61
  • Cocos (Keeling) Islands+61
  • Colombia+57
  • Comoros (‫جزر القمر‬‎)+269
  • Congo (DRC) (Jamhuri ya Kidemokrasia ya Kongo)+243
  • Congo (Republic) (Congo-Brazzaville)+242
  • Cook Islands+682
  • Costa Rica+506
  • Côte d’Ivoire+225
  • Croatia (Hrvatska)+385
  • Cuba+53
  • Curaçao+599
  • Cyprus (Κύπρος)+357
  • Czech Republic (Česká republika)+420
  • Denmark (Danmark)+45
  • Djibouti+253
  • Dominica+1767
  • Dominican Republic (República Dominicana)+1
  • Ecuador+593
  • Egypt (‫مصر‬‎)+20
  • El Salvador+503
  • Equatorial Guinea (Guinea Ecuatorial)+240
  • Eritrea+291
  • Estonia (Eesti)+372
  • Ethiopia+251
  • Falkland Islands (Islas Malvinas)+500
  • Faroe Islands (Føroyar)+298
  • Fiji+679
  • Finland (Suomi)+358
  • France+33
  • French Guiana (Guyane française)+594
  • French Polynesia (Polynésie française)+689
  • Gabon+241
  • Gambia+220
  • Georgia (საქართველო)+995
  • Germany (Deutschland)+49
  • Ghana (Gaana)+233
  • Gibraltar+350
  • Greece (Ελλάδα)+30
  • Greenland (Kalaallit Nunaat)+299
  • Grenada+1473
  • Guadeloupe+590
  • Guam+1671
  • Guatemala+502
  • Guernsey+44
  • Guinea (Guinée)+224
  • Guinea-Bissau (Guiné Bissau)+245
  • Guyana+592
  • Haiti+509
  • Honduras+504
  • Hong Kong (香港)+852
  • Hungary (Magyarország)+36
  • Iceland (Ísland)+354
  • India (भारत)+91
  • Indonesia+62
  • Iran (‫ایران‬‎)+98
  • Iraq (‫العراق‬‎)+964
  • Ireland+353
  • Isle of Man+44
  • Israel (‫ישראל‬‎)+972
  • Italy (Italia)+39
  • Jamaica+1
  • Japan (日本)+81
  • Jersey+44
  • Jordan (‫الأردن‬‎)+962
  • Kazakhstan (Казахстан)+7
  • Kenya+254
  • Kiribati+686
  • Kosovo+383
  • Kuwait (‫الكويت‬‎)+965
  • Kyrgyzstan (Кыргызстан)+996
  • Laos (ລາວ)+856
  • Latvia (Latvija)+371
  • Lebanon (‫لبنان‬‎)+961
  • Lesotho+266
  • Liberia+231
  • Libya (‫ليبيا‬‎)+218
  • Liechtenstein+423
  • Lithuania (Lietuva)+370
  • Luxembourg+352
  • Macau (澳門)+853
  • Macedonia (FYROM) (Македонија)+389
  • Madagascar (Madagasikara)+261
  • Malawi+265
  • Malaysia+60
  • Maldives+960
  • Mali+223
  • Malta+356
  • Marshall Islands+692
  • Martinique+596
  • Mauritania (‫موريتانيا‬‎)+222
  • Mauritius (Moris)+230
  • Mayotte+262
  • Mexico (México)+52
  • Micronesia+691
  • Moldova (Republica Moldova)+373
  • Monaco+377
  • Mongolia (Монгол)+976
  • Montenegro (Crna Gora)+382
  • Montserrat+1664
  • Morocco (‫المغرب‬‎)+212
  • Mozambique (Moçambique)+258
  • Myanmar (Burma) (မြန်မာ)+95
  • Namibia (Namibië)+264
  • Nauru+674
  • Nepal (नेपाल)+977
  • Netherlands (Nederland)+31
  • New Caledonia (Nouvelle-Calédonie)+687
  • New Zealand+64
  • Nicaragua+505
  • Niger (Nijar)+227
  • Nigeria+234
  • Niue+683
  • Norfolk Island+672
  • North Korea (조선 민주주의 인민 공화국)+850
  • Northern Mariana Islands+1670
  • Norway (Norge)+47
  • Oman (‫عُمان‬‎)+968
  • Pakistan (‫پاکستان‬‎)+92
  • Palau+680
  • Palestine (‫فلسطين‬‎)+970
  • Panama (Panamá)+507
  • Papua New Guinea+675
  • Paraguay+595
  • Peru (Perú)+51
  • Philippines+63
  • Poland (Polska)+48
  • Portugal+351
  • Puerto Rico+1
  • Qatar (‫قطر‬‎)+974
  • Réunion (La Réunion)+262
  • Romania (România)+40
  • Russia (Россия)+7
  • Rwanda+250
  • Saint Barthélemy+590
  • Saint Helena+290
  • Saint Kitts and Nevis+1869
  • Saint Lucia+1758
  • Saint Martin (Saint-Martin (partie française))+590
  • Saint Pierre and Miquelon (Saint-Pierre-et-Miquelon)+508
  • Saint Vincent and the Grenadines+1784
  • Samoa+685
  • San Marino+378
  • São Tomé and Príncipe (São Tomé e Príncipe)+239
  • Saudi Arabia (‫المملكة العربية السعودية‬‎)+966
  • Senegal (Sénégal)+221
  • Serbia (Србија)+381
  • Seychelles+248
  • Sierra Leone+232
  • Singapore+65
  • Sint Maarten+1721
  • Slovakia (Slovensko)+421
  • Slovenia (Slovenija)+386
  • Solomon Islands+677
  • Somalia (Soomaaliya)+252
  • South Africa+27
  • South Korea (대한민국)+82
  • South Sudan (‫جنوب السودان‬‎)+211
  • Spain (España)+34
  • Sri Lanka (ශ්‍රී ලංකාව)+94
  • Sudan (‫السودان‬‎)+249
  • Suriname+597
  • Svalbard and Jan Mayen+47
  • Swaziland+268
  • Sweden (Sverige)+46
  • Switzerland (Schweiz)+41
  • Syria (‫سوريا‬‎)+963
  • Taiwan (台灣)+886
  • Tajikistan+992
  • Tanzania+255
  • Thailand (ไทย)+66
  • Timor-Leste+670
  • Togo+228
  • Tokelau+690
  • Tonga+676
  • Trinidad and Tobago+1868
  • Tunisia (‫تونس‬‎)+216
  • Turkey (Türkiye)+90
  • Turkmenistan+993
  • Turks and Caicos Islands+1649
  • Tuvalu+688
  • U.S. Virgin Islands+1340
  • Uganda+256
  • Ukraine (Україна)+380
  • United Arab Emirates (‫الإمارات العربية المتحدة‬‎)+971
  • United Kingdom+44
  • United States+1
  • Uruguay+598
  • Uzbekistan (Oʻzbekiston)+998
  • Vanuatu+678
  • Vatican City (Città del Vaticano)+39
  • Venezuela+58
  • Vietnam (Việt Nam)+84
  • Wallis and Futuna (Wallis-et-Futuna)+681
  • Western Sahara (‫الصحراء الغربية‬‎)+212
  • Yemen (‫اليمن‬‎)+967
  • Zambia+260
  • Zimbabwe+263
  • Åland Islands+358

    image

    Join the conversation and have your say on Thailand news published on The Thaiger.

    Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

    Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

    Click to comment

    You must be logged in to post a comment Login

    Leave a Reply

    Archiving articles from the Phuket Gazette circa 1998 - 2017. View the Phuket Gazette online archive and Digital Gazette PDF Prints.

    image

    Follow Thaiger by email:

    Thailand10 mins ago

    Health and safety a priority as kids return to Bangkok schools after two turbulent years

    Crime22 mins ago

    LINE app popular in Thailand warns users, look out for scams

    Singapore56 mins ago

    Indonesian cleric barred from Singapore over alleged extremism

    Sponsored5 hours ago

    Why you should study Thai to explore Thailand

    image
    Krabi2 hours ago

    New Krabi Airport terminal scheduled to open in November

    Thailand2 hours ago

    Risk of dengue fever is higher in rainy season, warns Thai doctor

    World3 hours ago

    Black box data on crashed China Eastern 737 suggests possible “intentional nosedive”

    image
    Join the conversation on the Thaiger Talk forums today!
    Thailand3 hours ago

    Grandson makes wax model of deceased grandma “to make grandpa happy”

    Phuket3 hours ago

    UPDATE: Phuket’s Narong visits recovering German tourist in hospital

    Tourism4 hours ago

    Mixed fortunes for Thai Airways but nation’s flag carrier confident of financial take off

    Songkhla4 hours ago

    Songkhla woman charged with trafficking young girl

    Indonesia4 hours ago

    Outdoor mask mandate to be ditched in Indonesia as infections continue to fall

    World5 hours ago

    Pentagon reports increase in UFO numbers over last 20 years

    Tourism5 hours ago

    Thai officials visit Saudi Arabia for roadshow, push for more tourists

    Bangkok5 hours ago

    Flooding in Bangkok after 10 hours of torrential rain

    Tourism5 hours ago

    Thai aviation industry says international flights at only 20% of pre-pandemic level

    Thailand8 months ago

    Morning Top Stories Thailand | Police to end protests, Human Trafficking | September 14

    Thailand1 year ago

    Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

    Tourism1 year ago

    Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

    Phuket1 year ago

    Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

    Tourism1 year ago

    Phuket Thai food treats you need to try | VIDEO

    Thailand1 year ago

    Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

    Tourism1 year ago

    In search of Cat & Dog Cafés in Phuket Town | VIDEO

    Thailand1 year ago

    Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

    Thailand1 year ago

    Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

    Thailand1 year ago

    Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

    Thailand1 year ago

    Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

    Thailand1 year ago

    Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

    Thailand1 year ago

    Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

    Thailand1 year ago

    Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

    Thailand1 year ago

    Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11

    Trending