Thailand is set to introduce a travel tax for visitors starting mid-2025. This move aims to generate revenue for tourism development.
Historical context
The Tourism and Sports Ministry representative Sorawong Thienthong, announced the new tax. The goal is to improve facilities and services for tourists. Thailand’s tourism industry is a vital part of its economy.
Previously, Thailand has relied heavily on tourist spending to boost its economy. This tax aimed to provide additional funding for tourism infrastructure.
Initially, in February 2023, the previous Thai government approved the initiative, the name of which was at first “landing fee.” Following the general election, authorities have since changed this name to “travelling tax.”
About the new travel tax
The travel tax includes a 300-baht fee for air travelers and a 150-baht fee for those arriving by land or sea. Correspondingly, Thai authorities will implement the first phase of the project on travelers by air. Once operational, it will also eventually apply to travelers by land and sea.
Sorawong has also specified that the Thai government would take around six months to set up the travel tax system. This applies after the Cabinet approves of it.
This tax will apply to approximately 87% of foreign arrivals. Moreover, the funds generated will be used to buy insurance for foreign visitors and support tourism development.
Implementation plan
Thai authorities will implement the tax in mid-2025, starting with air passengers. Travelers will make payments via a website or app via Krungthai Bank’s system. Similar to the K-ETA registration system, foreign visitors need to register and pay for the tax online before entering Thailand.
Additionally, the Ministry of Tourism will hire software developers and insurance companies to provide insurance policies for inbound travelers.
The travel tax of 300 baht already includes the insurance premium of 60 baht per traveler. The insurance coverage includes basic medical expenses up to 1 million baht for death and 500,000 baht for injuries. This system ensures that tourists are covered during their stay in Thailand for up to 30 days.
Sorawong Thienthong emphasized the importance of this new tax. He stated, “We are working out the details and will submit for approval in January next year.” The ministry is also considering a uniform fee for all ports of entry to avoid discrimination.
Impact on Thai tourism
The travel tax aims to bring several benefits to Thailand’s tourism industry. With better facilities and infrastructure, the Thai government will be able to enhance the overall visitor experience. However, there are concerns about the potential impact on tourist numbers and competitiveness.
In particular, the Ministry of Tourism has expressed concern over how the system may potentially promote discrimination among travelers. The previous government had imposed different rates for land and sea arrivals, with a cap of 150 baht. Currently, the ministry is exploring a uniform tax rate of 300 baht for all ports of entry.
The ministry is confident that the benefits will outweigh any potential drawbacks.
What’s ahead
The travel tax is part of Thailand’s broader efforts to enhance its tourism industry. The government is committed to attracting more visitors and boosting economic growth. Additional projects are underway to further develop tourism infrastructure.
The implementation of the travel tax represents a significant step towards improving tourism in Thailand. Visitors can look forward to better services and facilities.
Photo: Freepik/jcomp
