Thailand To Impose Tourism Tax On Air Travel

A recent announcement by Thailand’s Ministry of Tourism and Sports states that it may begin collecting a 300-baht (RM39) travel tax next year, starting with air passengers.

According to the Bangkok Post, the ministry said that it is revising details of the programme.The ministry will submit it for cabinet approval in January.

Tourism tax will start with air passengers

This project was approved by the previous government led by Prayut Chan-o-cha in February 2023. Despite this, it will now require a consensus from the new cabinet due to a change in administration since the general election. 

The tax scheme is stated to require at least six months after cabinet approval to prepare the system before getting started. Once the system for air passengers is in place, a second phase will begin that will cover overland travel as well.

According to the ministry, air travellers account for approximately 70% of foreign arrivals to Thailand. It also appears that the transaction system for the travel tax will be prepared and powered by Krungthai Bank. Tourists can pay via a website or an app that is being developed for the next phase, said Sorawong Thienthong, Thailand’s minister of tourism and sports.

Travellers to register and pay online before entering country

Payment would be similar to South Korea’s K-ETA registration system. Foreign travellers will have to register and make an online payment before entering the country. Once the government approves the project, a round of recruitment will begin to gather software developers and insurance companies to offer insurance policies for foreign tourists. 

According to Sorawong, the insurance premium for tourists is capped at no more than 60 baht per person, out of 300 baht collected. The duration of protection is 30 days, as 87% of tourists have an average length of stay of no more than a month. Compensations  will remain the same as previous Thai tourist policies, at 1 million baht in the event of death from an accident, and 500,000 baht in case of injury.

It was also mentioned that the ministry may propose adjustments for the fee collection to 300 baht for all ports of entry. This is to prevent accusations of discrimination. Previously , the government set the land and sea arrival rate at only 150 baht. The ministry had also mentioned that those who frequently crosses the border for trade purposes will be exempted from th levy with the use of a border pass.