Thailand, a global hub for more than 30 million tourists, is getting ready to introduce a controversial 'tourism tax' by mid-2025, Wise Traveller has learned. Here we look at what it means for guests to The Land of Smiles.
A 300 Baht (USD $9) charge is set to be charged on air passengers first by mid-2025 before being rolled out to travellers visiting the country by land and sea.
While the finer details of the project are still being worked out and the proposal still requires Cabinet approval, Tourism and Sports Minister, Sarawong Thienthong confirmed: "We are working out the details and will submit for approval in January next year. It will start with air passengers, the first phase which will be six months to take effect."
The project was first approved by the previous Prayut Chan-o-cha-led government in February 2023. However, due to a change in the administration since Thailand's general election, a new consensus from the cabinet is required.
Mr Thienthong envisioned the system would take advance online payments. However, it is likely that the system will require around six months to bed in before officially starting, with the second phase covering overland travel.
How will travellers pay
It is understood that the transaction system has been prepared and will be powered by Krungthai Bank.
Mr Thienthong, as reported by the Bangkok Post, said tourists would be able to pay via a website or an app that is being developed for the next phase.
Payment would be similar to South Korea's K-ETA registration system, which requires foreign travellers to register and make an online payment before entering the country.
He said that once approved, the ministry will begin a procurement process to recruit software developers and insurance companies to offer insurance policies for foreign tourists.
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, with compensation remaining 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.
He added that the ministry might propose adjusting the fee collection to 300 baht for all ports of entry to prevent accusations of discrimination, as the previous government set the land and sea arrival rate at only 150 baht.
About 70% of foreign arrivals arrive in Thailand by air. Thailand saw 40 million tourists in 2019, but the effects of Covid shrunk that to 11 million by 2022. 2024 is expected to show a healthy bounce back to about 36 million foreign travellers.
The new tourist tax will be used by the Thai government to raise funds for upgrading tourist sites and provide compensation for injuries and fatalities among foreign visitors.
Andy Probert is an independent journalist and PR writer. He writes about travel, aviation, new tech and business. His work has appeared on the BBC, in The Daily Telegraph, Hurriyet Daily News and other newspapers worldwide.
