Thailand Delays Tourist Tax to 2026

Thailand to Introduce Tourist Entry Tax to Boost Tourism Infrastructure

The Tourist minister of Thailand has accounted that a long proposed tax on visitors will soon be implemented, with the aim of strengthening the country's tourism infrastructure and ensuring visitor insurance coverage.

What's Happening

Thailands government are yet again in talks on changing entry criteria for tourists, the proposed change will likely see visitors pay 300BHT each arriving by air whilst those entering by land or sea may face 150BHT fee.

The idea was first approved by the Thai cabinet in February 2023 yet previous ministers delayed the roll out, now the current minister is pushing to implement the change.

Why it Matters

Thailand projected around 33 million foreign visitor arrivals for 2025, a downward revision from earlier expectations made earlier in the year. Reading Reuters Thailand has made a 7.04% decline year/y, this is significantly below the pre-pandemic total of nearly 40 million.

The Downside

Whilst the idea behind the scheme has good incentives, travellers won't see any immediate benefits when the fee is introduced. Coupled with the potential rollback to 30 days visa-free stay, this could be detrimental to the already collapsing numbers. If you want to read more about the rollback, check out the blog Thailand: 60-Day Visa-Free Stay, Under Review.

The projects this tax aims to fund, from better public facilities to safety upgrades, will most likely take months, if not years to materialise. Another frustration is the lack of clarity on transparency and use of funds, previously Thailand proposed similar schemes which were later delayed or cancelled due to poor coordination between ministries and airlines. Take the most recent free domestic flights within Thailand for example, this was due to be implemented and usable to tourists in November, yet it's still not been passed by the Thai cabinet. If you'd like to read more on this check out my other blog Thailands Free Flight Promise: Crash Landed?

I feel Thailand are on a slippery slope with tourism, if they're not careful they could lose out to neighbouring countries like Vietnam with its welcoming attitude and 45 day visa-free stay for most countries. Thailand need to tread carefully, particularly as talks for the ASEAN multi schengen-style visa seems to be making good progress, leaving Thailand potentially, unstuck.

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