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Tourism Tax to Begin with Air Travel

Tourism Tax to Begin with Air Travel

The collection of a 300-baht travel tax is set to begin with air passengers in the initial phase, as confirmed by the Ministry of Tourism and Sports, which states that a minimum preparation period of six months will be necessary before implementation.

Tourism and Sports Minister Sorawong Thienthong has indicated that the ministry is currently revising the program details and plans to submit the proposal for cabinet approval in January. Although this initiative was approved by the previous administration under Prayut Chan-o-cha in February 2023, the new government will need to reach a consensus on the matter due to recent electoral changes.

Mr. Sorawong suggested that the collection could start with airline travelers, accounting for 70% of foreign arrivals to Thailand. Once the cabinet gives the green light, there will be a six-month lead time to establish the necessary systems before rollout.

The next phase will include overland travel taxation following the initial implementation. The transaction system is already prepared, managed by Krungthai Bank. Tourists will be able to make payments through a dedicated website or a mobile app currently being developed, akin to South Korea’s K-ETA system, which requires foreign visitors to register and pay online prior to arrival.

Once the government approves this initiative, the ministry will begin a procurement process to hire software developers and insurance providers that will offer coverage for foreign tourists. The insurance premium will be capped at 60 baht per person out of the 300 baht tax collected. Coverage will last 30 days, which aligns with the typical stay of 87% of tourists in Thailand, with compensation set at 1 million baht for accidental death and 500,000 baht for injury.

Additionally, Mr. Sorawong mentioned the possibility of adjusting the 300 baht fee for all entry points to avoid claims of discrimination, as the previous government instituted a lower tax of 150 baht for land and sea arrivals. The ministry’s study shows that frequent cross-border traders will remain unaffected, as they can utilize a border pass to be exempt from the tax.

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