Photo Credit: Bangkok Post
Delays in Implementing Thailand’s Tourism Tax: An Overview
Although the cabinet approved the National Tourism Policy Committee’s proposal to collect a tourism fee from international visitors in February 2023, the scheme has yet to be put into practice.
The initiative has faced multiple delays primarily due to political decisions rather than challenges in execution.
Recently, the new Tourism and Sports Minister expressed interest in advancing the collection of the tax. However, it now appears unlikely that the tax will be enforced within the four-month window initially promised by the current government.
What is the Tourism Tax and How Does It Work?
The concept of a tourism tax in Thailand was introduced under Section 10/2 of the 2019 National Tourism Policy Act. Its purpose is to fund tourism development projects and provide insurance coverage for foreign visitors.
This approach is similar to other international examples, such as Japan’s ¥1,000 departure tax. Between 2017 and 2019, the Thai government allocated between 300 million and 400 million baht annually to cover unpaid medical expenses for foreigners treated at public hospitals, according to previous administrations.
However, the implementation of this levy was disrupted by the COVID-19 pandemic, which saw international tourist arrivals plummet from 6.6 million in 2020 to just over half a million in 2021, before rebounding to 11 million in 2022. These conditions made launching the tax less feasible.
On February 14, 2023, the government led by Prayut Chan-o-cha and Tourism and Sports Minister Phiphat Ratchakitprakarn approved in principle a draft for the tax. The proposed rate was set at 300 baht for air arrivals and 150 baht for land or sea arrivals, applicable only to overnight visitors.
The cabinet assigned the Immigration Bureau the task of revising relevant regulations under the Immigration Act, requiring proof of payment at entry points. The Thai Tourism Promotion Fund Committee was tasked with overseeing the project, supported by five subcommittees focusing on fund screening, project evaluation, regulation updates, fee collection, and insurance.
Despite being structurally prepared, the scheme was delayed due to inconsistent political support amid shifts in government leadership.
Reasons Behind the Delays
Over the past three years, the tourist tax has faced considerable setbacks. Even when officials showed enthusiasm, actions were delayed or halted, often awaiting the next government administration.
Within the private sector, opinions remain divided. The Tourism Council of Thailand (TCT) strongly supports the initiative, predicting it could generate over 11 billion baht annually if foreign tourist arrivals reach 39 million, similar to pre-pandemic levels in 2019.
In contrast, the Thai Hotels Association (THA) urged caution, raising concerns about potential negative perceptions of the tax, especially since the tourism industry has not yet fully recovered.
The tax was initially scheduled to be introduced on June 1, 2023. However, in April, Minister Phiphat announced a postponement to September 1 due to difficulties in implementing the collection method, specifically because airlines’ booking systems could not differentiate foreign travelers from locals to include the tax.
Airlines noted that their systems generally combine charges like the passenger service fee with the total fare for all passengers, regardless of nationality, making selective applications challenging.
As the government transition concluded in August 2023, Minister Phiphat stated the tax would be postponed indefinitely, with a shift in priorities to boost tourism with eased entry policies, such as visa exemptions for 53 countries.
The subsequent administration under Srettha Thavisin did not prioritize the tax, citing the need to encourage foreign visitation instead. However, after Srettha’s removal in 2024, his successor Paetongtarn Shinawatra allowed the Tourism and Sports Minister Sorawong Thienthong to revisit preparations for the tax.
In October 2024, Minister Sorawong indicated the tax was ready for the first phase of implementation for air passengers, though full rollout would take at least six months. Aiming for cabinet approval in January 2025, the plan was again postponed due to declining tourist numbers—particularly a 30% drop in Chinese arrivals—and uncertain demand.
Meanwhile, the government introduced the online TM6 immigration system in May to facilitate tax collection, aiming for full integration by the final quarter. Just before the government’s departure, the tax was postponed yet again in July, citing the unpredictable tourism market.
Although the new Tourism and Sports Minister Artthakorn Sirilatthayakorn does not oppose the tax, the limited term of the current administration—only four months—makes it unlikely to move forward, according to permanent secretary Natthriya Thaweevong.
What Tourists Should Know About the Tax
Ms. Natthriya explained that the tax structure remains unchanged. The 300-baht fee includes up to 60 baht for tourist insurance. Powered by Krungthai Bank, the system allows for online pre-payment, similar to South Korea