Thailand eyes US$30 departure tax for tourists in revenue push

Thailand is contemplating a new outbound tourist tax aimed at generating additional revenue for the struggling economy. The government is mulling a proposal to charge around ฿1,000 (US$30) on travelers leaving the country, while also planning to impose a ฿450 fee on foreign visitors arriving by air.

The Thai Travel Agents Association has cautioned that the proposed outbound tax could lead to a significant drop in passenger numbers, potentially causing airlines to cut flight frequencies and adversely affecting inbound tourism. This outcome would contradict the government's goal of transforming Thailand into a regional aviation hub.

Despite welcoming approximately 24 million foreign tourists between October 1-10, the country's tourist arrivals remain 4% below the previous year and well below the pre-pandemic figure of nearly 40 million in 2019.

The tourism authority projects around 33 million visitors this year, a decline marking the first consecutive annual decline since at least 1995. Finance ministry permanent secretary Lavaron Sangsnit stated that the proposed departure tax would be a revival of a levy last set at ฿500 two decades ago, with the current rate around ฿1,000. This additional cost could be incorporated into airline tickets, rather than being collected separately at departure.

Lavoron argued that affluent travelers can better afford the extra charge, and the proceeds could be used to promote domestic tourism, fund travel insurance, or provide emergency medical coverage. A recent online public consultation saw more than 80% of respondents supporting the proposal.