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

Thailand is exploring a potential outbound tax of approximately ฿1,000 (US$30) for travelers departing the country, as part of efforts to generate more revenue. The proposal from Prime Minister Anutin Charnvirakul's government stems from the tourism sector's slow recovery following the COVID-19 pandemic. Additionally, the government plans to charge foreign visitors arriving by air a fee of ฿450.

These measures come as Thailand seeks to boost its fiscal space, which has been strained by prolonged budget deficits of about 3%-4% of gross domestic product. Tourism is a vital industry for the nation, providing jobs, spending, and foreign currency earnings. However, the Thai Travel Agents Association has expressed concerns that an outbound tax could significantly reduce passenger numbers, leading airlines to cut flight frequencies and potentially harm inbound tourism.

The Tourism Authority of Thailand anticipates around 33 million visitors this year, a decrease from 24 million recorded through October, which would mark the first consecutive annual decline since at least 1995. The proposed departure tax would be a revival of a levy last set at ฿500 two decades ago, currently allowed to reach up to ฿5,000.

The government argues that those who can afford to travel are more equipped to bear the additional cost, with the funds potentially used to promote domestic tourism and provide travel insurance or emergency medical coverage. More than 80% of respondents in a recent online public consultation agreed with the proposed tax.