Tourism tax to start with air travel

Collection of the 300-baht travel tax may start with air passengers in the first phase, with the system needing at least six months before starting, according to the Tourism and Sports Ministry.
The ministry is revising details of the programme and will submit it for cabinet approval in January, said Tourism and Sports Minister Sorawong Thienthong.
Even though this project was approved by the previous government led by Prayut Chan-o-cha in February 2023, it now requires a consensus from the new cabinet as the administration has changed since the general election.
Mr Sorawong said it is possible collection will start with air passengers, though the tax scheme will need six months after cabinet approval to prepare the system before getting started.
Once the system settles, the second phase covering overland travel will follow, he said.
According to the ministry, air travellers account for 70% of foreign arrivals to Thailand.
The transaction system has been prepared and is powered by Krungthai Bank.
Tourists can pay via a website or an app that is being developed for the next phase, said Mr Sorawong.
Payment would be similar to South Korea’s K-ETA registration system, which requires foreign travellers to register and make an online payment before entering the country.
Once the government approves this project, the ministry will start a procurement process to recruit software developers and insurance companies to offer insurance policies for foreign tourists, he said.
The insurance premium for tourists is capped at no more than 60 baht per person, out of 300 baht collected.
The duration of protection is 30 days, as 87% of tourists have an average length of stay of no more than a month, with compensation remaining the same as previous Thai tourist policies, at 1 million baht in the event of death from an accident, and 500,000 baht in case of injury.
Mr Sorawong said the ministry might propose adjustment of the fee collection to 300 baht for all ports of entry to prevent accusations of discrimination, as the previous government set the land and sea arrival rate at only 150 baht.
According to the ministry’s study, people who frequently cross borders for trade purposes will not be affected as they can use a border pass to be exempt from the levy.