Thailand is seeking to generate more revenue from travelers and is considering imposing fees on foreign travelers entering and leaving the country. However, this move would test a tourism sector that has yet to fully recover from the pandemic.
According to Bloomberg, the Thai government is considering a departure tax of approximately 1,000 baht (about US$30) for both Thai citizens and foreign travelers leaving the country, while separately planning a 450-baht (about US$14.50) fee for foreign travelers arriving by air.
These measures highlight the economic dilemma Thailand faces at a time of sluggish domestic demand and weak economic growth.
Years of budget deficits—amounting to roughly 3% to 4% of GDP—have eroded Thailand’s fiscal space, creating an urgent need to raise more revenue. Yet, the tourism industry remains a vital pillar for employment, consumer spending, and foreign exchange earnings.
The Association of Thai Travel Agents has warned that imposing a departure tax could significantly reduce passenger numbers, prompting airlines to cut flight frequencies and ultimately harming inbound tourism. The association also noted that the move runs counter to the government’s ambition of establishing Thailand as a regional aviation hub.
As of October 10, Thailand had welcomed approximately 24 million foreign tourists—a 4% drop compared to the same period last year and still far below the record of nearly 40 million arrivals set in 2019, prior to the pandemic. The Tourism Authority of Thailand projects a total of 33 million tourist arrivals for the year. If the final figure falls below last year’s 32.97 million, it would mark the first time since 1995—excluding the pandemic years—that arrivals have declined for two consecutive years.
Lavaron Sangsnit, Permanent Secretary of the Ministry of Finance, stated that the proposed departure tax would revive a levy system originally set at 500 baht about two decades ago. Although current laws allow the government to charge up to 5,000 baht, Lavaron noted that the rate currently under consideration is around 1,000 baht. Lavallon stated that the tax might be incorporated directly into the price of airline tickets rather than being collected separately upon departure. He believes that those who can afford overseas travel are better positioned to bear this additional cost, and that the revenue generated could be used to promote domestic tourism and fund travel insurance or emergency medical coverage.