Thailand to Introduce Tourist Tax

Thailand’s Minister of Tourism and Sports, Sorawong Thienthong, announced that by the end of 2025, the country’s tax regulations for foreign visitors will change. If the new scheme is approved and published in the Royal Gazette, tourists from other countries will be required to pay a 300-baht (approximately $9 USD) fee, according to Nation Thailand.

The collection of this tax will differ based on the mode of travel:
- Air travelers will be charged the tax each time they enter Thailand.

Those entering by land or sea will only pay the fee on their first visit within a 30- to 60-day period, allowing multiple entries without additional charges.
To streamline tax collection, Thailand is also developing a system that links payments to the Thailand Digital Arrival Card (TDAC), which is set to be introduced on May 1, 2025.

Minister Sorawong Thienthong believes that this tourist tax will not deter foreign visitors due to its relatively low amount. Several embassies have already approved the measure, as it will provide travelers with insurance coverage. He also emphasized that the tourism taxation system will be standardized to make the process smoother for visitors.

Tourist Tax: A Delayed Initiative

The decision to introduce a tourist tax was initially made in early 2023. At that time, Bloomberg reported that the fee was expected to be implemented by June 2023, with different rates:
- 300 baht for air travelers
- 150 baht for land and sea arrivals

The Thai government aimed to collect approximately 3.9 billion baht from this tax, with funds allocated for:
- Health insurance for tourists
- Accident assistance
- Development of tourist attractions

However, local tourism industry representatives criticized the measure, arguing that Thailand had only recently lifted COVID-19 restrictions, and introducing a new tax would be excessive. At the time, Thailand was experiencing a strong recovery in international arrivals, with projections suggesting that the number of foreign tourists could triple from 11.2 million in 2022 to 30 million in 2023.

By spring 2023, the Thai government postponed the introduction of the fee, as reported by The Straits Times. In June 2024, Prime Minister Srettha Thavisin stated that he would not support the tax, citing opposition from the private sector. He argued that focusing on attracting more tourists would generate greater economic benefits than a short-term revenue boost from the fee.

According to The Phuket Express, by mid-2024, Thailand dropped in the World Economic Forum’s Travel & Tourism Development Index, ranking 47th out of 119 countries.

Thailand's Tourism Performance in 2024

As of December 8, 2024, Thailand had received 32.7 million foreign visitors, who spent around 1.5 trillion baht ($43 billion USD), according to Bangkok Post. However, the country failed to reach its tourism revenue targets, and the return of Chinese tourists to pre-pandemic levels remains uncertain.

The top nationalities among visitors were:
- China: 6.3 million
- Malaysia: 4.6 million
- India: 1.9 million
- South Korea: 1.7 million
- Russia: 1.5 million

Government spokesperson Jirayu Huangsap stated that tourism arrivals increased by 10% in the second half of 2024 due to stimulus programs and relaxed visa requirements.

According to the Thai Hotels Association (THA), hotel occupancy rates in Pattaya exceeded 80% during the New Year holidays, with 70-80% occupancy in Si Racha. Many tourists came from Russia, Germany, and the UK.

The THA president, Morakot Kuldirak, emphasized that:
- Extending visa-free policies
- Aggressive marketing in the Indian market could increase tourist numbers and raise hotel prices in Pattaya by 5-10% (or even up to 20% in some cases). There are also plans to develop halal tourism to attract more Muslim travelers.

Thailand’s Future Tourism Strategy

The Ministry of Tourism and Sports has launched the campaign "Amazing Thailand – Year of Tourism & Sports 2025", aiming to attract 40 million foreign visitors and generate 2.8 trillion baht ($81.7 billion USD).

In 2024, Thailand’s tourism revenue totaled 2.6 trillion baht ($75.8 billion USD), which was below the target of 3 trillion baht ($87.5 billion USD). Despite ranking among the top 14 countries in terms of international tourism revenue, Thailand faces competition from Japan and China, as well as global economic uncertainties.

To strengthen the industry, the Thai government plans to:
- Promote high-end tourism
- Enhance infrastructure
- Develop new travel routes
- Improve overall comfort for travelers
- Expand the inbound tourism market to Europe, North and South America

Although the tourist tax proposal has faced delays and opposition, Thailand is actively working on long-term strategies to maintain its status as a top global destination.