Thailand to reinstate compulsory fee for foreign visitors
The per-person tax could cover pandemic insurance once inbound flights and tourism resumes in the country
While the precise details have yet to be confirmed, Phiphat Ratchakitprakarn, the country’s Tourism and Sports Minister, explained that the 300-baht (US$9.36) fee could be added to the cost of air tickets as a supplement, and travellers arriving by land or sea could pay at the borders.
The scheme, which was initiated last year, but got delayed due to the Covid-19 pandemic, is part of the 20-year national strategic plan that requires government agencies to have recurring income to sustain and stabilise the national economy.
Phiphat commented: "The Tourism Authority of Thailand's (TAT) new target is 16 million arrivals this year, but I'm not optimistic we can reach that goal as international tourists will not come back before the fourth quarter. Compared with the last quarter of 2019, when we had 11 to 12 million arrivals, the new goal is too high amid these circumstances.”
Currently, Naresuan University is conducting a feasibility study on how reasonable a 300-baht tax burden is for visitors. Once finished, this will be submitted to the cabinet for approval.
ITIJ notes that the new fee may even subsidise healthcare costs associated with the pandemic later this year. As many travel insurers do not include pandemic cover in their policies, and many will likely instate Covid-19 exclusions, the mandatory fee could bring in much-needed revenue for the country’s healthcare system. Indeed, based on TAT’s new target, it could mean an extra $148,800,000 for the country this year.
Weighing in on the subject, Hong Kong tourism-sector lawmaker Yiu Si-wing said that Hongkongers' desire to visit Thailand, which is one of the country’s most popular tourist destinations in Southeast Asia, would likely not be affected by the new fee. "The levy amount is not big at all," he said. "After all, flight tickets to Thailand and consumption in the country are very reasonable and suits Hong Kong people's affordability. It would still be a good option for group tours and individual travellers."
Indeed, Phiphat believes that the extra protection that this new fee would offer to travellers would be essential to repairing travellers’ confidence in tourism going forward: "The pandemic has had a severe impact on tourism confidence, and the tourism fund should set aside a budget for state agencies to carry on when looking after tourists affected by the pandemic.”
Commenting on the issue, TAT Governor Yuthasak Supasorn added: "As long as Thailand has a clear plan on how to use the fund effectively and benefit international tourists, it should not create any obstacles.”