Traveling to Thailand may cost you thousands more. Thailand plans to charge entry fees for foreign tourists and impose taxes on departure.

Thailand's tourism industry has not yet returned to its pre-epidemic prosperity. In order to expand financial resources, the government is considering imposing a departure tax of approximately 1,000 baht (approximately NT$958) on Thai and foreign outbound tourists. It also plans to charge a fee of approximately 450 baht (approximately NT$431) from foreign tourists entering the country by air.

Bloomberg reported on the 13th that Prime Minister Anutin Charnvirakul’s government is considering the above measures. Lavaron Sangsnit, Permanent Undersecretary of the Ministry of Finance, said that Thailand has levied an departure tax in the past. The tax amounted to 500 baht about 20 years ago, and it is now considering reinstating it. The current law allows the departure tax to be capped at 5,000 baht. He said that the government is currently considering about 1,000 baht.

Lavallon pointed out that the departure tax may be directly integrated into the ticket price, rather than being charged separately when leaving the country. He believes that people who can afford to go abroad are more able to afford this income, which can be used to promote domestic tourism, provide travel insurance or emergency medical protection.

Thailand suffers from weak domestic demand and slow economic growth. In recent years, the fiscal deficit has accounted for about 3% to 4% of its gross domestic product (GDP), which has reduced its fiscal space. For this reason, the government is seeking to increase fiscal revenue. However, tourism is an important source of employment, consumption and foreign exchange in Thailand. The Thai Travel Agents Association (TTAA) warned that the departure tax may significantly reduce the number of passengers and force airlines to reduce flights, ultimately hurting inbound tourism. This result will run counter to the government's goal of promoting Thailand to become a regional aviation hub.

As of October 10 this year, 24 million foreign tourists entered Thailand, a 4% decrease from the previous year and far lower than the nearly 40 million people in 2019 before the new coronavirus epidemic. The Tourism Authority of Thailand estimates that there will be about 33 million inbound tourists this year; if the actual number is lower than last year's 32.97 million, it will be the first time since at least 1995 that there have been two consecutive years of decline during non-epidemic periods.

As for the plan to charge 450 baht to foreign tourists entering the country by air, Tourism and Sports Minister Surasak Phancharoenworakul said that in a recent online public consultation, more than 80% of the respondents supported the fee plan.