Thailand is planning to introduce a 300-baht travel tax for air passengers, but the system will take at least six months to be fully implemented, according to the Tourism and Sports Ministry.
The Ministry is updating the program details and plans to seek cabinet approval in January, Tourism and Sports Minister Sorawong Thienthong stated.
Although the previous government under Prayut Chan-o-cha approved this project in February 2023, it now requires agreement from the new cabinet following changes after the general election.
Mr. Sorawong mentioned that the tax might initially be collected from air passengers, requiring six months to set up the system after obtaining cabinet consent.
He added that once the initial system is operational, a second phase involving overland travelers will commence.
The ministry notes that air travelers represent 70% of all foreign visitors to Thailand. Krungthai Bank is prepared to manage the transaction system.
Mr. Sorawong also revealed that tourists will have the option to make payments through a website or an app, which is currently in development.
This payment process will resemble South Korea’s K-ETA registration system, where foreign visitors must register and pay online before their arrival.
Following governmental approval, the ministry will initiate a procurement phase to hire software developers and insurance providers to furnish foreign tourists with insurance options.
The maximum insurance premium per tourist will be limited to 60 baht out of the total 300 baht collected.
The insurance coverage lasts for 30 days, aligning with the fact that 87% of tourists stay no longer than one month, with the same compensation terms as prior Thai tourist policies: 1 million baht for accidental death and 500,000 baht for injuries.
Mr. Sorawong discussed the possibility of proposing a uniform fee of 300 baht for all entry points to prevent accusations of discrimination, contrasting with the previous rates of 150 baht for land and sea entries set by the former government.
The ministry’s analysis indicates that regular cross-border traders will not be impacted as they can obtain a border pass to avoid the tax.
