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Thailand Will Revive 300-Baht Tourism Tax To Boost Revenue

The newly appointed tourism minister plans to implement a 300-baht tourism tax that had been put on hold by the previous administration under Prime Minister Srettha Thavisin, aiming to generate at least 3 trillion baht in tourism revenue this year.

“I believe collecting the tourism fee benefits the tourism industry as the revenue will be used to develop infrastructure and attractions, as well as to ensure tourist safety,” stated Tourism Minister Sorawong Thienthong, who began his term on Monday.

Originally sanctioned by the cabinet in 2022, the tourism fee has yet to be officially enacted through publication in the Royal Gazette.

Air travelers to the country must pay a fee of 300 baht, while those entering via sea or land are charged 150 baht.

Minister Sorawong indicated that further time is needed to assess the system’s readiness, delaying any decision on when to start the fee collection, possibly within the final quarter.

The ministry is exploring the details and aims to finalize the collection process without negatively impacting tourism sentiment.

Mr. Sorawong, also the secretary-general of the Pheu Thai Party, is the third individual to serve as tourism minister under the current Pheu Thai-led administration.

He advocates for the continuation of the Ignite Tourism Thailand initiative introduced by Mr. Srettha, which includes developing entertainment zones, establishing an aviation hub, and promoting second-tier cities.

“As the government has pledged to support new man-made attractions and boost second-tier cities, we are encouraging the private sector to invest more by offering incentives, such as tax breaks,” said Mr. Sorawong.

The ministry is revisiting successful domestic tourism stimulus programs from the pandemic period, such as the We Travel Together co-payment initiative, which supported hotel rooms and airfares and benefited local economies directly.

Anticipating the upcoming high season, the minister expects events like marathons, Loy Krathong, and the New Year countdown to significantly boost revenue to the targeted 3 trillion baht from both domestic and international sources.

Despite previous long-term goals set by the government to garner 3 trillion baht from international markets within four years, he confirms his dedication to achieving this target under his leadership.

With the government considering hosting a Formula One motor racing event, possibly at a new circuit, Mr. Sorawong supports the idea but suggests a street circuit on Ratchadamnoen Road to better showcase the country’s unique aspects and benefit the economy.

He highlighted the ongoing issue with price-dumping tours, noting that while the number of illegal operators might not have increased, the economic losses they cause are likely more severe. Authorities have been directed to clamp down on these illicit activities.

On Wednesday, the minister is scheduled to meet with 20 private tourism stakeholders, including the Association of Thai Travel Agents and the Tourism Council of Thailand, to discuss strategic policies.