Thailand’s new tourism minister, Sorawong Thienthong, is reigniting plans to impose a tourism tax, a move that could generate significant revenue for the country’s tourism industry. The proposed tax, set at 300 baht (approximately ₹750) per visitor, was initially put on hold by the previous administration but is now back on the table with a renewed focus on boosting tourism income to a staggering 3 trillion baht this year.
According to a Bangkok Post report, the minister believes the tax will benefit the tourism sector by providing funds for infrastructure development, attraction enhancements, and tourist safety measures. While the tax was approved by the cabinet in 2022, it has yet to be implemented due to a lack of official Royal Gazette endorsement and initial opposition from the private sector. Sorawong has stated that the ministry requires additional time to assess the system before moving forward, with no confirmation yet on whether the collection will begin in the final quarter of the year.
The proposed fee structure remains unchanged from its initial proposal five years ago, with air travelers facing a 300 baht charge and land/sea visitors paying 150 baht. This tax strategy comes at a time when Thailand’s tourism sector is experiencing a strong rebound, with India, China, and Malaysia being key contributors to the country’s tourism revenue, which reached nearly $22.42 billion in 2023.
Who Gets a Pass?
Not all tourists will be subject to the tax. The following categories will be exempt from the fees:
* Children under two years of age
* Transit passengers
* Diplomatic passport holders
* Individuals with work permits
Global Trend of Tourist Taxes
Thailand isn’t alone in exploring the potential of a tourism tax. Many cities around the world, including Edinburgh, Barcelona, Paris, and Venice, have implemented similar charges. The tax rate typically varies based on location and accommodation type. For example, in Barcelona, tourists face both a regional tax and a city surcharge, adding up to several euros per night depending on their accommodation choice. Paris also employs a tiered system based on accommodation type and star rating, with luxury stays attracting higher taxes.
Austria follows a percentage-based approach, charging approximately 3.02% of the hotel bill per person. Belgium implements a similar system, with tax rates varying based on hotel size, rating, and city location. Bhutan stands out with a $100 daily fee intended to promote sustainable tourism and protect its natural heritage by limiting visitor numbers.
