Thailand weighs new tourism levies; industry raises competition concerns
The Thai Revenue Department considers an outbound levy of up to 5,000 baht, alongside a 450 baht foreign tourist tax planned for early 2027.
Proposed New Tourism Levies
Thailand's Revenue Department is currently holding a public consultation on a proposed outbound levy. This tax would start at 1,000 baht and could increase to 5,000 baht. It would apply in addition to the existing 1,210 baht passenger service charge already included in international airfares.
Separately, the Ministry of Tourism and Sports has committed to introducing a 450 baht tourist tax specifically for foreign visitors. Implementation for this foreign tourist tax is targeted for the first quarter of 2027.
Industry Concerns Over Costs
Chananon Khonchote, President of the Restaurant Association, stated that the proposed outbound tax could influence travel decisions for budget-conscious foreign visitors. He noted the departure tax primarily targets air travellers, suggesting it might not significantly affect Malaysian tourists, many of whom enter Thailand by land.
Wanithan Kulmongkol, President of the Thai Restaurant Association, cautioned that Thailand faces strong regional competition from other Asian destinations offering competitively priced travel options. She suggested halving the proposed 1,000 baht outbound tax to lessen its effect on foreign arrivals.
Shifting Travel Patterns
Mr Khonchote believes Thai travellers will factor the outbound tax into their decisions about international travel. He also anticipates the new scheme could boost domestic tourism among Thais, benefiting local businesses. He observed that Thai travellers spent less than expected in the first half of October, likely due to recent natural disasters making them more cautious.
According to the Ministry of Sports and Tourism's Economics Division, Thailand recorded 23.9 million foreign arrivals from 1 January to 10 October, a 4.4% year-on-year decrease.
Funding Domestic Initiatives
Ms Kulmongkol suggested the Ministry of Sports and Tourism manage revenue generated from both the outbound and foreign tourist taxes. This funding could independently support domestic tourism development and promotional campaigns. Despite concerns about the outbound tax, she predicted it would likely not deter Thai citizens who wish to travel abroad.
However, she found it too early to assess the outbound tax's overall impact on foreign arrivals, given the dynamic regional travel market.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
Comments.
Comments are moderated. We remove what is unlawful, abusive or off-topic, and and you remain responsible for what you post.
Reader comments open soon. Until then, corrections and responses go to our newsroom, and we publish what we get wrong on Corrections.