Thailand is contemplating an increase in its proposed foreign tourist entry fee, initially set at 300 baht, according to Tourism and Sports Minister Surasak Phancharoenworakul. The tourism tax, first suggested in 2020 but yet to be implemented, might rise above 300 baht due to inflation and escalating insurance costs aimed at expanding coverage in private hospitals. Authorities plan to allocate most of the revenue from these fees to tourist insurance, with the remainder dedicated to maintaining tourist attractions and enhancing infrastructure.
This announcement came shortly after the Thai government declared the termination of 60-day visa exemptions for travelers from 93 countries, a decision motivated by concerns over increasing illegal activities by foreigners. Minister Surasak emphasized that the ministry is finalizing the fee collection method to minimize any negative impact on traveler sentiment. Two potential collection methods are under consideration: adding the fee to airline tickets or utilizing the Thailand Digital Arrival Card (TDAC) system, required for all foreign visitors upon arrival.
However, airlines have expressed concerns about the feasibility of taxing only foreign passengers and excluding Thais, suggesting that the government may need to collect the tax from all passengers, with Thais eligible for refunds through an application. Alternatively, the tax could be imposed via the TDAC system. The final fee will largely depend on projected costs for accident insurance and treatment at private hospitals, as unpaid medical bills by foreign visitors reportedly cost Thai hospitals around 2.5 billion baht annually. The ministry is set to discuss appropriate insurance premiums with the Thai General Insurance Association in the next phase.
Thienprasit Chaiyapatranun, president of the Thai Hotels Association, has called for clarity on which incidents the insurance fund will cover. There is also a need to determine the portion of fees earmarked for major infrastructure projects. Authorities need to assess which types of incidents involving foreign tourists burden hospitals and whether the policy should cover events like floods, train construction accidents, or motorcycle crashes involving unlicensed riders.
The authorities are also ironing out the timeline for the visa exemption changes, reverting to 30-day and 15-day allowances and visa-on-arrival arrangements akin to those planned for 2024. Minister Surasak stated that the Ministry of Foreign Affairs should coordinate with foreign ministries worldwide on this policy shift. Adjustments to the visa scheme for selected countries, like offering a 15-day visa exemption for Indian tourists, are under consideration as India remains a top-five source market for Thailand. Despite these changes, the ministry believes the average nine-day stay of most tourists will mean minimal impact on arrivals, even as they update their strategy for 2026 amid geopolitical tensions, such as the prolonged US-Iran conflict, which could affect tourist numbers.