Thailand’s Tourism and Sports Minister, Surasak Phancharoenworakul, has announced that the country is considering raising its proposed foreign tourist entry fee beyond the initially planned 300 baht. This fee, which was first discussed in 2020 but has yet to be implemented, may see an increase due to inflation and the rising costs of insurance, aimed at extending coverage within private hospitals. The majority of the funds collected from this fee are intended to support tourist insurance, with the remainder allocated for the upkeep of tourist sites and infrastructure improvements.
The discussion around adjusting the tourism fee comes in the wake of the government’s decision to eliminate 60-day visa exemptions for travelers from 93 countries. This move, which had been in the works for some time, seeks to address concerns over the rise in illegal activities attributed to foreigners. Minister Surasak emphasized that the collection method for the fee is still being finalized to ensure it does not negatively impact traveler sentiment. Two potential methods are under consideration: integrating the fee into airline ticket prices or utilizing the Thailand Digital Arrival Card (TDAC) system, mandatory for all foreign arrivals.
Airlines have raised concerns about the potential discrimination of taxing only foreign passengers, suggesting that the fee might need to be applied universally, with Thai nationals eligible for refunds via an application. Alternatively, the TDAC system could be employed to levy the fee directly on foreign visitors. The eventual fee amount will largely depend on projected insurance costs and the burden of unpaid medical expenses, which reportedly cost Thai hospitals approximately 2.5 billion baht annually. Discussions with the Thai General Insurance Association are planned to finalize an appropriate insurance premium.
Thienprasit Chaiyapatranun, president of the Thai Hotels Association, has called for clearer definitions regarding the types of incidents the insurance fund would cover, as well as the percentage of funds allocated to major infrastructure projects. The types of incidents placing strains on hospital resources, such as floods, accidents during construction, or unlicensed motorcycle crashes, need careful evaluation in crafting the policy. Meanwhile, authorities are determining the timeline for the visa exemption changes, which involve reverting to previous 30-day and 15-day allowances and visa-on-arrival setups, akin to those expected to be reinstated in 2024.
The Ministry of Foreign Affairs, responsible for national visa policy, is tasked with coordinating these changes with foreign governments. The Ministry of Tourism and Sports, on the other hand, intends to propose adjustments for selected countries, highlighting India as a significant market that may benefit from a 15-day visa exemption. Additionally, the Ministry has directed the Tourism Authority of Thailand to reconsider its strategies for 2026, especially in light of potential impacts from the ongoing US-Iran conflict, which could hinder the achievement of the 33 million foreign arrivals target. Despite the visa changes, Minister Surasak believes the average tourist’s stay of nine days should buffer any potential decline in visitor numbers.