Thailand's Tourism and Sports Ministry has announced plans to implement a travel tax of 300 baht (approximately US$8.88) for air passengers starting in mid-2025. This new tax, referred to as a “travelling tax”, is set to be submitted to the cabinet for approval in January 2025, with implementation anticipated six months later.
The tax will primarily affect foreign air travellers, who account for around 70% of all arrivals in the country. The funds collected will be used to purchase insurance for foreign visitors, while the remainder will contribute to a tourism development fund aimed at enhancing tourist facilities, including accessibility improvements and public restroom upgrades.
The collection process will follow a model similar to South Korea's K-ETA system, requiring travellers to complete online registration and payment prior to their arrival in Thailand.
Thailand is projecting a significant increase in foreign tourist arrivals, expecting to reach 35.99 million by the end of this year, a rise of 28% from the previous year. Tourism revenue is forecasted to hit 1.8 trillion baht, reflecting a 32% increase year-on-year. In 2019, before the Covid-19 pandemic, Thailand welcomed nearly 40 million foreign visitors, showcasing the tourism sector's importance to the nation's economy.
While the tax will initially apply to air travellers, the government may consider extending it to those arriving by land or sea in the future. Notably, cross-border merchants will be exempt from this fee, provided they can present a valid border pass.