Travelling tax in Thailand will begin in the middle of 2025

[WORLD] Thailand is set to introduce a new "travelling tax" in mid-2025, a measure that has sparked significant debate and discussion. This tax, formerly known as the "landing fee," will initially apply to foreign arrivals by air, with plans to extend it to those arriving by land and sea. The initiative aims to enhance the country's tourism infrastructure and provide insurance coverage for visitors.

Background and Implementation

The travelling tax, officially named Kha Yeap Pan Din or "fee for stepping on Thai soil," was approved in principle by Thailand's cabinet in February 2023. The tax is set at 300 baht for air arrivals and 150 baht for those entering by land or sea. According to Tourism and Sports Minister Sorawong Thienthong, the tax will be submitted for final cabinet approval in early 2025, with implementation expected six months thereafter.

Purpose and Allocation of Funds

The primary goal of this tax is to generate funds for tourism development and provide insurance coverage for foreign visitors. A portion of the tax revenue will be allocated to purchasing insurance, which covers up to 60 baht from the 300 baht collected per person. This insurance provides a payout of up to one million baht in the event of death and a maximum of 500,000 baht for injuries. The coverage applies to stays in Thailand not exceeding 30 days, which accounts for approximately 87% of foreign arrivals.

The remaining funds will be directed towards improving tourist attractions and facilities, including enhancing accessibility for disabled visitors and upgrading public amenities like toilets. Minister Sorawong emphasized the importance of these improvements in maintaining Thailand's appeal as a top tourist destination.

Technological Integration

To streamline the collection process, the Ministry of Tourism and Sports is developing an application linked to Krungthai Bank's system. This app will facilitate the efficient collection of the travelling tax, ensuring transparency and ease of use for both tourists and authorities.

Potential Adjustments and Exemptions

While the initial phase focuses on air travelers, there are discussions about aligning the tax rates for land and sea arrivals with those for air travelers. This adjustment aims to prevent perceptions of unequal treatment among different entry modes. Additionally, cross-border merchants will be exempt from this tax, provided they present a valid border pass when crossing into Thailand from neighboring countries.

Impact on Tourism

The introduction of this travelling tax has been met with mixed reactions from stakeholders within Thailand's tourism industry. Proponents argue that it will provide much-needed funds for infrastructure improvements and enhance visitor safety through insurance coverage. However, critics express concerns about potential negative impacts on tourist numbers, particularly given the competitive nature of Southeast Asia's tourism market.

Despite these concerns, Minister Sorawong remains optimistic about the long-term benefits of the tax. He believes that improved facilities and comprehensive insurance coverage will ultimately enhance Thailand's reputation as a safe and welcoming destination for international travelers.

Thailand's new travelling tax represents a significant shift in how the country manages its tourism sector. By leveraging this additional revenue stream, Thailand aims to bolster its tourism infrastructure while providing added security for visitors. As the implementation date approaches, all eyes will be on how this policy unfolds and its impact on Thailand's vibrant tourism industry.