Thailand’s government is deliberating an increase in its proposed foreign tourist entry fee, initially set at 300 baht, due to inflation and rising insurance expenses. Tourism and Sports Minister Surasak Phancharoenworakul announced that this fee, intended to enhance coverage at private hospitals, has been under consideration since 2020 but has yet to be implemented. The revenue generated from this tourism tax will primarily support tourist insurance, with the remainder allocated for maintaining attractions and upgrading infrastructure.
This announcement follows the government’s decision to eliminate 60-day visa exemptions for travelers from 93 countries, a measure aimed at curbing illegal activities by foreigners. Minister Surasak emphasized that his ministry is refining the fee collection process to minimize any negative impact on travelers. The options under consideration include integrating the tax into airline tickets or utilizing the Thailand Digital Arrival Card (TDAC) system for collection.
Challenges have arisen with airlines, which are unable to levy the fee solely on foreign passengers without including Thai citizens. This may necessitate collecting the tax from all passengers, with refunds available to Thai nationals through an application. Alternatively, the TDAC system, mandatory for foreign visitors upon entry, could serve as the collection method. The final fee amount will largely depend on the anticipated costs associated with accident insurance and treatment at private hospitals, as unpaid medical bills from foreign visitors reportedly cost Thai hospitals around 2.5 billion baht annually.
Discussions are ongoing with the Thai General Insurance Association to determine an appropriate insurance premium, according to Minister Surasak. Thienprasit Chaiyapatranun, president of the Thai Hotels Association, has called for clarity on the specific incidents the insurance fund will cover and the precise allocation for major infrastructure projects. Authorities are assessing the types of incidents involving tourists that strain hospital resources, such as accidents without licenses, and whether policies will extend to events like floods or construction accidents.
In parallel, authorities are finalizing the timeline for transitioning from the 60-day visa exemption to the previous 30-day and 15-day allowances, alongside visa-on-arrival arrangements expected in 2024. Minister Surasak mentioned that the Ministry of Foreign Affairs must coordinate with foreign ministries to manage these changes. The Tourism and Sports Ministry is advocating for adjustments in the visa scheme for select countries, citing India as a key market where a 15-day visa exemption is preferred. Furthermore, the ministry has urged the Tourism Authority of Thailand to revise its 2026 goals and strategy, considering the potential impact of the ongoing US-Iran conflict on achieving the target of 33 million foreign arrivals. Despite the shortened visa exemption period, Minister Surasak believes it will not deter tourists, as their average stay is typically nine days.