Thailand is contemplating an increase in its long-anticipated entry fee for foreign tourists, initially set at 300 baht, due to inflation and escalating insurance costs. Tourism and Sports Minister Surasak Phancharoenworakul announced on Wednesday that the fee, proposed in 2020 but yet to be enforced, might see an adjustment to accommodate rising costs associated with extending insurance coverage at private hospitals. The revenue generated from this tourism tax is primarily intended to fund tourist insurance, while the remainder would be allocated for the maintenance of tourist sites and infrastructure enhancements.
The announcement follows the government’s decision to discontinue 60-day visa exemptions for travelers from 93 countries, a strategy aimed at curbing illegal activities by foreigners. The Ministry of Tourism and Sports is currently working on the specifics of how this fee will be collected without impacting the sentiment of potential visitors. Two methods are under consideration: integrating the fee into airline ticket prices or collecting it through the Thailand Digital Arrival Card (TDAC) system, which is mandatory for all foreign arrivals.
Airlines have raised concerns about charging only foreign passengers, suggesting that if the fee is included in ticket prices, it might need to apply to all passengers with Thai nationals eligible for refunds via an application. Alternatively, the TDAC system could provide a more streamlined approach to collecting the tax. The final fee amount will largely depend on the estimated costs for accident insurance and treatments at private hospitals, as unpaid medical bills from foreign visitors have been found to cost Thai hospitals approximately 2.5 billion baht annually.
In preparation for these changes, the ministry plans to collaborate with the Thai General Insurance Association to determine a suitable insurance premium. Thienprasit Chaiyapatranun, president of the Thai Hotels Association, emphasized the need for clarity on the types of incidents the insurance fund would cover and the specific portion of funds allocated for infrastructure projects. Authorities are urged to evaluate which incidents involving foreign tourists place the greatest strain on hospitals and whether the policy should cover events like floods or accidents involving unlicensed motorcycle riders.
Regarding visa policies, Thailand is also adjusting the timeline for phasing out the 60-day visa exemption, reverting to 30-day and 15-day stays, and visa-on-arrival arrangements planned for 2024. Coordination with foreign ministries of other countries is essential, as the Ministry of Foreign Affairs leads this effort. The Tourism and Sports Ministry intends to propose adjustments for selected countries, like India, a major source of tourists for Thailand, suggesting a 15-day visa exemption to encourage travel. The ministry is also revising its strategies for 2026, considering that ongoing global conflicts could impact foreign arrivals, although the average tourist stay is just nine days, indicating the shortened exemption may not significantly affect visitor numbers.