Thailand is contemplating an increase in its long-planned entry fee for foreign tourists, which was initially set at 300 baht, according to Tourism and Sports Minister Surasak Phancharoenworakul. Originally proposed in 2020, the tourism tax has yet to be implemented. However, due to inflation and rising insurance costs aimed at extending coverage at private hospitals, the fee might exceed the initial 300 baht. Authorities have indicated that the bulk of the revenue generated from this tax would be directed towards tourist insurance, with the remainder allocated for the maintenance of tourist attractions and infrastructure improvements.
Minister Surasak’s comments came on the heels of the government’s decision to end 60-day visa exemptions for travelers from 93 countries, a move long considered as a response to concerns over rising illegal activities by foreigners. He assured that his ministry is working on the final details of the fee collection method to ensure it does not negatively impact traveler sentiment. Two main collection options are being considered: inclusion in airline ticket prices or through the Thailand Digital Arrival Card (TDAC) system. However, airlines have expressed concerns about discriminating against foreign passengers by solely taxing them, suggesting that if implemented, the tax might have to apply to all passengers, with Thais eligible for refunds via an application.
The potential increase in the entry fee hinges largely on the anticipated costs of accident insurance and treatments at private hospitals. Studies have shown that unpaid medical bills by foreign visitors cost Thai hospitals roughly 2.5 billion baht annually. The ministry is planning discussions with the Thai General Insurance Association to determine an appropriate insurance premium. Thienprasit Chaiyapatranun, president of the Thai Hotels Association, emphasized the importance of clarifying which incidents the insurance fund would cover and the exact allocation for significant infrastructure projects. Authorities are urged to evaluate incidents involving foreign tourists that burden hospitals and consider whether policies will cover events like floods, construction accidents, or motorcycle crashes involving unlicensed riders.
In tandem with these discussions, authorities are determining the timeline for ending the 60-day visa exemptions and reverting to 30-day and 15-day allowances, and visa-on-arrival arrangements similar to those planned for 2024. Minister Surasak indicated that the Ministry of Foreign Affairs, which leads the national visa policy committee, must coordinate with foreign ministries. The Ministry of Tourism and Sports intends to propose adjustments to the visa scheme for specific countries. India, a significant source market for Thailand, currently only qualifies for visas on arrival, prompting the ministry to favor a 15-day visa exemption for Indian tourists.
Additionally, the Tourism Authority of Thailand has been asked to revise its goals and strategies for 2026, considering the potential impact of the prolonged US-Iran conflict on reaching the target of 33 million foreign arrivals. Despite these changes, Minister Surasak remains optimistic, stating that the reduced visa exemption period should not deter tourists, as the average stay for most foreign visitors is around nine days.