Planning a Thailand trip? You may soon have to pay a charge just to leave the country

Thailand is considering new taxes on travellers as the country looks for more revenue while its tourism industry continues to recover from the pandemic, Bloomberg reported.

Prime Minister Anutin Charnvirakul’s government is considering an outbound tax of about 1,000 baht, or around ₹2,830, on Thai and foreign travellers leaving the country. Separately, the government is also planning a 450-baht fee, or around ₹1,274, for foreign visitors arriving in Thailand by air.

The proposals come as Thailand faces weak domestic demand and sluggish economic growth. The country also needs to raise more revenue after years of budget deficits of about 3%-4% of gross domestic product have reduced its fiscal space.

But the proposed taxes could put pressure on the tourism industry, which remains an important source of jobs, spending and foreign-currency earnings.

The Thai Travel Agents Association has warned that the outbound tax could sharply reduce passenger numbers. This could lead airlines to cut flight frequencies and eventually hurt inbound tourism, the group said. It also said such an outcome would go against the government's plan to make Thailand a regional aviation hub.

Don't Miss: US work visa overhaul: Proposal to end H-1B deference policy puts lakhs of Indians at risk

Thailand welcomed about 24 million foreign tourists through October 10, down 4% from a year earlier. The figure is also still well below the nearly 40 million visitors recorded in 2019, before the pandemic.

The Tourism Authority of Thailand expects about 33 million foreign visitors this year. If the total falls below last year's 32.97 million, it would mark the first back-to-back annual decline outside the pandemic since at least 1995.

The proposed departure tax would revive a levy that was last set at 500 baht, or around ₹1,415, about two decades ago, Finance Ministry Permanent Secretary Lavaron Sangsnit said. Existing law allows the government to charge as much as 5,000 baht( ₹14,150) although Lavaron said the rate under consideration is around 1,000 baht.

The tax could be included in airline tickets instead of being collected separately when travellers leave the country, Lavaron said.

Must Read: Fewer seats, higher fares: Why flying home this festive season costs more

He argued that people who can afford to travel overseas have a greater ability to bear the additional cost. The proceeds could potentially be used to promote domestic tourism and fund travel insurance or emergency medical coverage.

Separately, the government plans to charge foreign visitors arriving by air 450 baht, or around ₹1,274, Tourism and Sports Minister Surasak Phancharoenworakul said.

More than 80% of respondents supported the proposal in a recent online public consultation, he said.

The two measures could give Thailand additional revenue, but they also come at a time when the country is trying to revive tourism and attract more visitors. The proposed charges are therefore likely to test how much additional cost travellers and the tourism industry are willing to absorb.