Thailand’s foreign tourist levy, reintroduced by Minister Surawong Thienthong, could take six months post-cabinet approval. Despite aims for automatic visitor insurance, industry opposition and scepticism persist. The levy, part of a new ETA system, mirrors South Korea’s model and will be operated by the Ministry of Foreign Affairs.
Thailand’s Minister of Tourism and Sports, Surawong Thienthong, on Thursday again committed the government to introducing the long-awaited Foreign Tourist Levy. The measure has divided the foreign tourism industry in Thailand. Some oppose the move as another tax on the industry, while the proposal for automatic insurance coverage for visitors is seen as a forward-thinking move. Nonetheless, even Thursday’s announcement failed to inspire confidence. The Ministry of Tourism and Sports clarified that even if such a measure were approved, it would take six months to implement. Certainly, over the last decade, there have been many instances where the tax was declared imminent. This time, the plan is coming as part of a new Electronic Travel Authorisation (ETA) announced by the minister in September.
The Ministry of Tourism and Sports issued another update on Thursday on the ongoing plan to introduce a tourist tax in Thailand. At this time, plans for such a levy can be traced back over a decade, with none of the plans ever coming to fruition.
The latest proposal comes after last year, under the previous minister Ms. Sudawan Wang-Suphakitkosol, the plan was scrapped.
In contrast, the ministry highlighted a government fund to pay for tourism-related mishaps. Indeed, officials claimed such a fund was never fully claimed. In truth, the scheme was limited in scope and particularly difficult for foreign tourists to successfully claim from.
Challenges with international airlines delay Thailand’s tourist levy, scrapped under former minister in 2023
Previously, even though approved by the government of General Prayut Chan-o-cha in February 2023, the ministry ran into difficulty with international airlines.
In short, they politely refused to take on responsibility for the collection of the fee. At one point, the plan would have required airlines to manage lists in conjunction with the Ministry of Tourism and Sports.
In December last year, the tourist levy plan to offer insurance was scrapped by the government.
Certainly, some within the tourism sector support a tourist levy. This support is based on the availability of automatic insurance for foreign tourists and at the same time the use of the funding to boost tourism infrastructure.
New Electronic Travel Authorisation (ETA) system coming soon with a ฿300 tourist levy and insurance
Tourist insurance plan for all visitors agreed by cabinet scotched again by top ministry officials for stop-gap measure
It is understood that under the revised plan now being pushed again by the minister, automatic tourist insurance is back. However, the cost of insurance will be capped at ฿60 of the ฿300 levy.
Revised levy includes capped insurance cost to address tourism volume and average visit length
At the same time, insurance experts suggest that this will be more than adequate. This is due to both the volume of foreign tourists and the relatively short stay per visit, understood to be under one month.
The refloated tourism levy was suggested in September by the newly appointed Minister of Tourism and Sports Surawong Thienthong. He presented it as part of a new Electronic Travel Authorisation (ETA).
In brief, this is a new screening system being introduced worldwide by governments to screen incoming passengers, particularly by air. It would be operated in conjunction with the Ministry of Foreign Affairs.
Certainly, sources suggest that Thailand is basing its plan on the South Korean model. Basically, all visitors to Thailand will be required to enter their details to obtain Electronic Travel Authorisation (ETA). When doing so, the visitors will pay the tourist levy and at the same time obtain limited but universal insurance coverage.
Nonetheless, this plan remains dogged by uncertainty. Given its already troubled background, many foreign tourists will await further details.
At the same time, there will be resistance to yet another requirement to enter the country.
Thailand’s new travel authorisation system faces pushback, scepticism over future implementation
Unfortunately, such mechanisms have proved problematic before. Certainly, there is also a lack of faith in Thai government online systems among foreign tourist.
This is based on past experience with the COVID-19 screening systems. Indeed, the Ministry of Tourism and Sports confirmed in September that the new Electronic Travel Authorisation (ETA) would use facilities developed during the COVID-19 emergency.
The government has confirmed, for instance, that payments will be through Krung Thai Bank, which has a good track record. Indeed, its payment apps are regarded as among the smartest in Thailand.
Meanwhile, the government insists that further work on applications and the online system is still required.
Official launch of Thailand’s tourism levy expected in six months after cabinet approval
Furthermore, officials are making it clear that it will take at least six months to launch the scheme. This is, of course, after the cabinet gives its approval.
Given the nature of politics right now in Thailand, there is always the prospect of opposition to the plan. Not least from the tourism industry itself.
Presently, tourism numbers are only in line with expectations, with anxiety within the industry about the substantial surge in the last quarter commencing the high season.
Therefore, there is always the likelihood of pressure to postpone the levy on visitors. Notably, it also comes in addition to an airport charge already levied on passengers both entering and leaving Thailand. In each case, these charges are more than double the new levy.
After that, officials at the Ministry of Tourism and Sports have a history over the last decade or so of postponing this particular measure.
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Further reading:
New Electronic Travel Authorisation (ETA) system coming soon with a ฿300 tourist levy and insurance
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Thailand could introduce tourist tax or levy next year as expert group begins to examine plans
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