Thailand is considering an increase to its proposed foreign tourist entry fee, initially set at 300 baht, according to Tourism and Sports Minister Surasak Phancharoenworakul. The fee, which has been in the planning stages since 2020 but not yet implemented, may rise due to inflation and the growing costs of insurance, aiming to extend coverage at private hospitals. The tourism tax revenue is primarily intended for tourist insurance, with the remainder allocated to maintaining tourist attractions and infrastructure improvements.
The move to adjust the entry fee comes just after the Thai government decided to eliminate 60-day visa exemptions for travelers from 93 countries. This long-considered decision addresses concerns about rising illegal activities by foreigners. Minister Surasak emphasized that his ministry is finalizing the fee collection methods to ensure a smooth process that won’t negatively impact traveler sentiment. The potential collection methods include adding the fee to airline tickets or using the Thailand Digital Arrival Card (TDAC) system required for all foreign visitors upon arrival.
A challenge in the collection process arises as airlines have indicated they cannot apply the tax exclusively to foreign passengers, necessitating a system where all passengers are charged, and Thai nationals can apply for a refund post-travel. The alternative TDAC system could simplify this, applying the fee directly to foreign visitors. The final fee amount will largely depend on the cost projections for accident insurance and treatment at private hospitals, as unpaid medical bills by foreign tourists reportedly cost Thai hospitals around 2.5 billion baht annually.
The Ministry of Tourism and Sports plans to engage with the Thai General Insurance Association to determine suitable insurance premiums. Thienprasit Chaiyapatranun, president of the Thai Hotels Association, has called for transparency in what types of incidents the insurance fund will cover and how much will be allocated to infrastructure projects. This clarification is crucial to understanding the burden on hospitals from incidents involving foreign tourists, such as floods, accidents during construction, or motorcycle mishaps involving unlicensed riders.
In tandem with these developments, authorities are working on the timeline for transitioning from 60-day to shorter 30-day and 15-day visa exemptions, alongside visa-on-arrival options that are expected to resemble the system in place by 2024. Minister Surasak mentioned the Ministry of Foreign Affairs is tasked with coordinating these changes with foreign governments. Additionally, the Ministry of Tourism and Sports is advocating for adjusted visa schemes for specific countries, like India, which is a major market for Thailand but currently only eligible for visas on arrival. As part of a broader strategy revision for 2026, the Tourism Authority of Thailand has been asked to adjust its goals, considering potential impacts from ongoing global conflicts such as the US-Iran tensions. Minister Surasak also noted that the reduction in visa exemption days is unlikely to deter tourists, as the average stay remains around nine days.