Thailand Scraps Controversial Tourist Fee, Begins Luxury Travel Push

After years of will they, won’t they, Thailand has finally decided to scrap the contentious proposal to impose a THB 300 ($8.20) tourism fee on international tourists arriving by air.

Prime Minister Srettha Thavisin said this week that his administration would abandon the previous government’s plan.

In 2021, to revive the tourism industry, the tourism ministry proposed a THB 500 tourism fee. The head of the Tourism Authority of Thailand at that time said, “The additional cost won’t have an impact on tourists as we want to focus on the quality market.”

Then, in February of last year, the Thai cabinet approved that international tourists arriving by air would pay THB 300 from June 1, and those entering by land or sea would pay a fee of THB 150 ($4).

What Was the Tourism Fee For?

The government intended to use the revenue from the tourism fee to fund tourism management and insurance for international visitors. This aimed to address the financial strain on the Thai government, which then stated it spends approximately THB 300 million-400 million annually on healthcare for tourists. That’s the cost of paying for healthcare to treat tourists injured while vacationing in Thailand.

However, the tourism fee faced significant opposition from private stakeholders.

Thavisin, who took office in August, emphasized that eliminating this fee could potentially lead to greater economic benefits.

On June 10, the Thai government’s public relations department stated that they expect the removal of the fee to encourage higher spending by tourists in other sectors, thus providing a more substantial boost to the economy than the fee itself would have.

Prime Minister Thavisin suggested that the influx of tourists without the additional fee could increase spending on shopping, dining, and other activities, thereby generating more revenue. He also noted that if the government successfully garners additional revenue from other tax sources, it could adequately support the tourism sector as needed.

The Luxury Pivot and Visa Bonanza

In line with this strategic shift, Thailand has been focusing on attracting luxury tourists. The newly launched “Amazing Thailand: Your Stories Never End” campaign highlights luxury travel experiences, including stays in pool villas in Phuket and Phang Nga, treehouse villas on secluded islands, upscale tented camps, and gastronomic tours featuring both local and Michelin-starred cuisine.