By Thailand is set to implement a new travelling tax aimed at boosting its tourism sector and enhancing facilities for visitors. The Department for Environment, Food and Rural Affairs (Defra) confirmed that the tax will be enforced from mid-2025, initially targeting arrivals by air. This strategic move is part of Thailand’s broader initiative to foster sustainable tourism and stimulate economic growth.
Financial Implications of the Travelling Tax
The introduction of the travelling tax will require foreign visitors to pay a fee upon arrival, with the goal of generating additional revenue for tourism development.
Tax Rates and Application
- Air Arrivals: 300 baht (S$11.74) per visitor
- Land or Sea Arrivals: 150 baht (S$5.87) per visitor
Defra has mandated that businesses comply by clearing their existing stock of disposable vapes by June 1, 2025. The tax will be collected through an online application system linked to the Krungthai Bank network, ensuring a streamlined and efficient process for both tourists and businesses.
Allocation of Collected Funds
The revenue generated from the travelling tax will be directed towards several key areas to enhance the overall tourist experience in Thailand.
| Allocation Area | Purpose |
|---|---|
| Tourism Development Fund | Improvement of tourist attractions and construction of new facilities |
| Visitor Insurance | Providing basic insurance coverage for foreign tourists |
| Public Infrastructure | Building facilities for people with disabilities and enhancing public restrooms |
These funds aim to improve the infrastructure that supports tourism, making it more accessible and enjoyable for visitors from around the world.
Enhanced Visitor Insurance Coverage
As part of the new travelling tax, Thailand will offer basic insurance coverage to foreign tourists, adding an extra layer of security during their stay.
Insurance Details
- Death Coverage: Up to 1 million baht
- Injury Coverage: Up to 500,000 baht
This insurance is designed to cover medical expenses in case of unforeseen incidents, complementing any personal travel insurance that tourists may already have. The provision of such insurance underscores Thailand’s commitment to the safety and well-being of its visitors.
Impact on Thailand’s Tourism and Economy
The travelling tax is expected to have a significant positive impact on Thailand’s tourism industry and the broader economy.
Economic Benefits
- Revenue Generation: Increased funds will support tourism infrastructure and services.
- Job Creation: Enhanced facilities and tourist attractions will create new employment opportunities.
- Sustainable Growth: Focus on sustainable tourism practices will ensure long-term economic stability.
Ryo Bunno, Executive Director of the JNTO Delhi Office, commented, “The increase in spending by visitors from India is a testament to the country’s prosperity and growing affluence. We are optimistic that this trend will contribute to the continued growth and development of the tourism sectors in both India and Japan.”
Future Developments and Strategic Initiatives
Looking ahead, Thailand plans to further develop its tourism strategies to maximize the benefits of the travelling tax.
Planned Initiatives
- Sustainable Tourism Programs: Promoting eco-friendly practices among tourists and businesses.
- Infrastructure Enhancements: Building more accessible facilities to cater to diverse tourist needs.
- Marketing Campaigns: Increasing global awareness of Thailand as a premier travel destination through targeted marketing efforts.
By implementing these initiatives, Thailand aims to solidify its position as a top tourist destination while ensuring that the growth of the tourism industry is sustainable and beneficial to both visitors and the local economy.