Photo: Jonny Belvedere / Pexels
Thailand's Proposed 1,000 Baht Departure Tax: What Travellers Should Know
Thailand is considering a departure tax that would start at 1,000 baht per traveller, for all nationalities. The government projects it would raise about 45.9 billion baht a year. The Association of Thai Travel Agents warns it could cost the tourism sector 50 to 150 billion baht a year in lost revenue. Airlines have also spoken out against it. It is only a proposal for now, so the amount and start date could change, or it could be dropped.
What is being proposed
The tax would start at 1,000 baht per person on departure. It would apply to everyone, including Thais and foreign visitors. The 45.9 billion baht projection assumes about 32.9 million foreign tourists and about 13 million Thai outbound travellers, based on 2025 figures.
How much could tourism lose?
The Association of Thai Travel Agents estimates losses of 50 to 150 billion baht a year. Adith Chattananon, the group's honorary secretary-general, said 50 billion baht is the minimum, and the worst case would be higher. The worst case assumes at least 1 million travellers decide not to visit. That figure is well above what the tax would collect.
The research behind the numbers
- A 2023 study in the Journal of Travel Research found that each 10% rise in tourism-related taxes cuts tourist demand by about 4.5%.
- A Naresuan University team applied those metrics to Thailand. It is the same team that studied the 450-baht tourism fee.
- The team found that the extra 2,570 baht tourists are expected to pay before entering Thailand equals about 5.14% of average spending of 50,000 baht per trip.
The article doesn't explain how the 2,570 baht figure is built. It may combine the departure tax with the 450-baht fee and other charges, so treat it with caution.
For Thailand's top three markets (China, India and Malaysia), the same analysis suggests arrivals could fall by about 891,000 under a 10% drop, or about 446,000 under a 5% drop.
A precedent from the Maldives
The Maldives imposed a Tourism Goods and Services Tax in 2010. Tourist numbers from large markets then fell, including China, India, the UK and Russia.
Economy and jobs
The IMF forecasts Thai GDP growth of only 2.1%, which lags other major regional economies. Lower tourist demand would also hurt jobs in the hospitality sector.
What airlines are saying
The Airlines Association of Thailand, which has seven member airlines, has already said it opposes the tax. Airlines cite poor timing and a hit to Thailand's competitiveness.
Tapasson Bijleveld, executive chairman of Asia Aviation, which operates Thai AirAsia, said the tax would worsen Thailand's competitiveness and that Vietnam could overtake it as a destination. He added that if the government needs revenue, raising VAT would be a better tactic than hampering tourism.
What happens next
The IMF-World Bank Annual Meetings are in Bangkok this week. Tourism operators plan to meet the finance minister after the meetings end, and Adith Chattananon said tourism groups will take the issue to the finance minister.
What this could mean for visitors
- Cost: If it goes ahead as proposed, expect 1,000 baht per person when leaving Thailand.
- Combined charges: Together with the 450-baht tourism fee and other charges, the article puts the extra cost per visitor at about 2,570 baht, roughly 5% of a typical 50,000-baht trip. How that total is built is unclear.
- Possible market effects: Operators may respond with cheaper deals, or visitor numbers may fall, particularly from price-sensitive markets such as China, India and Malaysia.
- Nothing is final: Industry groups and airlines are lobbying against the tax, so keep an eye out for updates after the Bangkok meetings and any talks with the finance minister.
Information sourced from Bangkok Post.