KUALA LUMPUR – Malaysians will be among those affected as Thailand is planning to impose a 300 baht (approximately RM39) travel tax on foreign visitors next year.
The “travelling tax”, previously dubbed the “landing fee”, is set to fund insurance for foreign tourists and enhance tourism facilities, with the implementation expected around mid-2025, Bangkok Post reported.
Tourism makes up a big part of Thailand with over 28 million international tourists recorded in 2023, which makes it the most popular tourist destination in Southeast Asia, especially with Malaysians.
With the close geographical proximity and various travel options, Malaysians make up the largest share of visitors at around 4.6 million, or 16% of the total in 2023. Given this significant presence, the new travel tax is expected to impact a considerable number of Malaysian tourists.
While some travellers might view the fee as an added expense, the government expects the benefits – such as improved facilities and mandatory insurance coverage – to enhance the overall tourist experience in Thailand.
According to Thailand’s Tourism and Sports Minister, Sorawong Thienthong, the proposal will be submitted for cabinet approval in early 2025, and, if approved, will require at least six months of preparation before it can be implemented.
The 300-baht fee will initially apply to air travellers, who constitute roughly 70% of foreign visitors to Thailand. Sorawong indicated that the payment system will be similar to South Korea’s K-ETA, where travellers register and pay online before entering the country.
The fee collection system will be linked to Krungthai Bank and will be available on a website and an app being developed for this purpose.
The revenue generated from the tax will be used to provide insurance coverage for tourists and support tourism development projects, according to The Nation. The insurance policy will cover accidental death with payouts of up to 1 million baht and injuries with a maximum of 500,000 baht.
This coverage will apply to stays of up to 30 days, a period that covers approximately 87% of foreign arrivals. The remaining funds will be allocated to improving tourist attractions and facilities, including the construction of accessible amenities for people with disabilities.
Sorawong added that the tax would not initially apply to land and sea travellers, who would be charged a lower fee of 150 baht. However, this may be adjusted to align with the air travel fee in the future to avoid perceived disparities.
Exceptions will be made for cross-border traders, who would be exempted upon presenting a border pass.
The tax proposal, which has undergone various stages of approval since it was first endorsed in principle in February last year, is part of Thailand’s broader strategy to boost tourism revenue while also ensuring safety and accessibility for its visitors. – October 24, 2024