Thailand is considering raising its proposed entry fee for foreign tourists above the initially planned 300 baht, according to Tourism and Sports Minister Surasak Phancharoenworakul. The fee, first suggested in 2020 but never enacted, might increase due to inflation and higher insurance expenses needed to cover medical treatment at private hospitals. The bulk of the generated revenue would go towards tourist insurance, while the rest would focus on maintaining tourist sites and improving infrastructure.
This announcement came shortly after the government revealed plans to eliminate 60-day visa exemptions for travelers from 93 countries, a move designed to address concerns over rising illegal activities by foreigners. Mr. Surasak noted that the ministry is working on finalizing the fee collection method to ensure it doesn’t negatively impact tourists. Two options are under consideration: incorporating the fee into airline tickets or utilizing the Thailand Digital Arrival Card (TDAC) system, which all foreign visitors must complete upon arrival.
Airlines have expressed concerns about imposing the tax only on foreign passengers, suggesting that the government might need to apply it to all passengers, with Thai nationals eligible for a refund via an application. Alternatively, the TDAC system could be used for tax collection. The final decision on the fee amount heavily depends on projected insurance costs and the financial burden of unpaid medical bills by foreign visitors, which cost Thai hospitals around 2.5 billion baht annually. Discussions with the Thai General Insurance Association are planned to determine an appropriate insurance premium.
Thienprasit Chaiyapatranun, president of the Thai Hotels Association, emphasized the need for clarity on the types of incidents covered by the insurance fund and the allocation of funds for infrastructure projects. Authorities should assess which incidents involving tourists strain hospital resources and consider coverage for events like floods, construction accidents, or motorcycle crashes without licenses.
In parallel, authorities are determining the timeline for reducing the 60-day visa exemption to 30-day and 15-day allowances, alongside visa-on-arrival arrangements expected to resemble those in place by 2024. Mr. Surasak highlighted the necessity for the Ministry of Foreign Affairs to coordinate with foreign ministries on these changes. The Ministry of Tourism and Sports will also request adjustments for specific countries, such as India, which is a major source of tourists but currently only qualifies for visas on arrival. Despite these changes, Mr. Surasak assured that the average tourist stay of nine days means the shortened visa exemption period should not deter arrivals. Additionally, the ministry has tasked the Tourism Authority of Thailand to review its 2026 goals amid concerns that geopolitical tensions, like the US-Iran conflict, could hinder achieving the target of 33 million foreign visitors.