With tourism to and within Asia virtually halted by the coronavirus pandemic, Thailand has struggled mightily. In 2019 tourism represented over 18% of the country’s GDP.
So the country is going to impose a new tax on foreign tourists starting in 2022.
The Tourism and Sports Ministry is poised to start collecting a 500-baht tourism fee for a “tourism transformation fund” next year, with the budget following a co-payment model.
The Centre for Economic Situation Administration last week approved the creation of the fund, which is expected to subsidise projects that transform the industry, focusing on high-value and sustainable tourism.
Earlier this year the country decided to add the tax at 300 baht per person, but increased it to fund more projects “initiated by the private sector, community enterprises, or social enterprises that would like to transform their business…helping the country restructure from mass tourism to high-value or a bio-, circular and green economic model; and environmentally concerned tourism.”
A tax on tourism to promote tourism! When you tax something you get less of it, though the level of the effect is going to be determined by,
- Elasticity of demand. How badly do people want to visit Thailand and what alternatives do they have?
- How much the tax affects the overall cost of a trip. The smaller the cost relative to total trip cost, the less of an effect it can be expected to have. That’s why, how the funds are spent notwithstanding, the tax itself is the point
Embedded in their explanation of why Thais shouldn’t worry about the fee is precisely that it will chase away tourists for whom the fee is relatively more significant. The Tourist Authority of Thailand head says, “The additional cost won’t have an impact on tourists as we want to focus on the quality market.” In other words they know it will chase away backpackers, and that’s ok because they no longer want backpackers.
This makes as much sense as trying to eliminate street food in Bangkok.
(HT: Drew J.)
Doesn’t the U.S. have a similar tourist fee that is used to fund tourism?
A $15 tourist tax isn’t going to chase away Americans/Europeans already spending thousands on flights, lodging and hotels.
12 Euros or $15 US and relatively negligent prices in other currencies. This fee can be added at the airport and few would figure it out.
I have a pretty good feeling that people who are going to fly to Thailand are not fazed by a 500 baht (currently less than $15 USD) fee. Given that people are visiting to be tourists (generally speaking), it might have the opposite effect, in that people think that they are contributing to the well-being of Thai society.
Furthermore, if I’m going to spend $1000 to go somewhere, an extra $15 means nothing. If I’m in SE Asia already, and it costs $200, an extra $15 won’t make me fly to another country.
I’m just not really sure how it marginally affects tourism in Thailand, and I think it’ll raise a lot of revenue, honestly.
I could be wrong though.
Even backpackers would have $15 to spare so I doubt this fee would scare them away to not visit Thailand.
I don’t know level of corruption in Thailand but hopefully that fee will be put into good use versus just being pocketed by someone in the government.
I’m pretty sure most people won’t even know about the fee when they book the trip. And having to pay the $15 fee will be pretty insignificant to most people in the grand scheme of things.
All the Thai ATMs charge 300 Bhat fee for foreign cards. They should use that money
300 thai baht. Currently $8.89. Will not stop me from booking a trip. If someone can’t pay that. They are truly low value tourist. Just saying.
Not saying this is a good idea, but it is one that comes directly from the USA, virtually every US State Capitol, and every major US City government that has a silly tourist tax that similarly does nothing to “promote” tourism and everything to line the pockets of the local government Mafia and fellow travelers.
It is dishonest to say this is about promoting tourism, but they don’t want to say what it really is . . . discriminating against those perceived to be low value added tourists who don’t spend much money but add bodies which are no less likely to transmit disease or use a hospital bed as those who spend a lot. Not saying this is wise or fair, but of a piece with Bali saying that it will only accept tourists from the 5 most spendy countries, and won’t accept Australians who typically spend little beyond needed to stay well marinated.
I am all god for spending $15 for goods and services I receive but I would nor rather sponsor pet projects of Thai bureaucrats. And the price will go up, perhaps, even before the fee is implemented. Look what happened with rental cars fees and taxes in USA.
This from a place where you can get sick off their food and liquor talk about low value.
A 500 baht tourist tax will discourage exactly 0 travelers, backpackers or otherwise. Sometimes a dogmatism blinds one to reality.
Good ! The $15.00 USD is twice the money backpackers spend in one day in SE Asia. Sorry but I don’t see any value on that kind of tourism. They just trash the place.
Gary once again making the proverbial mountain out of a mole hill. As many have noted it is about $15 US. Many countries have entry or exit fees this much or more. It will make ABSOLUTELY no difference to, I’d estimate, 99% of tourists. Yes you have some that are morally opposed to paying ANYTHING and will not go (their loss) and maybe a small subset of travelers that the fee dissuades this from going but if $15 means you can’t afford to visit then you likely shouldn’t have been going in the first place.
PLEASE Gary – get back to airline related issues (but drop the fixation on anything to do with AA) and stop with playing up the click bait and national enquirer stories. You are losing whatever credibility you once had.
Being as you already pay APD flying from the UK to Thailand, £82 economy and £180 premium, I don’t think a few pounds more will make any difference.
@Graham:
“ I don’t think a few pounds more will make any difference.”
That’s what I said when I ate that whole pie last week. And the week before, and……
I live in Miami Beach, where we also want a higher quality of tourist than the spring break low-lifes who trash the place in March while spending very little in the city. I relate to the idea that they don’t care if it scares off the backpackers because they don’t want the backpackers anymore. Maybe the tax doesn’t scare them off but it could be used to attract the higher-quality ones they want. Pretty good idea, I’m thinking.
500 baht won’t drive away backpackers or anyone else. Many countries have fees of this nature, often in higher amounts than that. Not much to get either upset or excited about.
I wish it would be higher like 300 dollars. That way more old men can have a better chance with the bar girls.
500 Baht will have little to no effect at all. 5000 may make a difference.
Its not so much the tax, but the comlounding of charges throughout a tourism holiday, then the 7 day quarantine, prices Thailand out of the tourist trade. I spent most of my life in the industry, an l found two things which baulked all tourists, they were taxes and costs which gave them nothing, and waisted time which ate into their holidays
I see, drive off the young and less affluent travelers so they won’t have great experiences that will get them to return when they have more money. Good thinking!
Joey, the level of corruption in Thailand is very high. From the king on down.
Keep in mind that in Thailand it’s a crime to criticize the king.
Nonsense analysis . The average backpacker comes to Thailand for at least a month. You are adding a prorated 50 cents per day surcharge. Ridiculous.
The word Tourist has become as dehumanised as the word blockchain or android in its connection to any man woman or child in Thailand
Good tourism tax! Only if they are also used in supporting independently runned creative tourist attractions eg. small museums or even roadside antique dealers with lots of look & see tourists but less customers. Only problem is to distinguish the genuine and fake Thai applicants of this tourism incentives after the tough 1 & half year of COVID-19 empty financial strain.
Your pocket out to my pocket in. Whose usage, my u$age. Same same sir.
MI ca$a $u ca$a.
This is Thailand. Pay up!
Just do it!
No issue with a tourism levy for tourists entering.
Lets hope this can be charged in the flight fee, not for tourists queuing separately to make another payment on arrival.
The fee is manageable for any traveler, and surely a way to recoup a bit of lost tourist revenue. The fact that it’s spun as a means to discourage anyone is absurd and seems more face-saving than anything else!
Another unsubstantiated fee and reasoning. What’s next? We want only wealthy tourists? We want only healthy tourists from South Africa or The Middle East?
Please, the Thai economy won’t rebound until laws are changed and/or modified…. it’s called transparency. So many schemes and scams as it stands now, it’s a wonder why they continue to plummet the Thai Baht currency.
Since the vote to allow communist Chinese ships to be built on a Thai Navy base….and spend money they don’t have on old tech first strike weapons (diesel electrics subs) also Chinese…. it begs the question: is it Thailand I’m visiting or is it an extension of The Peoples Liberation Army of China?
If people can pay plane from Europe/Usa it will proberly not do them any harm 😉 (but i will not pay a turist fee,then i can visit another place,and spend my Euros/Dollars)
Maybe better they fought goverment coruption 😉
Thailand, money number one, duel pricing already exists, ohhh look its a falang lets rip them off.
Now another extra charge from the department of corruption, will the ever learn not to bite the hand that feeds or is it already to late?
Must be 5000 thb so can see the result of cheap Charle still can afford to travel/visit Thailand???..
Rich people will not come to Thailand, there are far, far superior places to go, people came to Thailand because it was cheap and you were sure of a good time those days have long gone (expat)