BANGKOK – The government of Thailand would be shooting down a proposal under which a tourism tax had to be imposed for visitors landing in the country.
Thai Prime Minister, Srettha Thavisin has confirmed the abandonment of the proposed $8 tourism fee targeting air passengers, initially proposed by the previous administration.
Srettha clarified on Saturday that his government has no intentions of implementing the policy, which stirred opposition from the private sector since its proposal in February 2023.
In his statement, the Prime Minister emphasized a broader perspective, asserting that while a fee of 300 THB per person could yield short-term revenue, encouraging more tourists to enter the country without such charges could lead to increased spending on shopping and other activities.
Srettha noted that it was important to consult the relevant stakeholders in decision-making while indicating a willingness to explore alternative revenue sources.
The premier noted that additional funds could be allocated to support the tourism sector if generated through other tax channels.
Responding to Thailand’s decline in the World Economic Forum’s tourism and travel development index, falling to 47th out of 119 countries, Srettha refused to pin blame on anyone.
The premier – who has been active in inking visa-free agreements – outlined his government’s commitment to ongoing development across all sectors, emphasizing tourism as a crucial revenue generator for the nation’s economy.
Thailand is focusing on the tourism sector with each passing day, the results of which are evident. As a case in point, 14.3 million tourists were recorded from January to May 26 this year and the authorities have set a target of welcoming a record 40 million foreign arrivals by the end of the year.
The country welcomed 39.9 million tourists in 2019 before the pandemic and it seems to be on track to reach the target through a relaxed visa regime and sweeping changes being announced.
