Thailand is contemplating an increase in its planned foreign tourist entry fee, initially set at 300 baht, with the possibility of a higher charge due to inflation and rising insurance costs. Tourism and Sports Minister Surasak Phancharoenworakul disclosed this on Wednesday, noting that the fee, first proposed in 2020 but yet to be implemented, is aimed at extending insurance coverage at private hospitals. The bulk of the revenue from these fees is intended to fund tourist insurance, while the rest will be used for maintaining tourist attractions and upgrading infrastructure.
The announcement followed the government’s decision to eliminate 60-day visa exemptions for travelers from 93 countries, a measure long in the pipeline, introduced due to concerns over increasing illegal activities by foreigners. Minister Surasak emphasized that the ministry is finalizing the fee collection method to ensure it does not negatively impact tourists’ perception. Two collection methods are under consideration: incorporating the fee into airline tickets or utilizing the Thailand Digital Arrival Card (TDAC) system.
Airlines have expressed concerns about the potential discrimination of taxing only foreign passengers, suggesting that if the government opts for this method, it might need to apply the tax to all passengers and then offer refunds to Thai nationals via an application. Alternatively, the TDAC system, mandatory for all foreign visitors upon arrival, could be used to levy the tax. The final fee amount will heavily depend on the estimated costs of accident insurance and treatments at private hospitals, as foreign visitors currently leave unpaid medical bills amounting to approximately 2.5 billion baht annually.
The ministry plans to negotiate a suitable insurance premium with the Thai General Insurance Association as the next step. Thienprasit Chaiyapatranun, president of the Thai Hotels Association, highlighted the need for the ministry to clarify which incidents the insurance fund would cover and the exact portion allocated for major infrastructure projects. Authorities are urged to evaluate the types of incidents involving foreign tourists that burden hospitals and consider coverage for events like floods, construction accidents, or unlicensed motorcycle crashes.
In parallel, authorities are determining the timeline for phasing out the 60-day visa exemption, reverting to 30-day and 15-day allowances, and visa-on-arrival provisions similar to those anticipated for 2024. Minister Surasak mentioned the Ministry of Foreign Affairs’ role in coordinating with other countries’ foreign ministries on this policy shift. The Tourism and Sports Ministry is advocating for adjustments in the scheme for certain nations, such as India—a top-five source market for Thailand—where a 15-day visa exemption is preferred. Additionally, the Tourism Authority of Thailand has been tasked with revising its 2026 goals and strategy, with the ongoing US-Iran conflict potentially affecting the target of 33 million foreign arrivals. Despite the shortened visa exemption period, Minister Surasak believes it will not impact tourist numbers, as the average stay is about nine days.