Thailand finds itself at the centre of a new debate over visitor taxation, as the new tourism minister, Sorawong Thienthongrecently announced its desire to reintroduce a tourist tax. With a price of 300 bahts, i.e. approximately 8 € for arrivals by air and 150 baht, equivalent to 4 €This initiative is designed to support Thailand's tourism industry. This relaunch of the tax, abandoned by the previous administration, raises questions about its potential impact on the flow of tourists and the country's development.
Thailand, a popular destination for travellers from all over the world, is about to revive a controversial subject: the tourist tax. The new Minister for Tourism, Sorawong ThienthongThe Thai government has announced its intention to introduce a tax of 300 baht (around €8) for tourists arriving by air, and 150 baht (€4) for those arriving by land or sea. This return to the forefront of such a measure raises questions about its implications for the Thai tourist industry.
Background to the tourist tax
Historically, the tourist tax in Thailand is not a new idea. It was initially envisaged by the previous government, but the project was abandoned following widespread criticism from the private sector. Now, with the arrival of Sorawong Thienthong at the head of the Ministry of Tourism, the idea is making a comeback. He has been in office since 16 September, and is determined to implement this measure in order to improve the infrastructure and services offered to visitors.
The objectives behind the tax
The introduction of this tourism tax is part of an overall strategy to boost Thailand's tourism industry. The Minister stated that the revenue generated by this tax would be reinvested in developing tourism infrastructure, improving existing attractions and enhancing visitor safety. His ambition is clear: to achieve 3,000 billion baht in tourism revenue this year. A colossal task involving a number of strategic initiatives.
Initiatives to support tourism
- Artificial attractions
The government plans to support the creation of new attractions, offering tax incentives to private investors to boost the sector. - Promoting the provinces
The "One Map Tourism"The aim is to encourage travellers to explore Thailand's many provinces beyond the iconic destinations of Bangkok and Phuket. - sporting events
Sorawong Thienthong also hopes to attract more visitors by capitalising on the organisation of major sporting events, such as a potential Formula 1 Grand Prix in Bangkok. - Strengthening air links
Discussions are underway with airlines to re-establish pre-pandemic connections and open up new routes to lesser-known cities.
An uncertain timetable for implementation
Despite the announcement of the tax, the timetable for its implementation remains unclear. The Minister stressed the need for in-depth studies to assess the feasibility of the collection system and the methods of application. Although he envisages a launch in the last quarter of 2024, an implementation date of 2025 cannot be ruled out. This timeframe is already raising questions about the effectiveness of the measure.
Mixed reactions within the industry
Reaction to the measure has been mixed, with many in the tourism industry expressing concern. While some believe that the tax could fund essential improvements for tourists, others fear that its introduction could affect visitor numbers, by deterring potential visitors or reducing their spending once they are here. The voice of the private sector is therefore crucial, and the Minister has promised to meet the main players to discuss the project and allay concerns.
A global trend
Thailand is part of a wider trend in global tourism. Many iconic cities, such as Venice, Barcelona or the BhutanSome of the world's major tourist destinations have already introduced similar taxes to regulate tourist flows and generate financial resources. Each destination is seeking to strike a balance between financing its development and maintaining its appeal in the face of increased competition.
For more information on tourist tax and its implications, don't hesitate to consult resources such as Immithai.
Comparison of Tourist Tax Amounts by Mode of Access
| Access mode | Amount of tax |
|---|---|
| Arrival by air | 300 baht (€8) |
| Arrival by land | 150 baht (€4) |
| Arrival by sea | 150 baht (€4) |
| Impact on the tourism budget | Increase in visitor spending |
| Tourism revenue target | 3,000 billion baht expected |
| Use of funds raised | Tourism infrastructure development |
| Start of collection | Possibly at the end of 2024 |
| Reaction from the private sector | Concerns about tourist numbers |
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