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Thailand Implements Tech-Driven Tourist Tax for International Visitors

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Thailand is contemplating an increase in the entry fee for foreign tourists, originally set at 300 baht, according to Tourism and Sports Minister Surasak Phancharoenworakul. This fee, first suggested in 2020 but yet to be enforced, may rise due to inflation and escalating insurance costs. The majority of this revenue is intended to support tourist insurance, with the remainder allocated for maintaining tourist sites and enhancing infrastructure.

Minister Surasak’s announcement comes shortly after Thailand’s decision to revoke 60-day visa exemptions for travelers from 93 countries, a move long in the making due to concerns over illegal activities by foreigners. The ministry is working on finalizing the fee collection process to avoid negative impacts on traveler sentiment. Options being considered include collecting the fee via airline tickets or through the Thailand Digital Arrival Card (TDAC) system.

Airlines have expressed concerns about the feasibility of imposing the tax solely on foreign passengers, suggesting that the government might need to collect the fee from all travelers and offer refunds to Thai nationals through an application. Alternatively, the fee could be levied through the TDAC system, which all foreign visitors must complete upon arrival. The final fee amount will primarily depend on projected insurance costs and private hospital treatment expenses, as unpaid medical bills by foreign visitors annually cost Thai hospitals approximately 2.5 billion baht.

The ministry is set to discuss insurance premiums with the Thai General Insurance Association in the next phase. Meanwhile, 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 specific allocation for major infrastructure projects. Authorities should evaluate the burden of incidents involving foreign tourists on hospitals and consider whether the policy would cover events like floods, construction mishaps, or unlicensed motorcycle accidents.

As for the visa changes, authorities are determining the timeline to end the 60-day visa exemptions and revert to 30-day and 15-day allowances, similar to the 2024 arrangements. Surasak stated that the Ministry of Foreign Affairs needs to communicate effectively with other countries’ foreign ministries. The Ministry of Tourism and Sports plans to propose adjustments for certain countries, noting that India, a significant market for Thailand, offers only visas on arrival. A 15-day visa exemption is favored for Indian tourists. Moreover, the Tourism Authority of Thailand has been asked to reassess its 2026 goals and strategy due to potential impacts from the ongoing US-Iran conflict, which might affect the target of 33 million foreign arrivals. Surasak remains optimistic that a shorter visa exemption period will not deter tourists, as their average stay is typically nine days.

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