Thailand is considering raising the foreign tourist entry fee beyond the initially proposed 300 baht, according to Tourism and Sports Minister Surasak Phancharoenworakul. This potential increase, first suggested in 2020 but never implemented, is driven by inflation and escalating insurance costs to broaden coverage at private hospitals. The majority of the funds collected from this tourism fee would be allocated to tourist insurance, with the remainder aiding in the maintenance and infrastructure improvement of tourist sites.
The announcement comes shortly after the government declared plans to eliminate 60-day visa exemptions for travelers from 93 countries, addressing concerns over rising illegal activities by foreigners. Surasak emphasized that the ministry is finalizing how to collect the fee without negatively impacting the perception of travelers. Two methods are under consideration: including the fee in airline tickets or using the Thailand Digital Arrival Card (TDAC) system. Airlines have expressed concerns about the feasibility of taxing only foreign passengers, potentially necessitating tax collection from all passengers with a refund option for Thai nationals through an application.
The final fee amount will largely depend on the anticipated costs of accident insurance and treatment at private hospitals, as unpaid medical bills from foreign visitors are costing Thai hospitals approximately 2.5 billion baht annually. The ministry plans to negotiate an appropriate insurance premium with the Thai General Insurance Association in the next phase. Thienprasit Chaiyapatranun, the president of the Thai Hotels Association, has called for clarity on the types of incidents covered by the insurance fund and the exact allocation of funds for major infrastructure projects. Authorities are tasked with determining which incidents involving tourists, such as accidents or natural disasters, would place a burden on hospitals.
In tandem with these developments, authorities are working to finalize the timeline for reducing the visa exemption period from 60 days to 30 or 15 days for 93 countries, reverting to visa-on-arrival arrangements similar to those anticipated in 2024. Surasak noted that the Ministry of Foreign Affairs, responsible for the national visa policy, should coordinate with foreign ministries to communicate these changes effectively. The Ministry of Tourism and Sports is advocating for adjustments to the visa scheme for specific countries, highlighting India as a key market where a 15-day visa exemption could be beneficial.
Additionally, the ministry has tasked the Tourism Authority of Thailand with revising its 2026 goals and strategy due to concerns that ongoing geopolitical tensions, such as the US-Iran conflict, might hinder achieving the target of 33 million foreign arrivals. Despite the shortened visa exemption period, Surasak reassured that this should not impact tourist numbers, as the average stay for most foreign visitors is typically around nine days.