Planning a trip to Thailand? You may have to shell out more. All about proposed tourism tax

Thailand's new tourism minister, Sorawong Thienthong, plans to start collecting 300 baht (around ₹750) as tourism tax, a proposal which was put on hold by the previous Prime Minister Srettha Thavisin-led administration.

According to a Bangkok Post report, the minister has pledged to increase tourism income to at least 3 trillion baht this year.

“I believe the collection of tourism fees benefits the tourism industry since the revenue can be used for the development of infrastructure and attractions, as well as to ensure tourist safety,” said Sorawong, as per the report.

The tourism levy approved by the cabinet in 2022 has yet to be enforced as there is a lack of official endorsement from the Royal Gazette. The plans to introduce it earlier were reportedly shelved due to the opposing views from the private sector.

Sorawong said the ministry needs more time to access the system before moving forward. There is no confirmation from the ministry whether or not collection will begin from the final quarter of the year.

The fee structure has remained the same since it was proposed five years ago, which is 300 baht (nearly ₹750) for air travellers, and 150 baht (nearly ₹378) for land and sea visitors, according to the report.

Thailand generated nearly $22.42 billion in revenues from tourists arriving from India, China, and Malaysia, with India being its largest market, according to a Reuters report.

Who will be exempted from this tourism tax?

There are certain categories of tourists who are not required to pay the fees:

1. Children under two

2. Transit passengers

3. Diplomatic passport holders

4. Individuals with work permits

The global trend of taxing tourists

While Thailand is working on implementing a tourism tax, cities such as Edinburgh, Barcelona, Paris and Venice have similar charges. The rate depends on the location and the accommodation type.

In Barcelona, tourists pay both a regional tax and a city surcharge, which can come up to many euros per night, depending on the location one stays. Similarly, in Paris, the tourist tax is based on the accommodation type and its star rating, so luxury stays gain more tax, according to the report.

In popular destinations in Austria, the charge can be approximately 3.02 per cent of the hotel bill per person. Belgium follows a similar pattern, where visitors pay more tax depending on the size or rating of a hotel or which city the hotel is in.

Bhutan has a high fee structure of $100 per day which aims to support sustainable tourism in the country, intended to preserve the country's natural heritage and environment through limiting the number of visitors.