Thailand travel trade warns exit tax could impact aviation sector

Thailand’s travel trade is voicing opposition to a proposed 1,000 baht (US$31) exit tax for Thai nationals, warning that additional levies could strain the aviation sector.

Proposed by tourism and sports minister Surasak Phancharoenworakul under a 1983 act, the government could enact the fee to fund domestic tourism campaigns.

Concerns grow in Thailand’s travel sector over a proposed exit tax that could raise costs for outbound passengers; Suvarnabhumi Airport, pictured

Adith Chairattananon, honorary secretary-general of the Association of Thai Travel Agents (ATTA), representing trade entrepreneurs who recently met the minister, questioned the timing and rationale.

“With the recent Passenger Service Charge hike to over 1,200 baht, alongside a planned 300 baht tourism fee, this exit tax would push additional traveller costs to around 2,500 baht. This will inflict a severe psychological impact on our market base, particularly budget-conscious, shorthaul leisure travellers,” Adith warned.

Beyond individual costs, the trade said outbound travel is important for workforce development. They added that reducing outbound demand could affect the wider aviation sector.

“If we artificially shrink outbound demand, airlines – which are already burdened by operational costs – will be forced to further cut international routes. Consequently, this reduction in flight capacity will directly and negatively impact Thailand’s inbound tourism market as well,” Adith cautioned.

On implementation, rather than airline-integrated collection, the focus on Thai nationals may require a different approach.

“As the minister indicated this fee will exclusively target Thai tourists rather than foreigners, we anticipate a localised collection mechanism. This could resemble the legacy system where travellers purchased an airport tax coupon to submit at immigration,” Adith noted.

Thailand’s opposition party has also expressed disagreement with the measure, reflecting broader concerns over its potential impact.

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