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Thailand plans to charge foreign visitors arriving by air a 450-baht tourism fee, starting in the first quarter of next year. Part of the money would fund travel insurance for foreign visitors. Tourism operators say the plan is unfair to genuine travellers, and they want the fee spent mainly on tourism development. The details are not final and the spending split is still being argued over.
What has been announced
The Tourism and Sports Ministry announced this week that it will charge a 450-baht tourism fee to foreign visitors arriving by air. The start is planned for the first quarter of next year, after an online public consultation with public and private stakeholders.
The government plans to use part of the fee to fund travel insurance for all foreign visitors. In the first phase as proposed, only air arrivals would be covered.
Why the tourism industry is pushing back
Tourism operators object to the insurance idea. Their argument is that unpaid medical bills in the past were mostly run up by foreign workers, not tourists, so the scheme is unfair to genuine travellers.
The Public Health Ministry estimates the government carries about 7 billion baht in unpaid medical bills from foreigners. Data for fiscal 2024 from 32 public hospitals showed the following shares of all foreign inpatients, by nationality:
| Nationality | Share of foreign inpatients |
|---|---|
| Myanmar | 44.4% |
| Cambodia | 21% |
| Laos | 14.3% |
The industry also wants all modes of transport included, not just air.
What operators want instead
Industry proposals for the fund:
- About 20% should go to immediate help for tourists hit by unforeseen events, crises or natural disasters. The government would set aside a budget for this.
- The remaining 80% should go to tourism development: infrastructure, environmental improvements, workforce training and digital transformation programmes.
Adith Chairattanon, honorary secretary-general of the Association of Thai Travel Agents (Atta), said operators are worried about unclear budget allocation for insurance and tourism development. He said: "I believe tourists would prefer their fee payments to be used for tourism-related improvements that enhance their travel experience." He added that using most of the fee to cover medical bills through insurance "might be questionable or inappropriate" if the fund is meant for tourists.
Atta also points out that existing tour business rules already require tour operators to buy insurance for travellers in organised groups. In its view, this makes the proposed scheme redundant. Its other concerns are how the fund would be managed efficiently and transparently, and which practical indicators would measure its success. Atta has asked the ministry to clarify the fund's objectives.
The hotel association's view
Thienprasit Chaiyapatranun, president of the Thai Hotels Association, said: "The government is fastening the first button incorrectly." His points:
- The fund should mainly go to tourism development, such as upgrading infrastructure.
- Insurance should be mandatory for foreign arrivals by every mode of transport, not just air.
- Insurance should cover the whole stay, similar to the Covid-19 era requirement.
- Airports could have a sales counter for travellers who haven't bought cover.
- In principle, insurance is each traveller's own responsibility, and most foreign visitors already buy cover before coming.
What this means for visitors
- If you arrive by air, expect a 450-baht fee from the first quarter of next year. It is not yet final, and how it is spent is still disputed.
- The fee may include or fund insurance cover. Details are unclear, and operators are pushing the ministry to rethink it.
- Arrivals by land or sea are not covered in the first phase as proposed.
- If you already carry your own travel insurance, you may find the insurance part redundant.
- One possible outcome is mandatory insurance for everyone, with an airport sales counter for those without it.
What to watch
Two questions remain open: whether the fee starts on schedule, and what the final insurance rules will be. We will need to check again once more is announced.
Information sourced from Bangkok Post.