The Thai Hotels Association (THA) has formally voiced its opposition to a proposed air departure tax applicable to all nationalities, cautioning that such a measure could escalate travel expenses and diminish demand for air travel to Thailand. THA president Thienprasit Chaiyapatranun stated on October 9 that the association had submitted a letter to the director-general of the Revenue Department, expressing its objection to the draft Departure Tax Act. The proposal initially outlines a 1,000-baht tax on air passengers of all nationalities departing Thailand, with the legislation permitting a maximum charge of 5,000 baht per departure.
The association contended that this tax would add to the existing costs incurred by travelers and could compromise Thailand’s competitive standing against other regional destinations. THA calculated that a foreign traveler might ultimately face combined taxes and fees amounting to 2,570 baht per trip if all proposed measures are implemented. This figure comprises the 1,120-baht departure passenger service charge, which has been in effect since June 20, a proposed 450-baht foreign tourist fee, and the proposed 1,000-baht departure tax. The association emphasized that currently, only the passenger service charge is being collected, while the tourist fee and departure tax remain proposals under consideration. If all three were to be imposed, THA indicated that a family of four could incur a combined cost of 10,280 baht before accounting for accommodation, transportation, and other expenses within Thailand. Travelers staying in hotels in certain areas might also be subject to provincial administrative organization fees.
The association also expressed concerns regarding the potential impact on airline demand. It argued that international travel operates in both directions, implying that a reduction in outbound travel by Thais could lead to fewer passengers on certain routes. For routes with weaker demand, airlines might respond by reducing flight frequencies or postponing the introduction of new services, thereby potentially decreasing the number of available seats for inbound travelers to Thailand. THA suggested this could result in foreign visitors facing fewer flight options or higher fares, consequently affecting hotel revenue and overall spending within the tourism sector.
Furthermore, the association pointed out that the timing of the proposed tax is unfavorable, given that tourism is currently susceptible to economic uncertainty, international conflicts, and rising travel costs. It asserted that an additional 1,000-baht charge could disproportionately affect short-haul markets and budget-conscious travelers, who are more likely to opt for competing destinations with lower overall expenses. THA urged the government to evaluate the proposal beyond its potential tax revenue, considering its possible effects on passenger numbers, airline route viability, tourism income, employment, and other tax revenues generated across the sector.
The association requested that the Revenue Department and the Ministry of Finance reconsider and withdraw the proposal in its current form. Should the government decide to proceed, THA called for authorities to publish impact studies and revenue projections that encompass Thai and foreign travelers, airlines, hotels, and the broader economy before the bill advances. It also advocated for alternative solutions that would impose less additional cost on travelers, including modifications to who would be liable for the tax, the proposed rate, and the maximum charge.