Planning a Thai Vacation? Why Travel Agents are Slamming the New B1,000 Exit Tax

Southeast Asia’s tourism sector is being jolted this morning. In an effort to boost the Thai economy, the country’s government has proposed a new tax that has the tourism industry up in arms. The Thailand departure levy, a 1,000 Baht fee on all tourists leaving Thailand, has sparked outrage among tourism experts who worry it will undermine the nation’s recovery from COVID-19.

The Economics Behind the Thailand Departure Levy

Recently, the Royal Thai Government announced that it plans to introduce the tax to support tourism development and environmental preservation initiatives. But the timing has been condemned by locals as “disastrous”. Current proposals for an outbound travel tax stipulate that everyone leaving the country by air would pay a 1,000 Baht tax, with 500 Baht charged to those leaving by land or sea.

While the government claims the Thailand exit fee is required to pay for infrastructure, the Thai Travel Agents Association (TTAA) has said the tax is too high. The 4,000 Baht levy on a family of four is a substantial amount to add to the cost of a holiday, and may force cost-sensitive tourists to consider alternative destinations, such as Vietnam or Malaysia. 

Travel Agents Voice Their Concerns

Travel agency owners in Bangkok and Phuket are expressing alarm at the outcry from overseas customers. The main complaint is the lack of detail paid to the money’s use. 

Impact on Regional Connectivity

The outbound travel tax could greatly affect the low-cost carrier (LCC) industry, according to travel experts. The 1,000 Baht levy may be a significant deterrent for travellers who book regular flights between ASEAN nations for business or leisure (weekend trips) if the levy is viewed in relation to the ticket price. This may result in a drop in regional air travel, according to Aviation Week. 

Discouraging Longer Stays

And there is concern that the Thailand exit tax is seen as an “unwelcome sign” to international travellers. Having paid thousands of dollars in international flights, being charged an exit fee at the airport can be a sour taste for the “Land of Smiles”. The Tourism Authority of Thailand (TAT) has always been about hospitality, and agents fear this move runs counter to that brand image. 

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Comparing Thailand to Global Standards

However, Thailand is not alone in contemplating such a fee, but the amount being proposed is much higher than in the region. For example, the “Sayonara Tax” in Japan is around 1,000 Yen (or 240 Baht), and the Thai fee would be almost four times that amount.

When considering the legal implications of the tax, industry experts cite the International Air Transport Association (IATA) guidelines, which advocate for governments to avoid excessive passenger taxes for the sake of the aviation industry. 

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