Thailand Weighs 1,000 Baht Departure Tax as Tourism Industry Challenges New Travel Costs

Two proposed charges put travel costs under scrutiny

Thailand is considering a 1,000 baht tax on people leaving the country by air while separately preparing a proposed 450 baht entry fee for foreign tourists. Together, the measures could add 1,450 baht to an eligible visitor's trip, but the Finance Ministry is examining whether a single charge could replace overlapping payments.

The Revenue Department's public consultation notice sets September 30 to October 29, 2026, as the period for comments on the proposed Departure Tax Act. It identifies a major legal change: the new framework would cover travellers of every nationality, extending beyond the Thai citizens and foreign residents covered by the earlier legislation.

Neither new charge has been introduced. The departure proposal requires legislation and a ministerial regulation setting the rate. Tourism and Sports Minister Surasak Phancharoenworakul has identified the first quarter of 2027 as the target for the entry fee, subject to Cabinet approval and legal procedures. No final starting date has been confirmed for either measure.

The debate follows the earlier departure tax proposal and comes during a weaker tourism recovery. The Ministry of Tourism and Sports recorded 23.94 million foreign visitors through October 10, down 4.04% from the same period in 2025.

For travellers, the immediate task is to separate three amounts: the proposed departure tax, the proposed entry fee and the airport passenger service charge already included in relevant international tickets. For businesses, the dispute centres on whether the government's new revenue would outweigh spending lost if fewer people travel.

Who would pay the departure tax?

The proposed initial departure tax is 1,000 baht each time an eligible passenger leaves Thailand by air. Thai citizens and foreign travellers would both be covered. Departures by land and water would initially be exempt.

The draft legislation sets a maximum of 5,000 baht per departure, with the actual rate determined through a ministerial regulation. Finance Ministry permanent secretary Lavaron Sangsnit supports starting at 1,000 baht. The higher figure would be the legal limit available for future rate decisions.

Lavaron explained the ministry's preferred rate and collection method by referring to an earlier system in which passengers obtained payment slips from machines:

"The Finance Ministry believes a charge of 1,000 baht would be appropriate because, more than 20 years ago, we used to charge 500 baht. Travellers would obtain a slip from a machine, and when immigration officers asked to see their passports, they would tear off the slip. But today, if we are going to charge everyone, collecting it through airline tickets, as with VAT, might be easier," Lavaron said.

Airlines or ticket agents would collect the proposed tax together with the fare before departure. Travellers whose journeys involve no normal ticket purchase or fare payment would follow procedures set by the Revenue Department's director general.

Exemptions and protection for existing tickets

Children aged two or younger, qualifying transit passengers, certain royal and official visitors, and specified government journeys are among the proposed exemptions. Transit eligibility would depend on conditions such as remaining within designated areas. Transport crew travelling on duty without paying a fare would also fall outside the proposed charge.

The draft would take effect after 180 days have passed following publication in the Royal Gazette, Thailand's official record for laws and government announcements. Tickets purchased before the effective date would be protected, including tickets for departures after that date.

Proposed enforcement measures include a penalty of twice the unpaid tax and a surcharge of 1.5% for each month or part of a month. Those provisions, like the exemptions and ticket protections, remain part of the proposed framework.

Would visitors pay both an entry and an exit fee?

The Tourism and Sports Ministry's separate proposal would charge foreign visitors 450 baht on arrival. Collection would begin with air passengers, while land and sea arrivals would be deferred for about a year to allow work on border systems and exemptions.

The revised amount replaces an earlier proposal of 300 baht for air arrivals and 150 baht for land or sea arrivals. The ministry now favours a uniform rate, introduced in stages. The entry plan also envisages a preparation period of 180 days after the necessary Royal Gazette announcement.

A consultation held from August 24 to September 28 attracted 5,954 participants. Among respondents, 80.5% supported an entry fee and 78.3% supported the 450 baht amount. About 36% preferred collection through airline tickets.

The ministry estimates annual entry fee revenue of about 8 billion baht. Intended uses include visitor insurance, safety, tourism infrastructure, improvements to attractions and restoration of natural resources. The government says it currently bears about 7 billion baht a year in medical costs for foreign tourists.

Lavaron has said officials are considering collecting on only one leg of a journey, potentially using departure tax revenue from foreign visitors for insurance or emergency medical assistance. That approach could replace the separate inbound fee. Whether visitors ultimately face one new payment or two remains under consideration.

How much could a trip cost?

A foreign visitor paying both proposed charges would face 1,450 baht in new costs. Using the approximate rupee conversions accompanying the proposals, that is about Rs 4,112, comprising Rs 2,836 for departure and Rs 1,276 for entry. Exchange rates would affect the amount paid in another currency.

Airports of Thailand already charges 1,120 baht for international passenger services at its six airports, following an increase from 730 baht in June 2026. That existing charge is included in relevant air tickets.

• Proposed air departure tax: 1,000 baht per eligible departure.
• Proposed foreign tourist entry fee: 450 baht per eligible arrival.
• Existing international passenger service charge at relevant airports: 1,120 baht.
• Combined amount if all three apply: 2,570 baht per eligible traveller.

For four travellers who all qualify to pay, the two proposed measures would add 5,800 baht. Including the existing airport charge, their combined total would be 10,280 baht. The final family bill would depend on eligibility, exemptions and whether the government combines the proposals.

Why the Finance Ministry wants the revenue

Lavaron argues that people who can afford overseas holidays can contribute more to public finances. He says the proceeds could support domestic tourism and reduce pressure on existing government budget resources.

The Revenue Department describes the proposal's objectives as better management of resources within fiscal discipline and greater flexibility when emergencies arise. Fiscal discipline means keeping public spending and revenue under control so the government can meet its obligations. Lavaron has also linked that goal to assessments by credit rating agencies.

Departure tax receipts would enter central government accounts before being allocated through the normal budget process. Spending on domestic tourism would therefore depend on subsequent budget decisions, rather than money automatically flowing to a dedicated tourism fund.

Finance Ministry spokesman Winij Wisetsuwanphum has also presented the tax as a way to finance tourism development and encourage Thai citizens to holiday within the country. The Tourism Council of Thailand argues that the proposed coverage reaches much further than holidaymakers, including students studying overseas, people travelling for work and small business operators.

Industry forecasts losses larger than tax receipts

The proposed 1,000 baht rate could raise about 45.9 billion baht annually, using 2025 travel figures of 32.9 million foreign tourists and roughly 13 million outbound Thai travellers. The estimate assumes a large base of taxable departures; exemptions, passenger behaviour and the final collection rules would affect receipts.

Adith Chairattananon, honorary secretary general of the Association of Thai Travel Agents, estimates potential annual tourism spending losses of 50 billion to 150 billion baht. His argument uses average spending of 50,000 baht per visitor: one million fewer visitors would mean approximately 50 billion baht less spent in Thailand.

Adith cites a 2023 Journal of Travel Research study estimating that a 10% increase in taxes related to tourism activities would reduce tourist demand by 4.5%. He also cites Naresuan University researchers who calculated that 2,570 baht equals 5.14% of average spending of 50,000 baht per trip.

The 2,570 baht calculation includes the existing airport charge. The two new proposals alone total 1,450 baht, or 2.9% of that 50,000 baht spending figure. This gives travellers and policymakers a clearer measure of the additional cost being considered.

The industry's loss estimates concern money spent across hotels, restaurants, transport, shopping and other services. The government's 45.9 billion baht estimate concerns tax receipts. The policy decision involves both: how much the treasury could collect and how much business income might fall if travel demand weakens.

Airlines warn about routes, not just ticket prices

Tassapon Bijleveld, executive chairman of Asia Aviation, which operates Thai AirAsia, says the Association of Airlines of Thailand, representing seven airlines, opposes the departure tax. He warns that higher costs could weaken Thailand's position against destinations such as Vietnam.

International routes depend on passengers travelling in both directions. If fewer Thai residents fly abroad, an airline could lose revenue on a route that also brings foreign visitors into Thailand. Carriers could then reconsider flight frequency or destinations, affecting the seats available for incoming tourists.

No specific route reductions have been announced in connection with the proposal. Airlines would make those decisions according to demand, operating costs and the final policy.

Tourism Council of Thailand president Chai Arunanondchai says the council has formally opposed the tax in letters to the finance minister, tourism and sports minister, and Revenue Department director general. It warns that families, overseas students and people making necessary work journeys could postpone trips or travel less frequently.

Tourism organisations planned discussions with the finance minister, potentially after the 2026 IMF and World Bank Annual Meetings in Bangkok. Travel agents have also called for the departure proposal to be delayed.

A weaker recovery sharpens the dispute

The Economics Tourism and Sports Division's week 41 figures put foreign tourism receipts at 1.165 trillion baht through October 10, 2026, down 2.47% from a year earlier. Arrivals fell 7.49% during October 4 to 10 compared with the preceding week, partly reflecting the end of China's Golden Week and other regional holidays.

China remained the largest source market with 4,078,133 visitors, followed by Malaysia with 3,039,825 and India with 1,794,723. India's third place makes the proposed costs relevant to a substantial group of travellers, including families comparing regional destinations.

Tourism Authority of Thailand governor Thapanee Kiatphaibool set a target of 36.7 million international visitors in February; another target cited in the policy debate is approximately 33 million. Kasikorn Research Centre forecasts 31.36 million for 2026, compared with almost 40 million arrivals in 2019.

Kasikorn forecasts foreign tourism receipts of 1.54 trillion baht for 2026, against 1.9 trillion baht in 2019. The difference is 360 billion baht, or about 19% of the earlier figure, before accounting for changes in prices.

Domestic tourism has been stronger. Through October 10, Thai residents made 157.80 million domestic trips, up 2.38%, generating 925.782 billion baht, up 3.09%. That growth supports the government's interest in domestic travel, while the weaker international figures explain why businesses are resisting additional visitor costs.

The dates travellers should watch

The proposals involve separate approval processes. The departure consultation deadline is a stage in preparing legislation, while the entry fee's target period depends on Cabinet and regulatory decisions.

• December 28, 1983: Thailand began collecting an earlier departure tax from Thai citizens and foreign residents.
• May 1, 1986: Land and water departures became exempt under the earlier system.
• July 1, 1991: Air departures also became exempt from the earlier tax.
• August 24 to September 28, 2026: Consultation took place on the proposed tourist entry fee.
• September 30 to October 29, 2026: The Revenue Department scheduled consultation on the new departure legislation.
• First quarter of 2027: The Tourism and Sports Ministry's target period for starting the entry fee, subject to approvals.

Travellers with existing bookings have no new departure or entry levy to pay under these proposals at present. The draft departure framework protects tickets purchased before its effective date. Future passengers should check official announcements for the approved amount, collection arrangements and eligibility before budgeting for a new charge.

Key Points

• Thailand proposes a 1,000 baht air departure tax covering Thai and foreign travellers, with specified exemptions.
• The draft sets a 5,000 baht legal ceiling and provides for collection through fares.
• A separate 450 baht foreign tourist entry fee is targeted for early 2027, subject to approval.
• Officials are considering combining the measures to avoid charging on both arrival and departure.
• Both proposals together would add 1,450 baht per eligible traveller, before the existing airport charge.
• Tourism groups oppose the departure tax, warning of weaker demand, business income and airline connections.
• Neither proposed levy is currently payable, and the draft departure law protects tickets purchased before its effective date.