The Thai Hotels Association (THA) has formally opposed a proposed air departure tax for all nationalities, warning that the measure could increase travel costs and weaken demand for air travel to Thailand.
THA president Thienprasit Chaiyapatranun said on October 9 that the association had sent a letter to the Revenue Department director-general objecting to the draft Departure Tax Act.
The proposal would initially impose a 1,000-baht tax on air passengers of all nationalities leaving Thailand, with the law allowing a maximum charge of 5,000 baht per departure.
The association argued that the tax would add to costs already faced by travellers and could affect Thailand’s competitiveness against other destinations in the region.
THA calculated that a foreign traveller could eventually face combined taxes and fees of 2,570 baht per trip if all proposed measures take effect.
That figure consists of the 1,120-baht departure passenger service charge, which has been applied since June 20, a proposed 450-baht foreign tourist fee and the proposed 1,000-baht departure tax.
The association stressed that only the passenger service charge is currently being collected. The tourist fee and departure tax remain proposals under consideration.
If all three were imposed, THA said a family of four could face a combined cost of 10,280 baht before accommodation, transport and other expenses in Thailand.
Travellers staying in hotels in some areas may also face provincial administrative organisation fees.
The association also raised concerns about the effect on airline demand. It argued that international travel works in both directions, meaning fewer Thais travelling overseas could reduce passenger numbers on some routes.
On routes with weaker demand, airlines could respond by cutting flight frequencies or delaying new services, potentially reducing the number of seats available to travellers coming to Thailand.
THA said this could leave foreign visitors with fewer flight options or higher fares and could affect hotel revenue and spending elsewhere in the tourism sector.
The association also argued that the timing of the proposed tax was unfavourable because tourism remains exposed to economic uncertainty, international conflicts and higher travel costs.
It said another 1,000-baht charge could have a greater effect on short-haul markets and budget-conscious travellers, who may be more likely to choose competing destinations with lower overall costs.
THA urged the government to assess the proposal beyond the tax revenue it could generate, including possible effects on passenger numbers, airline route viability, tourism income, employment and other tax revenue generated across the sector.
The association asked the Revenue Department and Finance Ministry to reconsider and end the proposal in its current form.
If the government decides to proceed, THA wants authorities to publish impact studies and revenue projections covering Thai and foreign travellers, airlines, hotels and the wider economy before the bill advances.
It also called for alternatives that would place less additional cost on travellers, including changes to who would pay the tax, the proposed rate and the maximum charge.
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