Airlines warn proposed B1,000 Thai departure tax could cost tourism up to B150 billion
Industry representatives say Thailand could lose B50 billion to B150 billion in annual tourism revenue if the proposed air departure tax is introduced.
Thailand could lose between B50 billion and B150 billion in annual tourism revenue if it introduces a proposed B1,000 air departure tax, according to estimates cited by the Association of Thai Travel Agents (ATTA).
Adith Chairattananon, the ATTA's honorary secretary-general, said the potential losses would exceed the estimated B45.9 billion the levy could raise. The lower estimate assumes at least 1 million travellers would decide not to visit Thailand because of the additional cost.
Adith said the estimate was based partly on a 2023 study published in the Journal of Travel Research, which found that tourist demand falls by about 5.4% for every 10% increase in tourism-related taxes. He said possible losses from Thailand's three largest source markets — China, India and Malaysia — could total 891,000 arrivals under a 10% decline scenario, or 446,000 arrivals under a 5% decline.
The proposed tax would initially apply to travellers of all nationalities departing Thailand by air. The starting rate would be B1,000, with a legal ceiling of B5,000, while departures by land and sea would initially be exempt. Based on about 32.9 million foreign arrivals and 13 million Thai outbound travellers in 2025, the B1,000 rate is projected to generate about B45.9 billion.
Adith also said foreign visitors could face B2,570 in combined charges, including the existing airport passenger service charge, a proposed B450 entry fee and the departure tax. That amount represents about 5.14% of average tourist spending of B50,000 per trip, he said.
The Airlines Association of Thailand has opposed the proposal, warning that higher travel costs could weaken the country's competitiveness against destinations such as Vietnam. Tassapon Bijleveld, executive chairman of Asia Aviation, which operates Thai AirAsia, said that if the government needs additional revenue, increasing value-added tax would be preferable to placing a further burden on tourism.
The draft remains under consultation until 29 October 2026 and has not been enacted. The Thai Hotels Association and ATTA have formally objected, with the travel agents' group calling for the bill to be delayed indefinitely pending an economic impact assessment.
Finance Ministry officials have defended the proposal, saying it would target people able to travel abroad and could help ease budget pressure while supporting tourism recovery. Industry groups say the assessment should account for potential effects on arrivals, employment and other tax revenue. Adith also warned that reduced demand could affect hospitality employment while Thailand's economy faces an International Monetary Fund forecast of 2.1% growth.
