Thai Hotels Association opposes proposed B1,000 air departure tax
The Thai Hotels Association says the proposed tax would raise travel costs, including for passengers using Phuket airport, and is calling for an impact study before the bill advances.
The Thai Hotels Association (THA) has formally opposed a proposed B1,000 tax on every air departure, warning that the measure could make Thailand less competitive and increase costs for visitors using airports including Phuket.
THA president Thienprasit Chaiyapatranun said the association sent a letter to the Revenue Department’s director-general on 8 October, objecting to the principle of the draft Departure Tax Act. Public consultation opened on 30 September and is due to run until 29 October.
Under the proposal, passengers of every nationality would pay B1,000 for each air departure during the first phase. The draft legislation sets a legal ceiling of B5,000. Land and sea departures would initially be exempt. The tax has not been approved and is not currently being collected.
The association said the proposed charge could bring the total cost of selected fees for a foreign visitor to B2,570. That calculation includes the existing B1,120 international passenger service charge collected by Airports of Thailand at six airports, including Phuket, plus a proposed B450 foreign tourist fee and the proposed B1,000 departure tax.
THA said only the passenger service charge is currently in force. If all three charges applied, a family of four would pay B10,280 before accommodation, transport and other spending.
The association said the additional cost could reduce demand, particularly among budget and short-haul visitors, and could affect airlines if fewer people travelled in both directions. It also said the government should compare any possible tax revenue with potential losses in visitor arrivals, hotel income, jobs and other tax receipts.
THA has asked the Revenue Department and the Finance Ministry to withdraw the bill in its current form or publish a full impact assessment covering travellers, airlines, hotels and the wider economy before proceeding. The association also raised the possibility of a public vote or referendum.
The proposal has faced opposition from travel agents. Finance Minister Ekniti Nitithanprapas has defended it on the grounds that higher outbound travel costs could encourage more Thais to holiday domestically, but the THA said that position should be tested through an impact study.
