Southeast Asia's second largest economy to impose $9 travel tax from next year

The Tourism and Sports Ministry is currently finalizing the details of the tax collection plan and would submit it to the cabinet for approval in January, its Minister Sorawong Thienthong said as reported by the Bangkok Post.

The tax will initially apply to air travelers, who make up 70% of all foreign arrivals in Thailand.

Proceeds from the tax will be allocated to purchasing insurance for foreign visitors, with the remaining channeled into a tourism development fund that would be used to enhance tourist attractions, including building facilities for the disabled and upgrading public toilets, Nation Thailand reported.

The payment process will resemble South Korea's K-ETA registration system, which requires travelers to complete online registration and payment prior to entry.

Thailand's government projects that foreign tourist arrivals will reach 35.99 million by the end of this year, marking a 28% increase from last year. Tourism revenue is expected to reach 1.8 trillion baht, reflecting a 32% rise compared to the previous year.

So far this year, Thailand received nearly 27 million foreign arrivals.

In 2019, before the Covid-19 pandemic, Thailand recorded a historic 39.9 million foreign visitors, generating 1.91 trillion baht ($55.8 billion) in revenue, underscoring the vital role of tourism in the country’s economy.

Last year Indonesia's resort haven of Bali also imposed a 150,000 rupiah ($10) tax on arriving tourists to preserve the culture of the "Island of Gods."