Thailand is reviving its proposed 450-baht visitor fee to fund tourism infrastructure, environmental restoration, and foreign visitor insurance, with air-arrival collection expected to begin in 2027 under a revised long-term funding strategy.
Thailand is reviving its long-discussed visitor fee, a measure originally put on hold when the Covid-19 pandemic struck international travel in 2020 as foreign tourist arrivals collapsed and the industry focused on restoring travel demand. The proposal imposes a 450-baht fee—equivalent to approximately S$17 or RM55—on foreign arrivals. Officials frame the policy as a necessary step to secure off-budget revenue for destination renewal and workforce development, shifting the country’s economic strategy away from a strict reliance on visitor volume.
Funding Quality Tourism and Easing Health Budgets
The revenue generated from the levy would be channelled into the Tourism Promotion Fund to support attractions, infrastructure, environmental restoration, research, workforce development, and assistance for local communities. The fund will also finance health protection and insurance coverage for foreign visitors during their stay, replacing reliance on the existing assistance arrangements used to compensate or support visitors following accidents and other incidents.
Tourism and Sports Minister Surasak Phancharoenworakul emphasized that a dedicated financing mechanism is vital for the sector’s future stability, stating that Thailand needs a dedicated fund to finance improvements across the sector.
“The figures clearly show that, without such a fund, Thailand’s tourism industry is approaching saturation or could begin to decline,” he said. “Relying on a state budget that becomes more limited each year would create greater constraints on competitiveness. The government therefore intends to secure off-budget funding to drive and upgrade tourism in every area.”
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Surasak Phancharoenworakul, Tourism and Sports Minister
Minister Surasak added that relying exclusively on a tightening state budget would restrict the country’s competitiveness. Proponents of the policy note that the insurance component could also ease pressure on the public health budget. The state currently covers an average of 300-400 million baht a year in medical expenses incurred by foreign nationals when hospitals are unable to recover the full amount owed. According to ministry data, more than 40 countries impose taxes or fees on visitors in various forms, with revenue used to develop destinations and restore tourism resources. The policy has been linked to the Polluter Pays Principle, under which people using resources share responsibility for conserving them and restoring those that have deteriorated.
Economic Pressures and Industry Estimates
The push for sustainable funding follows a volatile period for international travel. Plans to introduce the fee were put on hold when the Covid-19 crisis struck in 2020. After international arrivals eventually recovered to about 35 million in 2024, Thailand encountered further difficulties in 2025, including the effects of an earthquake and concerns over tourist safety early in the year. Those problems particularly affected confidence in sensitive markets such as China, although the country still received nearly 33 million foreign visitors.
In 2026, geopolitical tensions and the conflict involving Iran have weakened the outlook for long-haul travel from the Middle East and Europe. Confidence among Chinese travellers has gradually improved, however, and the Ministry of Tourism and Sports expects total foreign arrivals in 2026 to remain close to the 2025 level. This levelling-off of visitor numbers has strengthened the government’s argument that the next stage of tourism development should focus on visitor quality, infrastructure, environmental management and the distribution of tourism benefits rather than arrivals alone.
The Association of Thai Travel Agents (ATTA) has estimated that the fee could generate about 10 billion baht in off-budget revenue for the tourism industry.
Operational Timeline and Border Logistics
Under the draft announcement, each foreign visitor would pay 450 baht. A single payment would allow the visitor to enter and leave Thailand several times without paying again during a 30-day period and provide active insurance coverage during that period. Natthriya Thaweevong, Permanent Secretary for Tourism and Sports, said the government expected air-arrival collection to begin in 2027.
The measure will take effect 180 days after publication in the Royal Gazette. Collection via land and sea routes will follow a longer preparation period of approximately 360 days. Natthriya noted that these entry channels require careful planning to manage congestion at busy border checkpoints, specifically highlighting the Sadao checkpoint in Songkhla province, which handles large numbers of Malaysian tourists.
