Thailand considers charging citizens $40 for overseas trips to fund domestic travel subsidy scheme

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Data shows Thais make about 10 million overseas trips annually.

Data shows that Thais make about 10 million overseas trips annually.

PHOTO: EPA

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The Thai government is considering reinstating a 1,000 baht (S$40) exit fee for Thai citizens travelling abroad, with the revenue earmarked to support domestic travel subsidy programme Tiew Khon La Krueng.

It is also known as the Half-Half Thai Travel initiative, a government stimulus project that aims to boost domestic tourism and support local businesses.

The Ministry of Tourism and Sports has been holding talks with the Ministry of Finance on bringing back into force the 1983 decree on overseas travel tax, which would allow the state to collect an exit fee from Thai travellers at 1,000 baht per person per trip.

Based on data showing that Thais make about 10 million overseas trips a year, Tourism and Sports Minister Surasak Phancharoenworakul said on April 27 the measure could generate around 10 billion baht annually for the state, and would be used to subsidise 10 million entitlements under the Tiew Khon La Krueng scheme.

He said the funds would be allocated to stimulate domestic tourism and curb capital outflows from overseas travel.

The proposed exit fee would apply only to Thai citizens, not foreign tourists, Mr Surasak said, to avoid concerns over double charging for both entry and exit.

He added that the ministry believes the measure would not materially affect Thais’ decisions to travel abroad.

Mr Surasak said discussions are continuing with the Finance Ministry. As the legal basis already exists, he said the measure could be implemented quickly if approved by the Cabinet.

Thailand previously collected an overseas travel tax of 500 baht before it was later scrapped.

Mr Surasak said that compared with rising airfares, a 1,000 baht fee is likely to have a smaller impact on travel decisions and would serve as a clearly targeted funding source to reinvest in domestic tourism.

“With a programme like this, we can help Thailand’s tourism sector grow sustainably without relying on the state budget,” he said.

“It also allows long-term planning because the operating budget is clear.”

He added that the government is pursuing a separate plan to collect a 300 baht entry fee from foreign tourists – often referred to as a “landing fee” – to support a tourism development fund and insurance coverage.

Meanwhile, Mr Thanapol Cheewarattanaporn, president of the Association of Thai Travel Agents, led a delegation to meet Mr Surasak and raised concerns about the proposed 1,000 baht overseas travel tax.

One key proposal from the group was for the government to delay reinstating the 1,000 baht fee under the 1983 law, arguing that it could affect Thai outbound travel volumes and potentially influence international flight capacity in the future. THE NATION/ASIA NEWS NETWORK

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