Thailand Consults on New 1,000-Baht Air Departure Tax Proposal

The Thai Revenue Department is currently conducting a public consultation regarding a proposed 1,000-baht departure tax for all passengers leaving the country by air. This initiative, which began in late September 2026, is part of a broader government discussion on tourism funding, which also includes a separate proposal for a 450-baht tourist arrival fee. The government has stated that these funds, if approved, would be earmarked for visitor insurance, safety initiatives, and the development of tourism infrastructure.

However, the proposal has faced significant pushback from the Thai Hotels Association and other industry stakeholders. Critics argue that the cumulative effect of these new charges—potentially reaching 2,570 baht when combined with existing airport service charges—could reduce Thailand's competitiveness as a regional tourism destination. Industry leaders warn that increased costs may dampen demand for both inbound tourism and outbound travel, potentially impacting the entire supply chain, including airlines, tour operators, and local businesses. The government is currently tasked with finalizing transparent collection and spending rules before the proposal can be submitted to the Cabinet for a final decision.

All passengers departing Thailand by air, including both international tourists and Thai citizens, are potentially affected by this proposal. The current draft legislation suggests that the tax would initially apply only to air travel, with collection from land and sea border crossings deferred for at least one year.

Makutet expects the Thai government to face continued pressure to balance revenue generation with the need to maintain high visitor volumes. Given the strong opposition from the hospitality sector, it is likely that the final legislation will be heavily amended or delayed to avoid a negative impact on the 2027 tourism season. We anticipate that if the tax is eventually approved, it will be implemented gradually to minimize disruption to the travel industry.