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Thailand's government has proposed a new tax on foreign visitors to boost tourism revenue, a plan that has drawn concern from hotel operators amid a decline in visitor numbers.
Under the proposal, foreign tourists arriving in Thailand would pay 450 baht, or about $14, per visit. The Thai government opened a 30-day public consultation period on Aug. 24 to gather feedback on the plan, according to Nikkei.
Tourism and Sports Minister Surasak Phancharoenworakul said the fee is not expected to discourage visitors, adding that the revenue collected would go toward developing the tourism sector.
Thailand welcomed approximately 32.9 million foreign visitors in 2025. Had the tax been in effect that year, the government would have collected an estimated 14.8 billion baht, or $450 million, according to government projections.
Officials said the fund would protect tourist destinations, provide insurance coverage for visitors, train tourism workers, and support sector research.
However, Thai Hotels Association President Thienprasit Chaiyapatranun said the proposal's timing is wrong. He said the 450-baht fee may be a small sum for high-spending tourists but could deter younger, budget-conscious travelers.
"This is not the right time to introduce the new tax. It will definitely have a negative impact on foreign tourist arrivals," Chaiyapatranun said, adding that a decline in visitor numbers is likely, though its scale is difficult to predict.
Foreign visitor arrivals to Thailand fell 7% last year, prompting the government and the Tourism Authority of Thailand to promote entertainment and sports events this year to boost arrivals. Despite those efforts, the decline continued, with foreign visitor numbers down about three percent in the first seven months of 2026 compared with the same period last year.
Tourism accounts for about 18% of Thailand's economy. The country's economic growth slowed to 1.9% in the second quarter of 2026, down from 2.8% growth in the previous quarter.
Industry representatives also said it remains unclear how the collected funds will be managed.
Sa-nga Ruangwatthanakul, president of an association representing businesses around Bangkok's backpacker district of Khao San Road, said the new tax could add to the sector's difficulties. He said Thailand's tourism industry has not fully recovered from pandemic losses.
"Khao San Road is already quiet because of the drop in foreign tourists. I think this tax will reduce visitor numbers even further," Sa-nga said.
Sa-nga said hotel occupancy rates in the area fell from around 70% at the start of the year to as low as 50%, adding that rising oil prices and airfares linked to developments in the Middle East could continue to pressure the sector throughout the year.
Some travelers also expressed reservations about the proposed fee. Evie Jones, a 28-year-old Australian teacher, said travelers would comply if the tax becomes law but would prefer not to pay it.
"If it becomes law, we obviously have to comply. But not having the tax would be much better. Cheaper is always better," Jones said.
The public consultation period on the tourism tax is expected to conclude at the end of September. The government will then consider the feedback before submitting the regulation for cabinet approval. If approved, the tax would take effect 180 days after publication in the Royal Gazette, meaning it could take effect in early 2027.
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