Thai Hotels Association opposes proposed 1,000-baht departure tax

The Thai Hotels Association (THA) has formally opposed a proposed 1,000-baht departure tax on international air passengers, warning that stacked travel charges would weaken Thailand’s price position just as hotels head into a high season it expects to be flat. THA president Thienprasit Chaiyapatranun set out the position on Friday 9 October 2026, and the association has written to the director-general of the Revenue Department challenging the principle of the bill.

What is proposed

The Revenue Department is consulting on a draft Departure Tax Act. As reported by Khaosod English and The Thaiger, the tax would apply to travellers of all nationalities leaving Thailand, starting with air departures at 1,000 baht per person. The draft law permits a maximum rate of 5,000 baht. Land and sea departures would be exempt at first. The public consultation runs from 30 September to 29 October 2026. The measure has not been approved and no start date has been given.

It would sit on top of two other charges. Airports of Thailand raised its international passenger service charge from 730 baht to 1,120 baht on 20 June 2026 at six major airports, including Suvarnabhumi, Don Mueang and Phuket. That is the only one of the three currently collected. The government is also considering a 450-baht fee on foreign tourists arriving by air, with collection targeted for 2027.

The hotel association’s sums

The THA adds the three together to reach 2,570 baht per foreign visitor per trip. For a family of four that is about 10,280 baht before accommodation, domestic transport or other spending.

Its objections go beyond the headline cost. The THA argues the charge would make Thailand less competitive against destinations such as Vietnam and Hong Kong. It also warns that lower outbound demand from Thai residents could lead airlines to cut frequencies or delay new routes, which would reduce connections and raise fares for inbound visitors too.

The association also questioned the plan to direct an estimated 8 to 10 billion baht of annual fee revenue to public health. The Ministry of Public Health has cited unpaid medical bills by foreign nationals of about 7 billion baht a year. The THA says the three nationalities most often cited, from Myanmar, Cambodia and Laos, are largely migrant workers and not short-stay tourists, and that the government has not explained how the money would be managed or what insurance cover travellers would receive.

The association made three requests to the Revenue Department and Finance Ministry. First, reconsider the proposal and halt the draft Act in its current form. Second, if the government proceeds, publish a detailed impact assessment and transparent revenue forecasts beforehand. Third, look at ways to lighten the burden, including who pays, the starting rate and the maximum charge.

Hotels are not alone. The Association of Thai Travel Agents has agreed to file its own objection, The Thaiger reported on 9 October. Finance Minister Ekniti Nitithanprapas has defended the idea, saying it could encourage Thais to holiday at home and keep tourism spending in the country.

A flat high season

Mr Thienprasit said fourth-quarter tourism should be broadly flat year on year. Long-haul markets may do better and short-haul markets are likely to lag, with ASEAN visitors down about 20%, a fall the report links partly to the lingering effect of floods. Advance bookings are relatively encouraging for four-star and five-star hotels, he said, but lower-rated properties, which make up much of national supply, have not recovered strongly. Domestic travel has slowed as households pay for flood repairs.

He said it is probably too late for a major stimulus campaign before the high season. The reports contain no occupancy or rate figures.

THD’s reading

• THD analysis, for owners: the split in forward bookings matters more than the tax. Upper-tier hotels are filling while midscale and economy stock lags, so asset plans for lower-rated properties should not assume a volume-led recovery this season.
• THD analysis, for operators: a fixed per-head charge weighs most on short-haul, price-sensitive, short-stay guests, the segment already down about 20%. Expect pressure to absorb it through rate in ASEAN source markets.
• THD analysis, for revenue managers: nothing changes before 29 October and no start date exists. Model the charge as a scenario for 2027 contracting, not as a current cost.
• THD analysis, for the region: Vietnam and Hong Kong are the comparators the THA itself names. Competing destinations will use total trip cost in their trade marketing if the bill passes.