Airlines Push Back on Government's Tourism Fee Collection Plan

The Thai government's plan to collect a tourism fee of at least 300 baht through airlines has encountered strong opposition from the aviation industry, which argues that the method is impractical due to system limitations. Aviation bodies are advocating for the Thailand Digital Arrival Card (TDAC) system as a more viable collection channel. Last month, the Ministry of Tourism and Sports requested airlines to act as intermediaries for collecting the fee on behalf of the government. As the National Tourism Policy Act does not cover the levy from Thai nationals, the ministry proposed that airlines charge a standard fee to all passengers and subsequently reimburse Thai citizens, with the government covering administrative costs. Sheldon Hee, regional vice-president for Asia-Pacific at the International Air Transport Association (IATA), pointed out that collecting a tourism tax through airlines would introduce additional complications. Airlines typically do not require passenger nationality, passport details, or residential addresses during booking, making the collection of such a fee challenging. He also raised concerns about potential impacts on operational efficiency at airports and the difficulty in managing unpaid taxes. Mr. Hee suggested that the TDAC, a digital immigration system mandated for foreign visitors, would be a more practical and efficient option for fee collection. The Airlines Association of Thailand (AAT) and other aviation stakeholders agreed with this assessment during a recent meeting with tourism ministry officials. The AAT highlighted that Thai airlines operate with diverse back-office systems, and integrating the fee with airfares would further complicate implementation, especially with over 100 foreign airlines flying to Thailand. They noted that the TDAC system, administered by the Immigration Bureau, reports directly to the government, making it a more suitable platform than airlines, which operate largely independently. The tourism tax was initially proposed in 2020 but has faced delays due to frequent government changes and technical issues. The majority of the revenue is intended for tourist insurance, with the remainder allocated to maintaining tourist attractions and improving infrastructure. The final fee amount will depend on projected costs for accident insurance and private hospital treatments, as unpaid medical bills by foreign visitors reportedly cost Thai hospitals around 2.5 billion baht annually.