Tourism Fee Collection via Airlines Faces Hurdles; Digital Card Proposed

The plan to collect a tourism fee of at least 300 baht, which the Thai government intends to implement, is facing significant hurdles due to the infeasibility of collecting it through airlines, according to aviation bodies. They suggest that the Thailand Digital Arrival Card (TDAC) is a more viable alternative. Representatives from the Airlines Association of Thailand (AAT), airports, and regulators met with the Ministry of Tourism and Sports last month. The ministry had requested airlines to act as an intermediary platform for collecting the tourism fee on behalf of the government. However, the National Tourism Policy Act, which governs the levy, does not cover Thai nationals, making it unlawful to collect the fee from them. The ministry had proposed that airlines charge a standard fee to all passengers and subsequently reimburse Thai nationals, with the ministry covering associated administrative costs. Sheldon Hee, regional vice-president for Asia-Pacific at the International Air Transport Association (IATA), stated that collecting a tourism tax through airlines is infeasible and would create additional complications. Typically, passengers are not required to provide their nationality, passport details, or residential address to airlines during the booking process. Airlines only need a passenger's name and destination, Mr. Hee explained. Furthermore, Mr. Hee raised concerns that collecting a tourism fee could compromise operational efficiency at airports. For instance, he questioned what would happen if an airline discovered a passenger subject to the tourism tax had not made the payment. Managing such payments at airports would be difficult, as this is not where payments are typically processed, he said. Mr. Hee proposed that collecting the fee through the TDAC, the digital immigration system that foreign visitors are mandated to complete before entering Thailand, would be a better option. The AAT and aviation stakeholders agreed with this conclusion at the recent meeting. The AAT noted that Thai airlines operate with different back-office systems. For the more than 100 foreign airlines flying to Thailand, embedding the fee with airfares would further complicate implementation for operators. The association added that the TDAC, administered by the Immigration Bureau and reporting directly to the government, offers a more convenient collection method compared to airlines, which are largely independent of the state. While the issue could raise concerns for the International Civil Aviation Organization (ICAO), whose principles advocate for non-discriminatory treatment of all passengers, Mr. Hee acknowledged that every country has the sovereign right to determine its own policies. IATA's role, he said, is to advise on any unintended consequences of such policies and identify more effective alternatives. He noted that introducing an additional fee would likely discourage travel to Thailand, particularly among regional travelers. Mr. Hee expressed concern that Thailand could lose growth potential over time if travel costs become less attractive, especially as the country seeks to restore tourism to pre-pandemic levels. IATA called for greater cooperation between airlines and other aviation stakeholders to promote transparent discussions on taxes and charges, noting that some levies may not be viable for airlines or travel demand, despite their objective of improving aviation infrastructure.