Thailand delays tourism fee as visitor numbers fall short
Initially expected to take effect in 2025, the 300-baht (€7.50) 'kha yeap pan din' ('stepping onto Thai soil') fee will now be pushed back to the middle of 2026, according to the Ministry of Tourism and Sports.
Approved in principle by Thailand's cabinet in February 2023, the fee would apply to all foreign visitors arriving by air, with a reduced rate of 150 baht (€3.75) for those arriving by land or sea. The funds would go toward projects that improve tourism infrastructure and provide insurance coverage for travellers.
But Assistant Tourism Minister Chakrapol Tangsutthitham confirmed this week that the government is holding off until demand rebounds.
Why is Thailand pressing pause?
The delay comes as the economy has stagnated and tourism numbers have fallen short of targets.
At the start of July, tourist arrivals totalled about 17 million, down 5 per cent from the same period in 2024. The slowdown has raised concerns in the tourism sector, which contributes about 20 per cent of the country's GDP.
Analysts suggest that economic pressures in key markets such as China may be affecting demand. The baht's strength and rising airfare costs have also made the country a more expensive destination to visit.
Looking ahead, the US slapping tariffs on Thailand could have a ripple effect on economies, leading to reduced spending on international trips.
Meanwhile, Thailand upgrades its tourism systems
The fee might be on hold, but Thailand continues to eye up ways to improve its all-important tourism industry.
Earlier this year, the country rolled out a newdigital entry system, replacing tedious paperwork with a streamlined online process for pre-arrival registration. Thai authorities say the digital form will boost data collection and improve processing at airports and borders, all while supporting a more seamless travel experience.
While its bureaucracy has never been a selling point, Thailand has plenty of other perks that have turned it into one of the world's most enduring travel destinations.
From the verdant mountains and understated diversity of Chiang Mai to the white-sand beaches of island hotspots such as Koh Samui and Phuket, the country draws nearly 40 million annually with its natural beauty, affordable luxury and welcoming culture.
With its legendary nightlife and combination of street food and Michelin star power, Bangkok continues to lure luxury travellers and digital nomads. Wellness tourism is also growing nationwide, thanks to newer and sleeker eco-resorts, yoga retreats and spas. Thailand's starring role in The White Lotus has only added to the buzz.
Fee or no fee, the country is still betting that its seductive soft power will do the heavy lifting and keep travellers coming back for more.
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