The implementation of the Thailand Tourism Fee (TTF), which was previously scheduled to begin in June 2023, has been postponed until September 2023, according to an update issued by the Thai government.
Tourism and Sports Minister Phiphat Ratchakitprakarn announced that the reason for the delay is to ensure the smooth operation of the TTF system while discussions with airlines continue to determine the appropriate collection method in accordance with International Air Transport Association (IATA) rules.
What is the Thailand Tourism Fee?
The Royal Thai Government plans to impose a tourism fee of 300 Baht, which is equivalent to $9 or around ₹750, on all international tourists arriving in the country. The purpose of the TTF is to develop and improve tourist destinations, as well as provide medical insurance for tourists.
While it is not yet clear what medical insurance coverage entails, previous announcements suggested that government coverage would be limited to discretionary help in mass accidents such as cremation costs and compensation to family members.
Who is exempted from the TTF?
Certain groups are exempted from the tax, including diplomats, infants under 2 years, those with work permits, single-day and transit passengers, and permanent foreign residents in Thailand.
While some ex-pats may consider themselves as “residents” and potentially exempt from the tax, the term “resident” in this context refers to permanent residents who hold a red police residency book and have no visa expiry date on their passports. This status is much sought-after and requires a complex application procedure that can take years.
Challenges for taxable foreigners at land border crossings
Foreigners arriving at land border crossings face their own set of challenges, such as needing change, paying in foreign currencies, or offering online payments. The Tourist Authority of Thailand is currently exploring various solutions, including advance payment online, cash booths at immigration checkpoints, and the establishment of a private company to sort everything out.
Delayed implementation
The implementation of the new tax has been delayed until September due to the reluctance of airlines to include the tax in airfares while excluding it from the tickets of Thai nationals and the exempt groups.
It is still unclear whether the dilemma will be resolved by taxing everybody and instituting a post-arrival refund policy, or by training travel agents on what documentation to look for when deciding whether to include the tax. Establishing a payment system on arrival at Thai airports could also pose macro-crowd control issues.
Conclusion
The implementation of the Thailand Tourism Fee (TTF) has been postponed until September 2023 due to challenges with collection methods and the reluctance of airlines. The TTF is a 300 Baht tax imposed on all international tourists arriving in the country, with the purpose of developing and improving tourist destinations and providing medical insurance for tourists. While some groups are exempted from the tax, foreigners arriving at land border crossings face their own set of challenges in paying the tax. The Tourist Authority of Thailand is currently exploring various solutions to address these challenges.
FAQs:
Q.1. What is the Thailand Tourism Fee?
A. The Thailand Tourism Fee (TTF) is a 300 Baht tax imposed on all international tourists arriving in the country.
Q.2. When was the implementation of the TTF originally scheduled to begin?
A. The implementation of the TTF was originally scheduled to begin in June 2023.
Q.3. Who is exempted from the TTF?
A. Diplomats, infants under 2 years, those with work permits, single-day and transit passengers, and permanent foreign residents in Thailand are exempted from the TTF.
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