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Thailand reintroduces 300-baht tourism tax to boost revenue and infrastructure

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Thailand's Tourism Minister, Sorawong Thienthong, announced plans to reintroduce the 300-baht tourism tax, which was previously shelved under the administration led by Prime Minister Srettha Thavisin. This move aims to stimulate tourism revenue, with a target of reaching at least 3 trillion baht this year.

A report in Bangkok Post quoted Minister Sorawong, who assumed office recently, as saying, "I believe the collection of the tourism fee benefits the tourism industry since the revenue can be used for the development of infrastructure and attractions, along with ensuring tourist safety." The tax, initially approved by the cabinet in 2022, has not yet been enforced, pending publication in the Royal Gazette.

Under the proposed scheme, foreign arrivals by air would pay 300 baht, while those arriving by sea and land would be charged 150 baht. However, the minister noted that more time is needed to assess the system's readiness, making it uncertain whether the collection will commence in the final quarter of this year. The ministry is working on finalizing the collection procedure in a manner that does not negatively impact tourism sentiment.

In addition to the tax, the ministry is considering reinstating successful tourism stimulus programs from the pandemic era, such as the "We Travel Together" co-payment scheme for hotel rooms and air tickets. Such initiatives have been recognized for their effectiveness in directly benefiting local economies.

Looking ahead to the high season, the ministry anticipates that events like marathons, Loy Krathong, and the New Year countdown will drive revenue to meet the 3 trillion baht target from both domestic and international markets. This aligns with the government's long-term objective of achieving 3 trillion baht from foreign markets alone within a four-year timeframe.

On the topic of hosting a Formula One motor racing event, Minister Sorawong expressed support for the government's initiative, suggesting that a street circuit on Ratchadamnoen Road could offer economic benefits by showcasing Thailand's unique character.

Addressing concerns about price-dumping tours, the minister noted that while the number of illegal companies might not have increased, the financial losses from these activities are expected to be more significant than in the past. Measures are being taken to curb such illegal practices.

A meeting with 20 private tourism operators, including the Association of Thai Travel Agents and the Tourism Council of Thailand, is scheduled for Wednesday to discuss future tourism policies.

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