BANGKOK – Thailand’s highly controversial landing fee has been renamed a “travel tax” and is expected to come into effect around mid-2025, starting with air arrivals, the Ministry of Tourism and Sports announced.

Minister Sorawong Thienthong said on October 23 that the new tax would be submitted to the Council of Ministers for approval in the first quarter of 2025.

Once approved, it will come into force in six months, i.e. around mid-2025, he said, adding that in the first phase, the tax will be imposed on people arriving by air.

The Kha Yeap Pan Din (entrance fee on Thai soil), also known as the landing fee, was approved in principle by the Cabinet in February 2023.

It aims to impose a fee of 300 baht (S$11.70) on foreigners arriving by air and 150 baht on those arriving by land or sea.

Sorawong said the money will be used to buy insurance for foreigners and the rest will go to the tourism development fund.

The fund will support the improvement of tourist attractions, including the construction of facilities for disabled people and toilets for tourists.

He said the ministry is working on a tax collection application that will be linked to Krungthai Bank’s system. The current insurance amount will remain the same, which is no more than 60 baht of the 300 baht travel tax per person.

The insurance payout in the event of death is one million baht, and a maximum of 500,000 baht in the event of injury.

This amount is added to the insurance purchased by foreign tourists themselves. Insurance under the new travel tax will cover a stay in Thailand no longer than 30 days, which applies to approximately 87%. arrivals from abroad – informed the minister.

He added that after the first stage, the Council of Ministers may consider adjusting the tax on arrivals via land and sea channels to the same rate as for air travelers to avoid accusations of unequal treatment.

Sorawong added that travel tax will not be levied on cross-border sellers who will be required to present a border pass when crossing the border to and from neighboring countries. NATION/ASIA NEWS NETWORK