Thai AirAsia sounds the alarm over a ฿1,000 departure tax as Thailand’s tourism recovery stalls again and dives. Foreign arrivals reach just 23.94 million, ASEAN demand drops 20%, and travel agents warn of ฿150 billion in lost spending. Yet more taxes are on the table for an industry that never recovered from the 2020 shutdown.
Thai AirAsia chief Tassapon Bijleveld warns that Finance Minister Ekniti Nitithanprapas’s proposed ฿1,000 departure tax threatens international flights and Thailand’s ailing tourism industry. Travel agents fear losses of up to ฿150 billion annually against projected tax collections of just ฿45.9 billion. Meanwhile, foreign arrivals have reached only 23.94 million, with weekly numbers falling 7.49%. Tourism receipts remain ฿360 billion below 2019 levels, while ASEAN arrivals have plunged 20%. Yet the government is considering another ฿450 tourist entry fee. With consultation closing on 29 October, airlines and tourism operators are challenging plans to impose fresh charges on an industry still struggling to recover from the draconian COVID-19 shutdown in 2020.
Thai AirAsia executive chairman Tassapon Bijleveld has warned that Thailand’s proposed ฿1,000 departure tax could undermine international flights and tourism. His intervention comes as the country’s foreign tourism recovery continues to disappoint.
Meanwhile, industry leaders estimate that the measure could cost Thailand up to ฿150 billion annually in lost tourism receipts. New government figures show just 23.94 million foreign arrivals by 10 October, with weekly numbers falling 7.49%.
Finance Minister Ekniti Nitithanprapas is pursuing the tax despite Thailand’s failure to regain its pre-pandemic tourism business. Seven years after welcoming almost 40 million foreign visitors, the kingdom remains hundreds of billions of baht short of its former annual tourism earnings.
Tassapon warns departure tax could cut international flights as government plans more tourist taxes
Tassapon, executive chairman of Asia Aviation, which operates Thai AirAsia, has criticised the government’s proposed departure tax. His intervention reflects concerns across the Airlines Association of Thailand, representing seven carriers.
The airlines fear higher charges could weaken passenger demand and undermine the economics of international routes. Consequently, fewer outbound passengers could make services less profitable, prompting carriers to reconsider flight frequencies and destinations.
The concern extends beyond Thai passengers travelling overseas. Airlines depend on sufficient demand in both directions to sustain international services. Therefore, weaker outbound traffic could reduce the number of seats available to foreign tourists entering Thailand. Such reductions would affect an industry still struggling to rebuild its international business.
Meanwhile, Finance Minister Ekniti Nitithanprapas is overseeing proposals for a ฿1,000 departure tax affecting Thai nationals and foreigners. Separately, the government is considering a ฿450 entry fee for international tourists.
Both would add to existing airport charges, including the ฿1,120 international passenger service charge at Airports of Thailand facilities. If all three applied to an eligible traveller, the combined amount would reach ฿2,570.
Departure tax consultation continues as latest arrivals fall and Russian visitors buck the decline
Furthermore, the departure-tax draft permits an eventual maximum charge of ฿5,000. Public consultation continues until 29 October, although neither proposed tax has been implemented.
Nevertheless, the measures have drawn objections from airlines, travel agents and hotel operators. Industry representatives warn that higher travel costs could weaken Thailand’s position against competing tourism destinations.
The controversy has intensified following another disappointing set of official tourism figures. On 14 October, the Ministry of Tourism and Sports released its latest foreign arrivals report. It showed that Thailand welcomed just 23.94 million international visitors between 1 January and 10 October 2026. Those arrivals generated approximately ฿1.16 trillion in tourism receipts. However, arrivals during 4–10 October fell 7.49% compared with the preceding week.
The ministry attributed part of the decline to the conclusion of China’s Golden Week holiday and other regional holidays. By contrast, Russian arrivals increased 15.36%, demonstrating stronger demand from an important long-haul market.
Even so, gains in individual markets have failed to restore Thailand’s overall international tourism business. The latest figures reveal an uneven recovery as the country approaches its important year-end high season.
Thailand remains below its 2019 tourism peak after pandemic restrictions devastated foreign arrivals
Earlier statistics had already demonstrated the industry’s difficulties. Between January and August, Thailand welcomed 20.93 million foreign tourists, down 3.08% against the corresponding period in 2025.
Accordingly, the latest figures reinforce concerns about another disappointing year. Despite efforts to attract international visitors, Thailand remains substantially below the tourism volumes achieved before COVID-19.
In 2019, the country welcomed almost 40 million international tourists. Foreign visitors generated approximately ฿1.9 trillion, supporting hotels, restaurants, transport companies and thousands of smaller enterprises. However, Thailand has never returned to those visitor numbers. Seven years later, its international tourism industry remains significantly smaller than before the pandemic.
The collapse began in 2020, when Thailand imposed stringent restrictions to combat COVID-19. International arrivals subsequently fell dramatically as borders closed and travel became subject to extensive controls.
For prolonged periods, foreign tourism virtually disappeared. As a result, hotels lost guests, restaurants lost customers and travel agencies lost bookings. Transport operators, suppliers and businesses dependent on international visitors suffered corresponding reductions in income.
Tourism revenue remains ฿360 billion below 2019 as businesses continue to face weaker visitor spending
Although international travel eventually resumed, the recovery has remained incomplete. The financial consequences continue to affect businesses throughout the country. Many enterprises depend directly on foreign visitors, while others supply goods and services to the tourism industry. Hence, reduced tourist spending also affects employment, wages, investment and demand across the wider economy.
The scale of the shortfall is considerable. Kasikorn Research Centre forecast in August that Thailand would welcome approximately 31.36 million foreign visitors during 2026. That represents a projected 4.9% decline from 2025.
At the same time, the research centre expects international tourism receipts of approximately ฿1.54 trillion, substantially below 2019’s ฿1.9 trillion.
The difference amounts to approximately ฿360 billion in annual receipts. Moreover, these nominal figures do not account for inflation since 2019. In real purchasing-power terms, the gap is therefore larger. The documented shortfall does not establish a ฿500 billion annual loss. Nonetheless, it confirms that Thailand continues to miss hundreds of billions of baht in tourism income.
This represents real commercial income rather than an abstract economic statistic. Foreign visitors spend money on accommodation, food, transport, entertainment, shopping and local services.
In turn, that spending supports employees, suppliers and business investment. When visitor numbers fall, those transactions disappear. Thus, prolonged tourism weakness has deprived businesses of substantial income over several consecutive years.
Travel agents warn departure tax could cost ฿150 billion annually against ฿45.9 billion in collections
The cumulative financial damage since 2020 is considerably greater than the shortfall recorded in any single year. During the pandemic, international tourism virtually ceased for extended periods.
Subsequently, the recovery failed to restore previous levels of foreign spending. Throughout this period, businesses continued to face operating costs despite reduced customer numbers. The effects have persisted long after formal travel restrictions ended.
Against this background, the proposed departure tax has become a growing source of controversy. The Association of Thai Travel Agents has warned that economic losses could exceed the revenue collected. Its honorary secretary-general, Adith Chairattananon, estimates potential annual losses between ฿50 billion and ฿150 billion. These figures concern tourism receipts rather than direct government revenue.
The warning is particularly significant when compared with projected tax collections. Industry estimates suggest the departure tax could generate approximately ฿45.9 billion in gross annual revenue.
However, ATTA’s lower loss scenario stands at ฿50 billion, while its upper estimate reaches ฿150 billion. Consequently, potential lost tourism spending could exceed expected gross collections by more than three times.
Industry estimates link higher tourism taxes to weaker demand and potentially billions in lost spending
These figures are industry scenarios rather than confirmed economic outcomes. Equally important, tourism receipts and government tax revenue are different financial measures.
The former represents spending throughout the economy, while the latter is money collected by the state. Nevertheless, the estimates raise questions about the wider commercial consequences of additional international travel charges.
Adith based part of his warning on international research examining tourism taxation and demand. According to the research cited, a 10% increase in tourism-related taxes could reduce demand by approximately 5.4%.
However, that relationship does not establish the precise effect of Thailand’s proposed charge. Actual outcomes would depend on passenger behaviour, ticket prices, exchange rates and competition from other destinations.
Adith also estimated that losing one million foreign visitors would remove approximately ฿50 billion from Thailand’s tourism economy. On that basis, two million fewer visitors would mean approximately ฿100 billion in lost spending. Likewise, a reduction of three million would imply losses approaching ฿150 billion. These calculations illustrate the scale of the financial risks identified by travel industry representatives.
Airlines warn weaker outbound demand could reduce flight frequencies and seats for incoming tourists
The aviation industry’s concerns add another dimension to the controversy. Tassapon’s warning focuses on the commercial realities of operating international flights.
Airlines carry foreign visitors entering Thailand and Thai passengers travelling abroad. Consequently, weaker demand in either direction can affect route profitability. A departure tax could therefore influence inbound tourism indirectly through reduced airline capacity.
This is particularly relevant to regional routes, where airlines compete heavily on ticket prices. Additional charges increase overall passenger costs, even when underlying airfares remain unchanged. Meanwhile, carriers must maintain sufficient passenger volumes to cover operating expenses. If demand weakens, airlines may reduce frequencies or reconsider services that become less profitable.
For Thailand, fewer international flights would mean fewer available seats for incoming tourists. That could affect Bangkok and provincial destinations dependent on direct international connections. Additionally, reduced airline capacity could restrict visitor numbers during busy periods. The airlines therefore argue that the consequences extend beyond passengers directly paying the departure tax.
Hotels report sharp fall in ASEAN arrivals as regional demand weakens ahead of the year-end high season
The Thai Hotels Association has separately warned about declining demand from neighbouring countries. Its president, Thienprasit Chaiyapatranun, reported that arrivals from ASEAN markets had fallen approximately 20%.
Meanwhile, the association expects a largely flat fourth quarter, despite stronger bookings at some luxury properties. The figures highlight contrasting performances across Thailand’s accommodation industry.
Higher-end hotels may continue attracting affluent international guests. However, smaller establishments often depend on regional visitors, short holidays and repeat customers. These travellers also support restaurants, shops, local transport operators and entertainment businesses. Consequently, weaker ASEAN arrivals can affect commercial activity well beyond hotel occupancy.
The weakness in regional markets comes as Thailand faces continuing competition from other Asian destinations. Airlines and tourists have alternative routes and holiday locations available. Meanwhile, international visitor numbers remain substantially below their 2019 peak. Industry representatives fear additional charges could make recovery more difficult, particularly among price-sensitive travellers.
Thailand needs a surge in daily foreign arrivals to reach annual targets before the end of December
The latest official statistics also raise questions about the final tourism total for 2026. With 23.94 million arrivals recorded by 10 October, Thailand needs another 6.06 million visitors to reach 30 million. That requires approximately 73,900 daily arrivals over the remaining 82 days. The calculation demonstrates how heavily the annual result depends on the approaching high season.
Reaching Kasikorn Research Centre’s forecast of 31.36 million would require another 7.42 million tourists. Consequently, daily arrivals would need to average approximately 90,500 until the end of December. A total of 33 million would require another 9.06 million visitors, equivalent to approximately 110,500 arrivals daily.
A return to 35 million would demand an even greater acceleration. Thailand would need another 11.06 million visitors during the final 82 days. That represents approximately 134,900 arrivals every day. By comparison, the average across the first 283 days of 2026 was approximately 84,600 daily arrivals.
The figures demonstrate the challenge facing the industry. However, the latest weekly decline does not establish that annual forecasts will be missed. Thailand traditionally attracts increased foreign arrivals during the final months of the year. Nevertheless, the country’s performance will depend heavily on international demand during the remaining weeks.
Finance Ministry defends departure tax as consultation nears deadline and airlines oppose new charges
Meanwhile, the Finance Ministry continues examining the departure-tax proposal. Ministry spokesman Winij Wisetsuwanphum has defended the measure as a potential source of funding for tourism development. He also identified encouraging Thai nationals to holiday domestically as another objective. The ministry is still reviewing its revenue projections.
The proposal therefore involves more than collecting additional revenue from foreign visitors. It would also impose a charge on Thai nationals leaving the country. By contrast, the separate ฿450 entry fee would target foreign tourists. Both remain proposals, while the existing airport passenger service charge is already in force.
The departure-tax draft’s provision for a maximum ฿5,000 charge adds further uncertainty. Although the initial proposal is ฿1,000, the draft permits a substantially higher amount. Consequently, the final structure remains important to airlines and tourism operators. Public consultation closes on 29 October, providing industry organisations an opportunity to submit their objections.
The government’s position centres on additional revenue, tourism development and encouraging domestic holidays. However, airlines are concerned about weaker international passenger demand. Travel agents warn about lost foreign tourism receipts. Separately, hotel operators report declining regional arrivals and subdued expectations for the final quarter.
Long tourism recovery leaves small businesses exposed to lower spending and persistent operating costs
These concerns arise during a prolonged period of weak tourism performance. Thailand welcomed almost 40 million foreign visitors in 2019, before pandemic restrictions devastated international travel.
Subsequently, the country reopened but failed to restore its former visitor volumes. The financial shortfall has continued through successive years, affecting businesses dependent on foreign spending.
The projected ฿360 billion difference between 2019 and 2026 tourism receipts is especially significant. It represents the gap against the earlier nominal revenue benchmark.
Furthermore, inflation has reduced the purchasing power of receipts now being generated. The industry’s real economic recovery therefore remains weaker than nominal figures alone suggest.
For smaller tourism businesses, the consequences are immediate. Fewer visitors mean fewer bookings, reduced customer spending and weaker sales. Meanwhile, operating expenses continue regardless of tourist numbers. Hotels must maintain properties, restaurants must pay staff and suppliers, and transport companies must operate vehicles. Consequently, prolonged weakness places pressure on businesses dependent on sufficient visitor volumes.
Airlines and travel agents question wider costs of departure tax as ministry examines revenue projections
The aviation sector faces similar commercial pressures. Airlines require passenger demand to justify aircraft deployment, staffing and route frequencies. International services also depend on viable traffic flows in both directions.
Tassapon’s warning reflects the risk that additional departure costs could weaken those flows. Reduced airline services could then affect Thailand’s ability to attract foreign tourists.
ATTA’s financial warning is more direct. The association estimates potential annual tourism losses between ฿50 billion and ฿150 billion. Meanwhile, the measure is expected to generate approximately ฿45.9 billion in gross tax receipts. The figures are not equivalent fiscal measures, but they demonstrate the scale of the industry’s concerns.
No comprehensive government assessment covering all these effects has been established in the supplied information. Such an assessment would need to examine passenger demand, airline capacity, tourist spending and employment. Furthermore, it would need to consider net fiscal effects rather than gross tax collections alone. The Finance Ministry has said it is still examining revenue projections.
Tourism remains far below pre-pandemic levels as government weighs new taxes on international travel
The proposed departure tax has not been introduced and cannot explain the existing decline in international arrivals. Nevertheless, its consideration comes at a difficult point in Thailand’s tourism recovery. The latest figures show weaker weekly arrivals, declining regional demand and another year below pre-pandemic visitor numbers. Industry organisations are also warning against further increases in international travel costs.
The contrast with 2019 remains stark. Thailand then attracted almost 40 million international visitors and generated approximately ฿1.9 trillion in foreign tourism receipts. Seven years later, Kasikorn Research Centre expects just 31.36 million visitors and ฿1.54 trillion in receipts. Consequently, the industry remains substantially below its former scale, despite the restoration of international travel.
The difference is not confined to national statistics. Reduced tourism spending means lower revenue for hotels, restaurants, transport businesses and their suppliers. It also means less income circulating through communities dependent on international visitors. Meanwhile, cumulative losses since the pandemic have left businesses facing years of reduced commercial activity.
The government now faces a decision on further travel taxation while that recovery remains incomplete. Finance Minister Ekniti’s proposal has attracted opposition from airlines and travel industry representatives. Their warnings concern weaker passenger demand, reduced flight frequencies and substantial losses in tourism spending.
Tassapon and travel agents press warnings as October deadline approaches for disputed departure tax
Tassapon’s intervention has placed international aviation at the centre of the controversy. Meanwhile, ATTA’s estimate of up to ฿150 billion in annual losses has sharpened scrutiny of the proposed tax. With public consultation closing on 29 October, the Finance Ministry must determine the next stage of the measure.
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Thailand enters the final months of 2026 with just 23.94 million foreign arrivals recorded by 10 October. Weekly arrivals have fallen 7.49%, while ASEAN markets remain under pressure.
Moreover, projected annual tourism receipts remain approximately ฿360 billion below their 2019 level. Against that background, the government is considering new travel charges as industry representatives warn of further damage to tourism.
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