Thailand’s airlines have become the most prominent industry voice yet to warn against the country’s proposed 1,000-baht exit tax, arguing the levy could end up costing the tourism sector far more than it brings in. Bangkok Post reported this week that the tax, still a draft proposal, could cost Thai tourism an estimated 50 to 150 billion baht a year in lost revenue — against roughly 45.9 billion baht the levy itself is projected to collect, based on 2025’s 32.9 million foreign arrivals and 13 million outbound trips by Thais.
The warning widens who is affected beyond the hotels and travel agents who first objected. Tassapon Bijleveld, executive chairman of Asia Aviation — the parent of Thai AirAsia — speaking for the Airlines Association of Thailand, which represents seven carriers, said the tax would weaken Thailand’s competitiveness against regional rivals, particularly Vietnam. He suggested that if the government needs the revenue, raising value-added tax would be a less damaging option than taxing departures directly.
The proposal itself has not changed since Zagdim’s earlier coverage of the Finance Ministry’s backing for the 1,000-baht figure: it remains a draft under public consultation, would apply to travellers of all nationalities leaving by air, and carries a legal ceiling of 5,000 baht. What is new is the scale of pushback and its quantification. The low end of the loss estimate assumes at least one million travellers decide not to visit Thailand at all; the figure is partly grounded in a 2023 study in the Journal of Travel Research, which found tourism demand falls by about 5.4% for every 10% rise in tourism-related taxes. Combined with the existing airport passenger service charge and a separately proposed arrival fee, foreign visitors could face up to 2,570 baht in stacked charges per trip — about 5.14% of average tourist spending.
On what happens next, the Revenue Department’s public consultation on the draft runs only until October 29, and the measure has not been enacted. The Association of Thai Travel Agents, which has already asked the Finance Ministry to delay the bill pending a full impact study, says it plans to raise the issue directly with the finance minister, possibly around the IMF–World Bank meetings being held in Bangkok. Until then, the tax stays exactly where it was when the public consultation opened: a proposal, not a policy.
References
Bangkok Post – Warning over massive losses from exit tax / The Pattaya News – Thai Tourism Could Lose Far More Than Proposed 1000 Baht Departure Tax Would Raise, Airlines Warn
