Thai prime minister Srettha Thavisin announced on Jun. 8 that his government will not be going ahead with a proposal to impose a 300 baht (S$11.05) "tourism fee" on foreigners arriving by air.

The policy, which was proposed by a previous administration, was first announced in February 2023.

Fee reportedly unpopular in private sector

According to The Star, Srettha said removing the fee could result in more tourists visiting Thailand.

More tourists would inject more money into the local economy through shopping and other activities, potentially more than the revenue the 300 baht fee would generate for the government.

Srettha added that any decisions must take into account the voices of all stakeholders.

Funds could also be spent to support tourism if the government could make use of other tax sources to generate additional revenue.

Srettha did not assign blame when asked about Thailand’s drop in the World Economic Forum’s (WEF) tourism and travel development index.

Thailand had fallen to 47th out of 119 countries.

He said: "This government aims to continuously develop every aspect. And we should respect the previous government because all governments agree that tourism is a significant flagship that can generate substantial revenue for the country."

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