Thailand is going to increase airport taxes
Many were already displeased with the 500 baht tourist tax to compensate uninsured foreigners, now it has also been announced that Thailand will increase the airport tax.
This 'passenger service charge' applies to passengers on domestic and international flights. This will go up next year. For domestic flights this was 100 baht and this will be 200 baht. The tax for foreign flights was 700 baht and is going to 800 baht.
The measure should reduce the Airports of Thailand (AoT) deficit. AoT operates nine airports in Thailand including Suvarnabhumi Airport, Don Mueang International Airport, Phuket International Airport and Chiang Mai International Airport. If approved by the Civil Aviation Board, the increase will bring 3,8 billion baht to the AoT.
AoT also has a passenger windfall. Passengers will be compensated for delays of three hours and more. Insurers apply a delay of five hours.
The move is remarkable because AoT is already receiving more revenue due to the increase in the number of travelers. This year, the number of domestic and foreign air passengers increased by 20,4% to 86.13 million. The number of flights to AoT airports also increased by 16,5 percent to 559.397. Most foreign passengers are Chinese, Japanese, Indians, Koreans and Russians.
Travel organizations are not happy with the increase, they fear that this will make Thailand less attractive to foreign tourists and that they may choose cheaper neighboring countries.
I used to always have to pay 500 b when I left, but that stopped at a certain point. I thought that even the Thai realized that you can't bully your guests with these kind of baseless charges. But,…. is it perhaps that I no longer saw it and it was processed in the ticket?
Marcus
When the 500 bth went off in cash, your ticket became € 15 more expensive. That way it is settled (according to my travel agency).
Travel organizations fear that Thailand will become less attractive due to an increase in the LGB?
What century are the people behind those organizations living in?
This is about two euros and thirty cents. The average tourist to Thailand spends a few thousand euros. That 2,30 disappears in the decimals!
In other words, ordinary mood making.
Completely agree with Theo.
This departure tax (not only at airports but also at border crossings) is being introduced for two reasons. First, the money will be used to pay the hospital bills of uninsured or uninsured tourists in Thailand who end up in hospital. Secondly, the government wants to improve the quality of the incoming tourist. That the money is for the hospitals remains to be seen (and can hardly be verified) and the second is just as much a fallacy as the tour operators.
A little surfing on the internet for the price of a plane ticket to bangkok can easily yield hundreds of euros. This is disproportionate to the amount of the departure tax. Another point is that it gives the impression of using the tourists as cash cows. The government would do well to account for the income from this departure tax to the foreign embassies every year. But yes, that transparency is an illusion, I'm afraid.
@Chris
Very clever piece of thinking, Chris. My congratulations!
I myself would never have realized that for a government that wants to use a tourist as a cash cow, it is at least as important to immediately improve the quality of that incoming tourist with the same measure!
In other words, the double agenda of the government in this case simply consisted of expressing an extra portion of milk to tourists through their improved quality!
Actually ready as a lump, but yes they still say that about the egg of Columbus these days!
Kito
They certainly haven't seen what it has cost Schiphol yet..
The Belgians and Germans still laugh about it today .
For many it is not about the money, but about the principle that you have to pay something for nothing.
As already mentioned, the 500bt is already included in the purchase price of an airline ticket. Indeed, it saved the walking when leaving Thailand.
If costs for hospitalization are going to be charged to all incoming travelers, I don't see why people still want to leave insured. There will then be a spirit of benefiting from the contributions everyone pays. I know from experience that in Thailand you cannot leave a hospital without paying. I also know that doctors even refuse to treat someone if they are not sure that money is available. In Buriram I almost saw a man bleed to death until the family came back with money to pay the doctor in advance. Foreigners also want to know if there is a (foreign) insurance policy that will cover the costs.
In my own case I need to have 800000Bt on the account but apparently the hospitals don't know that.
Vietnam, Cambodia, Burma are interesting alternatives to Thailand.
Thailand is pricing itself out of the market.
Chris: the unpaid medical costs of farangs amount to 0.2% of the amount that will now be collected. Agree with the thrust of your comment though.
I don't think it's any different in the Netherlands
explain to a Thai what and for what you pay to the water board!
Yes, maybe only 2 euros here and a few euros for something else, but a holiday in Thailand has become more than 10% more expensive in the past 30 years.
And that doesn't really help most backpackers now only stay in Thailand for a relatively short time anyway and move on to Myanmar, Laos, Cambodia and Vietnam.
Thailand has been cutting itself in the fingers for years and of course only find out when it will cost them (a lot of) money in the short term.
If you would look closely at the tourism statistics you will only see large increases in the number of tourists to Thailand in the past 20 years. But the Europeans and Australians have been replaced more and more by the Russians, the Chinese and the Japanese. And apparently they don't care about 500 or 800 baht. No problem for the Thai tourist business.
@ Chris The number of Chinese tourists is increasing strongly, last year 2,7 million. Krissana Parnsoonthorn writes in Bangkok Post today that the Chinese are not 'big spenders'. Europeans spend more money. Chinese people shop little, because many products for sale in Thailand are made in China and are cheaper there. Krissana also complains about the behavior of some Chinese people. So the question is whether the Chinese, as you write, don't care about the extra 500 or 800 baht.
Dear Dick…
Although the Chinese spend little in the hotels and restaurants (they seem to buy everything at 7Eleven and take it to their room), they do buy a lot of duty-free stuff in Pullman Power. There was even an article about it on this blog. Saw it with my own eyes a few months ago. The Chinese who visit Thailand are relatively wealthy and certainly not the poorest. If you can spend tens of thousands of baht on bags and watches in a few hours, 500 baht doesn't matter much, I guess… Besides, they all come through a tour operator who simply includes it in the package price.
The “Hospital measure” is 30 baht per day for short visits (max 3 days), above that you pay 500 baht. Smart people have already calculated that this brings the Thai state 12,5 BILLION baht and is disproportionate to the unpaid bills that foreigners cost the Thai state. What happens to the surplus is unclear, according to the relevant minister, it is used to improve healthcare in Thailand. Do you believe it? I don't believe in fairy tales, Sinterklaas and politicians. It's just a common way to take money out of foreigners' pockets. Politicians are politicians, after all.
The airport tax is in fact nothing more or less and is simply discounted in the ticket price, just like now. You won't notice it, except that your ticket will be a few euros more expensive, unless you have already bought a ticket for 2014, then you will most likely have to pay 100 baht when checking in when you leave Bangkok. because the tax increase has not yet been processed in the already paid ticket.
Will Thailand attract fewer tourists as a result? No not really. But Thailand is well on its way to becoming more expensive compared to surrounding countries. “Fortunately” the Baht has become slightly cheaper in recent months, so the damage is not too bad. But with the annual increase in hotel prices and if at some point the Baht starts to rise again in value, there will undoubtedly be people who will do the math and come to the conclusion that Vietnam, Malaysia, Cambodia, Indonesia is also fun…
I think this is a naive view of those who downplay this.
In recent years there has been a tendency to increasingly milk the tourist. All kinds of groups and organizations within Thai society want to get a piece of the pie and the experience at first sight is that this is quite successful. So people increasingly think: “Why shouldn't I? ”
A few examples: The banks with their 150 / 180 baht ATM tax. The AOT who, with their high rates, ensure that the taxi rates are excessively high at many airports. The “double pricing” system, in which, for example, nature parks and private entrepreneurs charge a multiple to the tourist. The airport tax. And of course the 500 baht insurance, which well-insured visitors have to pay for a service that no one will ever use. A large part of these "Robin Hood" taxes disappear into the pockets of the Thai elite and unfortunately do not go to the "poor".
I foresee that more and more such pranks will be played in the future.
Also, I don't think people are averse to possible regular price increases. Many small ones can become very big…
Imagine in the year 2016: airport tax 1200 baht, insurance 850 baht, each temple 60 baht, additional hotel tax 200 baht per night, police bribe minimum 400 baht etc.,etc. It could just happen…
So there is indeed a danger to tourism. Many, like a frog being slowly boiled to death, will not be put off by this. Others will draw their conclusions…
Dear Eugene…
The Netherlands is definitely the country of pleasure? Have you ever heard of sufferance tax, municipal fees for every conceivable and necessary permit, inheritance tax, transfer tax, environmental tax, tourist tax. Where do the Dutch taxes go? To Greece?
If you really are so fed up with the poor, you give 1000 baht to a small entrepreneur on the street every day: just 150 baht for a beer, 100 baht for your cup of coffee, 50 baht for some pineapple or mango. Then you are doing something good. Don't whine about how expensive it all is. It is still very cheap here, partly because the salaries and incomes of small entrepreneurs are so low. But I am sure that there is less whining here than in the Netherlands.
Dear Chris,
I thought I didn't say anything about Dutch taxes or the situation in my contribution.
I partially agree with you. All the money I save with this kind of tax I like to give to poor Thai people who really need it.
Don't worry I have put a lot of money into the real Thai economy with small entrepreneurs in the past and I will continue to do so…
I do the same here. Usually buy at the market or from local merchants. In companies such as Lotus or Makro, the money disappears to the rich and does not benefit the population. Maybe a small part through taxes.
Totally agree. It is, of course, an accumulation of costs and increases. In addition, Thailand is rapidly becoming more expensive. My girlfriend complains bitterly and she's not the only one. Thailand is not only becoming more expensive for tourists, but also for Thais. The difference is that tourists have choice and just as easily go to another country. We have seen that in Europe with Spain. Overpriced and unfriendly staff and boom everyone went to Turkey. So be careful, a tourist is not a cash cow.
The founder of Martinair, which has been devastated, once said in an interview with the undersigned: “The tourist is like a flea; you never know where he will jump”. A correct observation and a warning to Thailand.
Imago also comes on foot and leaves on horseback. A tourist decides on the basis of non-rational impulses. If the media publish enough negative stories about Thailand, the goose with the golden eggs in its crust may have died.
Dear Hans.
What nonsense you write now. Most of choosing a vacation destination is routine behavior. Whether or not to go on holiday is a rational choice (mostly based on money, but also on having small children and having bought a new house). Choosing the destination is often irrational or emotional. Good experiences play a major role in this. So if you had a nice holiday in Turkey, or in France, or in Thailand, chances are you will go back there more often (and perhaps every year). You can also read very well on this blog.
The image of a country, city or brand can remain the same for a very long time. This also applies to positive and negative images. So they don't change that fast. Thailand is not in the news every day in the Netherlands. And few know about the misery of the floods. After the bomb attack on Bali and the Tsunami in Thailand, the growth of tourism was restored within a year. Image damaged? Hardly. Ask the tourist in Phuket if he/she is afraid of a tsunami and 99% shrug their shoulders.
Dear Hans…
Most readers of this blog do not live in Thailand (like you and me) but in the Netherlands or Belgium. Some of them have a (too) romantic image of this country. Others would like to come and live here and want to eat it both ways: the delights of Thailand in terms of food, nightlife, beach, quality of life, still cheap living costs (which are getting more and more expensive, but the income of the Thai also rises a bit) combined with the social services and financial security of the Netherlands. Many comments and discussions on this blog (health insurance, all sorts of rules about immigration, visas, marriage contracts, starting your own business, paying taxes, departure tax, airport tax, getting benefits, closing bars on the death of the patriarch) have to do with the fact that this combination is impossible. Therefore, more information is needed which this blog happily provides.
Not long ago, a large number of ambassadors from European countries publicly complained to the Thai government about the situation in Phuket and Pattaya. Quite unique, because that is 'not done' in Thailand. The Thai government has promised to address it and keep embassies informed, in addition to the Special Court for Tourist Affairs in Pattaya. I haven't seen it anywhere else on this planet.
Dear Chris. I even assume that many responses come from people who have not seen anything else in Thailand outside the walking street in Pattaya and elsewhere and only have their knowledge of, hear+say. So I agree with your view. If we were to analyze the airport tax that you have to pay with every ticket, for example from Schiphol or Brussels airport, we would be amazed at what we can all pay for. If Airport Bangkok adjusts its prices and says why in advance, I think that's very neat. Ridiculous is what the tour operators say about this. There are no additional costs for them. Only the customer pays this - so it is charged to him. The Chinese do spend a lot of money, but only for e.g. brand article-speak quality (e.g. WMF). In Frankfurt (Germany) a kettle, pots and pans shop has told on TV that its profit has increased by 5% (no tip error) in the last 2000 years. According to him, the Chinese buy an average of € 500 for household items = kitchen. Apparently there are no decent pans or kettles for sale in China. great martin
Dear Hans
Some of the prices and taxes mentioned by Eugenio do not only apply to foreign tourists but to everyone: the taxi fares at the airport, the airport tax, the departure tax. These taxes must also be paid by the Thai who leave the country or take the taxi at the airport. My wife flies just about every week; the same goes for all expats in this country. So there is no discrimination on the basis of nationality.
The higher prices for tourists is a game that the 'bad' entrepreneur plays with the tourist. this happens in every country where 'foreigners' come. I never pay it!!
Just for the numbers among us: in 2012, Suvarnabhumi airport handled 53 million passengers. The number of tourists to Thailand was 22 million. A few comments on that:
– not all tourists enter Thailand via Suvarnabhumi airport. There are other airports including that of Phuket which is important for tourism and also Don Muang. In addition, there is the possibility by road (for tourists coming from Laos or Cambodia, not to mention from Malaysia) and to a much lesser extent by water;
– probably the tourists who travel via Suvarnabhumi are counted twice in the passenger statistics: when they arrive and when they leave.
Based on this, I estimate that the ratio tourist-business (or better: non-tourist) at all border crossings to Thailand is 50-50. The departure tax and airport tax will therefore be partly paid by the Thai themselves.
That could very well be. But as long as those alternative countries do not offer Pattaya or Phuket or organized places where the same "Activities" can take place in the same relationship, many tourists still go to Thailand. This regardless of the increased costs. Bottom line, it remains cheap in Thailand and, as far as you look, you can party and beasts in Thailand differently than in the alternative countries or even in the Netherlands. great martin
@anyone who criticizes the travel companies' comments
A travel organization is an interest group, a pressure group.
The travel organization is only doing what its initial mission is here: it on behalf of the entire interest group (in this case the traveller, not only the tourist, but also the local, the businessman, anyone who for whatever reason departs from a Thai airport travel by plane) try to undo a (government) measure that affects all travelers.
Please do not ridicule people who dutifully carry out their social / professional assignment correctly. They are very likely also defending your own interests.
Gr Kito
Let's take a look at the increase in domestic flights. A price increase from 100 to 200 baht.
The number of passengers has increased enormously in recent years, so I think the revenue has only increased. The AoT nevertheless claims to have a shortage and wants to compensate for this. What is reasonable then 120, 130 baht? Or the easy way an increase to 200%?
Unfortunately, this example does not stand alone. My fear is that more and more authorities (thinking: the tourists will keep coming anyway) will look for the easy way.
PS
Dear top martin: No, despite more than 800 days in Thailand in 14 years, I have never been to Pattaya. I also find Schiphol ridiculously expensive. I only respond from my own experience and not from "hearsay".
People who can read are at an advantage. It says: many people = so not all people. Like you, I will not go in Pattaya. The increase in levies in border traffic with Thailand, I say, is peanuts. Look at the Netherlands what, why, where and above all how much the motorist may or must pay if he has his own car. Also applies to other countries in Europe. I'm not going to list them all here. They are known.
Why do we (Expats) want to know what the Thais do with an increase?. Why don't we ask in our own country what the Dutch government does with all that money they take from motorists? I have no problem paying 1000 Baht in Thailand when entering or leaving. That is still much, much cheaper than what I can-must-pay in the Netherlands without knowing where it is going. great martin
It is Thaksin's wet dream less tourists to Thailand….. He has been dreaming of this for years. Now with his sister in power, it might still happen. Some will say what does he have to do with it now think but just after 1 + 1 always remains 2 right?.
I don't think so, Rik, because Thaksin has interests in hotels and airlines. And if I can believe all the gossip about him, he never has a wet dream, just like his friend Berlussconi........
I see here that people think like a Dutchman, but if you live here you have to think like a Thai.
You have to adapt here, I keep reading that here, so don't make comparisons with the Netherlands.
@BERT B
And Thai people now think: "Oh, how nice, I can pay extra airport tax on the occasion of my next plane trip!".
Or could it be that I am thinking too Thai now….?
Gr Kito