BANGKOK: Thailand is considering a three-tier insurance system for foreign tourists, under which visitors taking part in high-risk activities or renting vehicles could be required to purchase additional cover beyond a proposed 450-baht tourism fee.
Weerasak Kowsurat, a former tourism and sports minister and chairman of the advisory team to Deputy Prime Minister Suphajee Suthumpun, said the proposed fee, commonly referred to as the tourist entry levy, was undergoing a consultation process lasting at least 30 days.
Suphajee, who also serves as commerce minister, has instructed officials to gather views directly from people working in the tourism industry rather than relying solely on online responses.
Weerasak said he did not believe the 450-baht charge would significantly deter foreign visitors, noting that similar fees were collected in several other countries.
The measure could generate nearly 10 billion baht a year in non-budgetary state revenue, creating what he described as Thailand’s first large-scale fund dedicated to tourism.
Open oversight proposed for tourism fund
Although the fund would be administered by the government, Weerasak proposed that it operate under a highly transparent Open Government model.
A second oversight committee comprising tourism stakeholders could be established to monitor every stage of spending and budget management. Meetings could also be broadcast live to allow the public to scrutinise decisions.
He said the approach would be consistent with the growing role of the Joint Public and Private Sector Consultative Committee in economic policymaking, under which the government and businesses share responsibility for developing and implementing measures.
As Thailand seeks to move towards higher-quality tourism, Weerasak acknowledged that the fee could discourage some highly price-sensitive travellers.
“People who are not prepared to pay this fee may be telling Thailand something about the type of market they represent,” he said.
“We may have to accept that some price-sensitive segments could be lost.”
However, he argued that demand would remain strong if Thailand continued improving the quality of its tourism products and services.
“If we can develop a good supply of quality products, we do not need to worry about tourist demand,” he said. “People naturally want products and experiences of good quality.”
Several payment options considered
Authorities are studying several flexible collection methods to prevent the fee from creating congestion at immigration checkpoints.
One option is for airlines to collect the payment as an enhanced service attached to an air ticket, possibly combining the fee with insurance. Airlines could deduct a management charge for processing the payment.
Another possibility is to use the online TM6 immigration registration system, allowing travellers to register and pay before departing for Thailand or after arriving but before presenting their documents to immigration officers.
Airport kiosks and QR-code payment points could also be installed as backup channels for travellers who have not paid in advance.
Weerasak said the objective was to make the process as convenient as possible and prevent the collection system from becoming a bottleneck at ports of entry.
Basic insurance funded by entry fee
Under the proposed three-tier model, the first level would provide basic protection for every foreign visitor entering Thailand.
Part of the 450-baht tourism fee would be used to purchase accident and emergency medical insurance for travellers.
The arrangement is intended to prevent Thai taxpayers from having to cover unpaid medical expenses incurred by foreign tourists receiving treatment at state hospitals.
The fee and its proposed insurance component remain subject to the consultation process.
Extra cover for high-risk activities
The second tier would require tourists taking part in high-risk activities to purchase additional insurance.
Activities could include scuba diving, rock climbing and bungee jumping. Tourists would buy the supplementary cover at the attraction or activity site through a QR-code system provided by the local operator.
Under the proposal, responsibility for purchasing the insurance would shift from the activity provider to the individual tourist.
The level and price of cover could vary according to the risk associated with each activity.
Liability insurance for rented vehicles
The third tier would cover third-party liability arising from vehicles or equipment operated by tourists themselves.
Foreign visitors could be required to purchase additional insurance when renting and driving a car, motorcycle or jet ski, or when operating a drone.
The insurance would cover their potential liability if they caused an accident, property damage or injury to another person.
Weerasak said the system could also formalise employment within tourism supply chains. Staff operating attractions or supervising activities could become legally registered insurance agents, earning commission income and entering the tax system.
The arrangement could give the government more accurate information about the number of people employed throughout the tourism industry.
Current estimates broadly place tourism-related employment at about four million people, but Weerasak said cooperation with insurance companies would allow the authorities to produce clearer and more measurable data.
The approach would follow Suphajee’s preference for policies whose results could be calculated and assessed through statistical and scientific methods.
Overseas insurers could send patients to Thailand
Weerasak also proposed agreements with foreign insurance companies under which their customers could travel to Thailand for medical examinations or treatment through arrangements involving Thailand’s social-security system.
The scheme would target people facing high medical costs or long waiting lists in their home countries.
Thailand could offer shorter waiting times and more competitive prices, while the overseas insurance companies would pay the treatment bills rather than Thailand’s social-security funds or taxpayers.
Weerasak said the proposal could attract new groups of international customers to Thailand’s medical and wellness sectors.
Travellers could view the package as good value because they would receive medical treatment while also having an opportunity to take a holiday, potentially at a total cost similar to that of treatment alone in their home country.
The wider proposal therefore extends beyond collecting a tourism fee. It seeks to create a system in which basic protection is provided to all foreign arrivals, higher-risk activities carry appropriate additional insurance and tourists are financially responsible for accidents involving vehicles or equipment under their control. - The Nation/ANN
