THAILAND – The Thai government moved to raise a series of aviation and tourism charges, a plan that industry officials warned could push up travel costs for tourists and squeeze already thin airline margins.
Fee rises target travellers
Airports of Thailand proposed raising the passenger service charge, currently 730 baht, while the Civil Aviation Authority of Thailand planned an increase in the international travel levy of 15 baht. Officials also discussed introducing a tourism tax of 300 baht. The Aeronautical Radio of Thailand and the Immigration Bureau were reportedly weighing higher navigation and inspection fees as well.
Taken together, the measures would directly raise the cost of flying to Thailand. Industry sources said budget-conscious tourists and families would feel the impact most. One tourism insider warned that ‘the additional fees hit travellers with tight budgets the hardest’, saying the increases risked making short-haul and low-cost trips notably more expensive.
Airlines under pressure
Airlines operating in the region faced fresh financial pressure from the proposed levies. The International Air Transport Association (IATA) cautioned that carriers’ already slim profit margins could shrink further. IATA said average profit margins for airlines in the Asia-Pacific were around 1.9 percent, roughly equivalent to $2.60 per passenger.
‘Every additional charge limits airlines’ ability to open new routes or offer cheap tickets,’ Sheldon Hee, IATA’s vice president for Asia-Pacific, said. He added that higher operating costs could force carriers to cut routes or raise fares, reducing choice for travellers.
Tourist numbers already slipping
Thailand recorded more than 25 million foreign visitors this year, but that was about a 7 percent drop compared with the previous year. Officials had been targeting a full recovery to pre-crisis tourism levels, but industry figures warned the new fees could deepen the decline.
‘Thailand benefits from a mix of luxury and budget travellers; that balance is now at risk,’ said a tourism sector representative. With higher charges, budget tourists and families might choose alternative destinations that remain cheaper to visit.
New routes and promotions seek to blunt the hit
Authorities sought offsetting measures to support arrivals. The Tourism Authority of Thailand announced plans for 80 new international routes in the fourth quarter, and under a ‘Thailand Summer Blast’ initiative expected 731 charter flights from China, including many from Macau. The moves were designed to shore up inbound traffic, particularly from the Chinese market.
But aviation experts cautioned that route expansion alone could be insufficient. ‘New connections help, but they won’t fully compensate if total travel costs keep rising,’ a senior airline official said.
Government talks and possible relief for carriers
Responding to industry alarm, Deputy Prime Minister Thamanat Prompow said the government would negotiate with Airports of Thailand to lower landing and parking fees. The aim was to ease the burden on carriers and encourage more services into the country.
IATA and other groups urged closer cooperation among government, airports and airlines. ‘Only together can Thailand preserve its competitiveness,’ an IATA spokesman said.
Capacity constraints complicate recovery
The industry faces a separate structural challenge: a global backlog of aircraft deliveries. More than 17,000 new planes were on order worldwide, with deliveries stretching into the 2030s, limiting carriers’ ability to expand capacity quickly. Meanwhile, passenger demand in the Asia-Pacific had risen— IATA reported about a 9.8 percent increase— but supply growth lagged.
Analysts said those capacity shortages could add upward pressure on ticket prices in the months ahead, compounding the effect of higher airport and tourism charges.
Outlook
Thailand’s plan to raise fees came at a delicate moment for its tourism-reliant economy. The mix of proposed levies, falling visitor numbers and global aircraft delivery delays presented a test for policymakers. Whether concessions on airport charges and a wave of new routes would be enough to restore momentum remained uncertain. The next few months were likely to show whether the country could maintain appeal for price-sensitive travellers while protecting airline viability and the broader tourism recovery.