Rising aviation service fees in Thailand, including airport charges and the proposed 300-baht tourism tax, could potentially hinder airlines already posting thin profit margins, derailing efforts to restore tourism to pre-pandemic levels, according to the International Air Transport Association (IATA).
Sheldon Hee, regional vice-president of Asia-Pacific at IATA, said Thailand is expecting many aviation charges either this year or in coming years, based on recent discussions with aviation stakeholders and Thai carrier members.
These include enforcing the 300-baht tourism tax, Airports of Thailand’s (AOT) plan to raise the passenger service charge from 730 baht per person, and the Civil Aviation Authority of Thailand’s (CAAT) proposal to hike international travel charges from 15 baht per person.
Aeronautical Radio of Thailand Ltd is also considering increasing air navigation charges for airlines, while the Immigration Bureau is mulling higher overtime aircraft inspection fees, he said.
“These charges could potentially increase costs for passengers visiting Thailand at a time when tourism seems to be weakening,” said Mr Hee.
Foreign arrivals to Thailand in 2025 total more than 25 million thus far, contracting over 7% year-on-year.
Airline profits remain low, as IATA forecasts a net margin of only 1.9%, or US$2.6 per passenger, in Asia-Pacific this year.
He said some of the charges could be passed on directly to travellers, or applied to airline operations, making it more difficult for the airlines to expand sustainably.
Thailand has historically attracted large numbers of leisure tourists, as well as price-sensitive customers, travelling on both low-cost and full-service carriers.
While the government has said it wants to target premium, high-spending travellers, if the goal is to restore tourism to pre-pandemic levels, volume and revenue needs to be balanced, said Mr Hee.
IATA is calling for stronger coordination between stakeholders and airlines so changes would not immediately create a burden on the industry, he said.
Commercial aviation posted a backlog of more than 17,000 jets in 2024, a record high, compared with 13,000 planes in 2019, according to the trade group. This means new aircraft deliveries could come well into the decade of the 2030s.
IATA data for August indicates international passenger market demand for Asia-Pacific airlines grew 9.8% year-on-year.
The capacity growth rate almost caught up, rising 9.5% year-on-year with a load factor of 85.1%.
Regarding the CAAT plan to eliminate the aircraft age limit to ease plane shortages, Mr Hee said an aircraft’s age profile should not trigger safety concerns, as long as it is well maintained and complies with international safety standards.
Last week, Deputy Prime Minister Thamanat Prompow said he would negotiate with AOT to reduce aircraft landing and parking fees at its six airports in order to boost international flights.
According to the Tourism Authority of Thailand (TAT), the country expects 80 new international routes in the fourth quarter from across Asia, the Middle East, Europe, and the US.
Under the “Thailand Summer Blast” stimulus, Thailand is expected to receive 731 chartered flights from China, including Macau, noted the TAT.