Blog > Tourist Taxes in Top Asian Destination Countries.

Tourist Taxes in Top Asian Destination Countries.

Abimbola Omotere & Agnes Oyedokun | Monday, 24 August 2022

It's no secret that most of the countries in Asia are quite cheap to visit, but housing and transportation can be pricey. You may not know the cost of all these extras you encounter when visiting. This article will discuss the tourist taxes in the top ten Asian countries, including Thailand, Japan, and China.

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Tourism is one of the growing sectors worldwide that play an essential role in boosting a nation's economy; also a good source of employment opportunities and income. Tourist taxes are fees frequently levied indirectly through lodging providers or travel agencies and are primarily targeted at overnight guests.

Why Tourist Taxes?


The tourism industry has been striving to recover in the face of limitations and closures, and some countries have turned to adopt tourist taxes in 2022. Countries that had mainly relied on tourism before the COVID-19 epidemic started to struggle when the pandemic started. For instance, Thailand declined yearly tourist numbers from 40 million in 2019 to barely 200,000 in 2021. Nearly all of that significant source of livelihood for people has been destroyed.

Another potential cause of tourist taxes is over-tourism. A growing, global middle class, the advent of social media, and low-cost travel are just a few of the factors fueling our desire to travel—as well as the growing efforts to discourage it.

Collecting tourism income taxes is not a complicated process, and given that they may also be adjusted easily for kinds of travelers and the benefits they bring, or for peak and off optimum seasonality, it's clear that some local authorities have seized on them within the solutions to over tourism and economy fall.

Tourists Taxes in Top Asian Destination Countries.

Some local authorities have seized on tourism taxes as a part of the solutions to over-tourism and the declining economy, given how easily they can be adjustable for several types of travelers and the extensive benefits they bring for peak and off-peak seasonality.

China

In China, most hotels impose a 15% "service fee." In reality, the "service charge" comprises a 5% business tax and a 10% service charge, which they publish as one sum to simplify things.

China began levying a 10% service fee and a 6-9% VAT on May 1, 2016.

Thailand

Thailand intends to charge foreign visitors a 300 Baht ($9) fee to enhance tourist attractions and provide accident insurance for foreigners who cannot bear expenditures on their own. No exemptions, not even your work permit or diplomatic status, will help.

To fund the development of tourist sites and foreigners' accident insurance, Thailand intends to charge foreign visitors a fee of 300 Baht ($9). The idea would take the form of a 300 Baht fee that will be added to your inbound airfare and is expected to go into effect in Q4 of 2022.

After purchasing your ticket, you will be taken to another screen where you can pay the fee, which will be required starting in August or September. Although paying 300 Baht won't break the bank, travelers to Thailand must possess more travel documents, including a printed payment receipt as proof of the tax.

Japan

In January 2019, Japan started collecting a "Sayonara" fee, which costs each visitor 1,000 yen, or $9.25. (290 baht). Regardless of nationality, the price is included in all air or marine tickets purchased by international visitors. When leaving Japan, travelers must pay €8, or around Rp130,237.

Everyone leaving the country is subject to the new departure tax, albeit there are several exclusions. Individuals who are exempt from paying the tax include members of the crew or pilots of marine vessels or aircraft, travelers in transit who will leave Japan within 24 hours of disembarking, travelers forced to stop in Japan due to bad weather, travelers under the age of two, ambassadors from other countries sent on diplomatic missions in Japan, and state guests.

Tax is added to your ticket price, and you do not have to make any additional payments. Therefore, the departure tax has already been paid if you purchased a plane ticket. You must pay the tax directly to the nation if you leave Japan on a private jet or another vehicle without an airline.

India

Goods and Services Tax is referred to as GST. This indirect tax was created to take the role of several other indirect taxes, including the value-added tax, service tax, purchase tax, excise duty, and others. In India, GST is assessed on providing specific goods and services. In order to collect tax, GST is split into five taxation slabs: 0%, 5%, 18%, 28% and 12%. Petroleum products, rummy drinks, and electricity are not taxed under the GST but are taxable separately by the state governments. You can learn more about GST here.

Indonesia

Only Bali is subject to the Indonesian tourist tax. About 80% of Bali's economy is based on tourism. According to the FCO, 360,000 Britons travel to Indonesia each year; this figure may rise due to the recent start of direct flights from Heathrow to Bali. Bali is the most recent tourist destination to consider a tourist tax, following Venice, Edinburgh, and Japan.

According to a new rule passed in 2019, international visitors must pay a $10 fee to support initiatives to protect the environment and Balinese culture.

Nepal

In addition to the city's already-existing tourist tax, Amsterdam added a new tax on tourist lodging, including vacation rentals, to help manage the inflow of visitors.

A "Toeristenbelasting" (or tourist tax) is levied in almost all Dutch municipalities. Each municipality sets its price, which may be a percentage of the room's cost or a fixed sum. Amsterdam introduced a €3 per person per night fee, a 7% hotel tax per room, and a 10% per night fee for users of peer-to-peer accommodation websites. Learn more about Toeristenbelasting here.

Jordan

By taking advantage of "TAG Tax-Free," tourists, non-residents, and visitors to the Hashemite Kingdom of Jordan can shop tax-free. Suppose you are a tourist or non-resident, Jordanian or international, and you spent more than 183 days outside the Kingdom in the previous year. In that case, you are eligible for a tax refund when you depart Jordan.

The purchases must be from listed shops in the tax-free network. The invoice or receipt should be original and stamped with your business from the shop.

The value of the tax should not be less than 50 JD. Purchases must be presented with invoices to the customs officer upon departure and a tax-free form stamped as 'Seen On Departure' by the Customs Officer.

After completing your papers with the Customs Department, you should return the refund form to the TAGI Tax-Free window. If your documents meet all the refund conditions and the tax value is between 50 and 500 JD, the value will be refunded immediately.

Vietnam

Flying out of Hanoi, Saigon City, or Danang is permitted, and you can get reimbursed for the VAT you paid on invoiced purchases that cost at least 2.000.000 VND ($100) and were made within the previous 30 days. There will be a service fee of up to 15% of the VAT refund, and some goods, especially those whose export is prohibited, are not eligible for the refund. Tourists who have passed immigration can get their refunds at those desks in the departure office in dollars or other currencies.

Hanoi and Ho Chi Minh City have a $14 and $12 foreign departure tax, respectively. The cost of the airfare frequently includes domestic exit taxes.

South Korea

Any non-resident of Korea, as well as any foreigner not staying in Korea for six months or longer, Koreans residing abroad for two years or longer, or aliens not staying in Korea for about three months or longer after arriving in Korea, as well as any non-resident who does not have any income in Korea or engaged in any business activity, are eligible for a sales tax refund. The standard VAT rate in South Korea is 10%. Learn more about sales tax refunds in Korea here.

The Philippines

According to Presidential Decree (PD) 1183, a travel tax is a charge levied by the Philippine government on those who are leaving the country, regardless of the location where the airline ticket was issued or the method or location of payment.

A 5% tax is added to the hotel, lodge, and club rates that are less than Rs 1,000. The tax rate will be 12% for hotels and lodges with rates between Rs 1,000 and Rs 2,500 and 18% for clubs with rates between Rs 2,500 and Rs 5,000.

Now that you know about tourist taxes in the top Asian Destination Countries, you might want to check out the rest of our articles on lodging and property management here.