Japan And India Joins Vietnam, Malaysia, Singapore, Taiwan, And Other Countries In Asia In Facing Heightened Travel Challenges As Thailand Raises Airport Tax By Fifty Three Percent

Published on December 7, 2025

Japan and India joins Vietnam, Malaysia, Singapore, Taiwan, and other countries in Asia in facing difficult travel challenges as Thailand implements a 53% hike in its Passenger Service Charge (PSC) for outbound international flights. This significant increase in the airport tax, set to take effect in early 2026, will directly impact travelers from high-volume countries, including major Asian markets like China, India, and Japan. The rise in fees is part of Thailand’s strategy to fund much-needed infrastructure upgrades, particularly at Suvarnabhumi Airport, but it also raises concerns about higher travel costs for passengers, especially those flying on budget airlines. The new fees will add approximately 390 baht (US$12) to each outbound flight, significantly affecting travel budgets and potentially discouraging budget-conscious tourists from visiting Thailand. The hike in charges is expected to be particularly impactful for travelers from neighboring countries, who frequently make short-haul flights to Thailand, and will add further pressure on already rising travel costs across the region.

Thailand’s Civil Aviation Authority has set the stage for significant changes in international air travel. With the recent approval of a 53% hike in the Passenger Service Charge (PSC) for outbound international flights, the country is introducing new challenges for travelers from various parts of Asia, including Japan and India. The increase will directly affect passengers flying out of major airports, including Bangkok’s Suvarnabhumi and Don Mueang, and several other regional hubs. The move, while aimed at funding infrastructure upgrades and improving passenger services, raises concerns about the impact on travel costs, especially for high-volume travelers from countries like China, India, Japan, and Singapore.

The 53% Increase: What It Means for Travelers

Effective early in 2026, the new PSC will see an increase of 390 baht, raising the tax from 730 baht (approximately US$23) to 1,120 baht (approximately US$35) per outbound passenger at Thailand’s six Airports of Thailand (AOT) facilities. The six affected airports include:

• Suvarnabhumi Airport (BKK)
• Don Mueang Airport (DMK)
• Chiang Mai Airport (CNX)
• Chiang Rai Airport (CEI)
• Phuket Airport (HKT)
• Hat Yai Airport (HDY)

This increase is part of Thailand’s efforts to modernize its airport infrastructure, especially to tackle the congestion issues at Suvarnabhumi Airport. With the revenue generated, the Airports of Thailand (AOT) plans to fund several upgrades, including a new South Passenger Terminal at Suvarnabhumi. This terminal aims to ease congestion at the country’s busiest airport, allowing for smoother passenger flow, enhanced services, and improved facilities.

Smaller Increases at DOA Airports

While the hike at AOT airports is more significant, smaller increases have been approved for Department of Airports (DOA) facilities. Airports like Krabi, Ubon Ratchathani, and Trang will see smaller increases in their PSC fees:

The increase at these airports, though smaller, still signals a shift in the broader pattern of rising travel costs across the country.

Why the Hike? The Revenue and Investments

The rise in the Passenger Service Charge is designed to address the increasing demands placed on Thailand’s aviation infrastructure, particularly as the country continues to see robust passenger growth. The AOT anticipates generating an additional 10 billion baht (US$313.5 million) annually from the increase. This revenue will be crucial for financing much-needed infrastructure projects, including the construction of the new South Passenger Terminal at Suvarnabhumi Airport, which is expected to alleviate congestion and enhance the overall passenger experience.

Thailand is projecting around 35 million international passengers annually to be impacted by the hike. This volume of travelers will contribute significantly to the financial goals set by the AOT, enabling Thailand to stay competitive as a regional aviation hub while improving its services.

The Impact on Asian Travelers

The increase in the PSC is set to impact travelers from all around the world, but it will disproportionately affect high-volume travelers from neighboring Asian countries. As Thailand remains a key destination for travelers from countries like China, India, Japan, and Singapore, the hike will have significant implications on travel budgets and overall costs for outbound flights from Thailand.

Affected Countries

Countries with significant travel flows to and from Thailand will feel the impact of this increase. While all international passengers are affected, countries in Asia, particularly those with frequent short-haul flights, are likely to see the most significant impact. Here’s a breakdown of some of the most affected countries:

Countries such as China, India, Singapore, and Malaysia are likely to feel the brunt of this fee increase, as travelers from these nations frequently travel to Thailand for both leisure and business purposes. Many of these countries already face rising airport taxes domestically, and the Thai hike could add to their overall travel burden.

Impact on Airlines and Passengers

The ripple effect of this increase will extend to airlines, especially those that rely on high volumes of international passengers from affected countries. Airlines such as Thai Airways, Singapore Airlines, and low-cost carriers like AirAsia are expected to pass on the increased charges to passengers. This means passengers will likely see ticket prices rise as airlines incorporate the extra PSC costs into their fare structures.

In particular, budget travelers may feel the pinch, as the additional tax adds a significant cost to what is already an affordable travel option. High-end tourists, however, may be less affected by the increase in fees. As airlines adjust their pricing models, passengers can expect higher ticket prices, particularly for long-haul flights departing from Thailand.

Broader Industry Reactions

The airport tax hike has stirred mixed reactions within the aviation and tourism industries. On one hand, the Airports of Thailand has received positive stock upgrades from major financial institutions, such as JPMorgan, which upgraded AOT’s stock rating in light of the higher fees. This is a clear indication that financial analysts believe the increase will result in substantial revenue for the Thai airport operator.

On the other hand, airline associations and travel agents are concerned about the potential negative effects on tourism, particularly the low-cost travel segment. Travelers from key Asian countries such as India, Vietnam, and the Philippines, who often book budget-friendly travel packages, may reconsider their travel plans due to rising costs.

For airlines like Thai Airways, the PSC hike is expected to result in increased operational costs, potentially affecting their profitability. However, national carriers are also likely to benefit from the boost in airport revenues, which could fund infrastructure improvements that enhance the passenger experience.

What This Means for Future Travel Trends

Looking ahead, the PSC hike aligns with broader trends in the aviation industry, where airports and airlines are increasingly focused on upgrading infrastructure to accommodate growing passenger numbers. With the rise in fees, there may also be a shift towards more expensive travel options as passengers seek out premium services to offset the additional costs. The hike in Thailand could be the first of many as airports across Asia look to modernize and improve their services in line with the growing demand for air travel.

Additionally, the rise in fees could make regional destinations outside Thailand more attractive to budget-conscious travelers. Countries like Vietnam, Malaysia, and Indonesia could see a slight increase in travel demand as travelers seek out alternative destinations with lower taxes and fees.

The 53% increase in the Passenger Service Charge at Thai airports marks a significant shift in the region’s aviation landscape. While the increase is designed to help fund vital infrastructure upgrades, it poses a challenge to travelers, particularly those from high-volume markets like China, India, and Japan. Airlines, especially budget carriers, are likely to pass the cost onto passengers, making travel more expensive for some. However, the revenue generated by the tax hike will allow Thailand to make much-needed upgrades to its airports, including the expansion of Suvarnabhumi’s terminal facilities. As travelers, airlines, and governments adjust to these changes, the regional aviation sector is likely to continue evolving, balancing infrastructure investment with the demands of cost-conscious travelers.

Japan and India join Vietnam, Malaysia, Singapore, Taiwan, and other countries in Asia in facing difficult travel challenges as Thailand’s 53% hike in airport taxes raises travel costs. The increase, set to take effect in early 2026, aims to fund airport infrastructure upgrades but adds financial pressure on travelers, especially from high-volume Asian markets.

This decision may cause a short-term disruption in travel patterns, but it is also an essential step toward ensuring that Thailand remains a competitive and modern hub for international air traffic in the years to come.