BANGKOK: Reflecting industry concerns, the boss of Thai AirAsia (TAA) yesterday warned that ticket prices inflated by the jump in excise tax on jet fuel will have a detrimental effect on domestic tourism. TAA chief executive Tassapon Bijleveld said passengers flying domestic flights are mostly of the leisure type and are price-sensitive.
“A 100- or 200-baht increase [in ticket price] will have a significant impact on their travel decisions,” he said. “If the government really wants to promote tourism, they have to seriously look at the…
Mr Tassapon was responding to Jan 25’s rise in the excise tax on jet fuel from 20 satang a litre to 4.89 baht. The increase has led Thai-registered airlines to pass on the burden to flyers, at 150 baht per flight leg on four major low-cost carriers and 200 baht on full-service airline Bangkok Airways starting from…
Mr Tassapon pointed out that a TAA air ticket on a domestic route, averaging 1,250 baht per leg, is now comparable to the fare for a flight to Cambodia, Laos, Myanmar or Vietnam.
According to the Tourism Authority of Thailand, domestic tourists last year increased by 4% from the previous year to 145 million, with tourist spending totalling 866 billion baht, up 8%.