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…
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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%.
