Optimal Tourism Fee on Foreign Tourists in Thailand
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Abstract
The expansion of tourism sector can lead to positive effects and negative effects simultaneously. In order to cope with the negative effects, the tourism fee or tourism tax should be implemented. This paper aims to calculate the optimal level of tourism fee based on the concept of social welfare maximization. The results suggest that the optimal tourism fee rate lie between 0.3396 to 0.4501 percent. The optimal tourism fee range is 167.08 Baht to 221.14 Baht. The introduction of tourism fee will generate a net revenue of 7,465.17 billion Baht to 10,550.85 in next two years. It is recommended that (1) the allocation of net revenue from tourism fee be efficient to avoid the social welfare loss in the future and (2) other losses brought about by the implementation of tourism fee be accounted for as they may decrease its total revenue or make its collection unproductive.
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The articles published in the journals are the authors' opinions, not the opinion of the editorial team or administrative staff. The articles published is copyright of the Journal of Business Administration and Accounting, Khon Kaen University.
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