The ministry said the amount is sufficient to cover its target of 35mn foreign arrivals this year, as average annual claims during the past five years did not exceed this amount, reports Bangkok Post.
Tourism and Sports Minister Sudawan Wangsuphakijkosol said the government views the tourism industry as a major revenue driver, while the ministry wants to provide a safety assurance for foreign tourists.
As of Feb 11, there have been 4.3mn foreign arrivals, which is on track to reach the target of 35mn by the end of the year, said Ms Sudawan.
The B50mn was allocated from a central budget and will be used to compensate foreign visitors on a case-by-case basis during their travel in Thailand from Jan 1 and Aug 31 this year, she said.
The maximum coverage is B1mn per person in the event of death and B300,000 per person for permanent organ loss, loss of sight or permanent disability, with a maximum of B500,000 for medical expenses.
Tourists are eligible for the coverage if the incidents do not stem from their carelessness, intention for illegal activity, or their own risky behaviour. They must be visiting Thailand with a tourist visa or for the purpose of tourism.The insurance programme covers a vacuum period as the Foreign Tourists Assistance Fund expired.
The fund was dissolved two years ago and a new tourism fee is expected to be collected for tourism insurance and to develop tourism attractions.
The new fee scheme was supposed to charge B300 for arrivals by air and B150 for arrivals by sea and land, but it has been postponed indefinitely.
Ms Sudawan said although the ministry does not plan to cancel the 300-baht tourism levy, it will not implement it during the next 5-6 months as the ministry aims to ramp up the number of arrivals and tourism spending.
Mongkon Wimonrat, the ministry’s deputy permanent secretary, said the budget is sufficient as the annual average compensation should not exceed this amount.
From fiscal 2018 to fiscal 2022, the highest number of claims was in 2018 with 103 cases worth B52mn. Mr Mongkon said the high amount was attributed to the boat that capsized off of Phuket.
In 2019, which set the record for tourism arrivals, the number of claims recorded was 24 cases worth B6 mn.
He said the majority of foreign tourists normally buy their own travel insurance before visiting Thailand. Group tourists are required to buy travel insurance under the Tourism Business and Guide Act of 2008. Only a small number of independent tourists do not buy travel insurance, said Mr Mongkon.
The scheme requires tourists to pay their own medical expenses first, then offers reimbursement.
A Tourist Assistance Center operated by the Provincial Office of Tourism and Sports will help tourists claim expenses within 15 days, with compensation expected within another 15 days, he said.