The Thai government has decided to radically transform the existing practice of issuing privileged multi-year visas for financially well-off foreigners. Already from 1.10.2023 will come into force updated rules, significantly increasing the cost of so-called VIP visas.
Will the cost of elite visas in Thailand increase from October 2023?
The State Corporation Thailand Privilege Card, which provides the opportunity to issue long-lasting privileged visas to wealthy visitors from other countries, has published information about the upcoming increase in cost from the beginning of October this year.
In order to have time to apply for a visa on the previous more loyal conditions, potential clients must submit the necessary documents by 15.09. Those who already have 5-year VIP visas can extend to 20-year visas at current rates if they meet the deadline of August 15.
Details of the new qualification requirements for VIP visas after October 1 are still being kept secret. However, it is already known about the planned significant increase in cost - possibly up to 900 thousand baht (about 25 thousand dollars) instead of the current 600 thousand for a 5-year visa and up to 5 million baht instead of 1.5 million for the 20-year version.
Members of the Thailand Privilege Card program, instead of direct benefits, will accumulate points similar to bonus points at banks or airlines. The longer the stay in Thailand and the more money spent, the higher the level of privileges. Such a model is unlikely to appeal to holders of relatively inexpensive 5-year visas, who previously enjoyed various benefits directly.
Possible implications of the changes for Thailand
In reforming the program, the authorities need to proceed cautiously in order to maintain Thailand's competitiveness in the battle to attract wealthy expats in the international arena. There is already an alternative in the form of a 10-year investment visa issued by the State Investment Promotion Board, but demand is still low as there are no official statistics.
Elite visas in different variants offer significant advantages and allow Thailand to compete successfully to attract wealthy foreigners. But none of the current programs so far provides for the issuance of residence permits or second citizenship, as in Indonesia, Cambodia or some Caribbean islands.
Raising the cost of VIP visas several times would make such bonuses as faster passport control, exemption from regular registration or a system of discounts clearly insufficient. What was considered 20 years ago as proof of financial solvency to obtain an elite visa is no longer relevant these days. When the program first began in 2003, the minimum fee was 500,000 baht (about $14,000). And participants were led to believe that they were truly unique and significant.
Accumulated problems
For a long time, the number of VIP visas did not exceed 2-3 thousand. A sharp interest arose during the covid pandemic, which demonstrated the convenience of free travel.
Today, there are already 30 thousand participants in various categories of privileged visas in Thailand, and more than a third are ethnic Chinese. The upcoming reforms are dictated by the interests of China and Asia, not Europe or America.
Some expats believe that statements about the upcoming tightening are just a tactical move to stimulate demand for visas before September 15. However, experts do not share this view.
It is obvious that Thailand's immigration policy is undergoing major changes. Recently, the deputy head of the national police announced the imminent abolition of the practice of annual unrestricted renewal of retirement visas.
Holders of questionable visas - part-time students or volunteers - already find it difficult to extend their stay in the country or obtain an alternative visa.
Another unresolved issue is the lack of a mandatory health insurance requirement for elite visas and annual pension visa extensions. And Cambodia is already creating a working group to introduce such a requirement for all foreigners staying in the country for more than 30 days.
And while Thailand's entry regime is much easier for ordinary visitors, wealthy expats will have to adapt to major changes in visa rules, however undesirable they may seem.
According to some experts, the reason for the sharp tightening of rules for elite visas is the Thai authorities' desire to limit the influx of ethnic Chinese into the country. Their share among VIP-visa holders has already exceeded one third, which raises fears among the local population.
In addition, a significant increase in prices for elite visas should compensate for the losses of the Thai budget due to the decrease in tourist flow during the pandemic. The government expects that rich foreigners will be willing to pay more for the privileges of a long stay in the country.
At the same time, many analysts warn of the danger of overly tightening the rules. This could prompt wealthy expats to seek more comfortable jurisdictions in other Asian countries. Therefore, the Thai authorities should carefully weigh each decision to keep their elite visas competitive in the global market.
Author of the article: Ekaterina Antonova
