Tourism is a crucial sector in Southeast Asia's second-largest economy and contributed about 12% of gross domestic product before the pandemic.

"Fees won't be collected from foreigners with work permits and border passes," said Tourism Minister Phiphat Ratchakitprakarn, adding that Thailand expects 25 million tourist arrivals this year.

The proposal was first considered last year and is subject to cabinet approval.

Tourism spending is forecast to reach at least 2.38 trillion baht this year, said Phiphat.

In 2019, Thailand welcomed nearly 40 million arrivals.

($1 = 33.4400 baht)

(Reporting by Panarat Thepgumpanat and Chayut Setboonsarng; Editing by Ed Davies)