Government officials in Pattaya conducted a crackdown on illegal foreign-nominated businesses and bogus travel agents, resulting in the revocation of tour operator licenses and summoning of directors for further investigation.
The unified effort on April 26 involved multiple government agencies, including the Department of Tourism, Department of Business Development, Department of Special Investigation, Tourist Police Division, and Immigration Police Office. Ten locations in Pattaya were targeted to address concerns within the tourism industry regarding businesses employing Thai nationals as nominees to circumvent restrictions on foreign ownership.
Authorities discovered widespread abuse of nominee shareholder arrangements in the tourism sector, with many businesses using Thai nationals as intermediaries to obtain licenses while foreigners held majority shares exceeding the legal limit of 51%. Irregularities were also found in registered tour companies, including discrepancies between licensed premises and actual operations, as well as engaging in activities beyond their permits.
As a result of the crackdown, three tour operator licenses were revoked, and directors of these companies were summoned for further investigation. One case revealed a business that had ceased operations entirely, highlighting the severity of the violations.
This enforcement action underscores the government’s commitment to transparency and regulatory compliance in the tourism industry. Authorities have pledged to continue monitoring and enforcing regulations to uphold the sector’s integrity.