No, it's a classic signal of Thai overreaction. The Thais are punishing foreigners for the misbehavior of foreigners. The foreigners in Pai just happen to be Jewish in this instance.
"....Police General Kitrat Panphet, has directed police forces across the nation to heighten surveillance of foreign nationals amid escalating concerns over public order and safety. This new measure, announced on 17 February, stems from reports of foreign visitors’ conduct that disrupts social harmony, violates public morals, and potentially damages Thailand's reputation.
and
"The move follows troubling incidents, notably in Pai, Mae Hong Son, where local businesses recently refused service to Israeli nationals. This decision arose after reports of inappropriate behaviour by some Israeli tourists, who allegedly verbally abused medical staff and threatened property damage at a local hospital.
Adding to the concern, a Facebook video depicting intoxicated foreigners harassing female restaurant owners went viral, fanning online safety fears."