Pattaya nominee business concerns put under scrutiny

Concerns over foreign nationals using Thai nominees to run businesses and hold property in Pattaya have prompted Chonburi officials to promise tougher enforcement against unlawful investors of any nationality.

The issue was examined by The Truth Investigation TV programme on Thursday, September 10, which questioned whether Thailand had become a base for transnational criminal gangs and foreign mafia networks. It said the problem extended beyond Pattaya and could spread to other major tourist destinations.

The report alleged that some so-called "grey" foreign nationals had entered Thailand to operate businesses and acquire real estate through Thai nominees. It also said some had become influential figures or members of foreign mafia networks, while encroaching on state and forest land.

Claims focus on Pattaya's Indian investment

The programme portrayed Pattaya as a city whose former mix of international visitors, including Western tourists seen as high spenders, had changed significantly. It said Indian tourists now made up many of those seen on the streets.

However, it stressed that Indian visitors themselves were not the problem and said their spending power was no lower than that of European or American tourists.

Its concern was the reported growth of Indian-owned capital in Pattaya's commercial areas, particularly in service and entertainment businesses. The news team visited Pattaya Second Road and Walking Street, where it reported that most restaurants and entertainment venues were owned by Indian businesspeople, with staff soliciting customers on the streets.

Yodchai Puengporn, a Chonburi MP for the People's Party, said Pattaya had been among the first destinations for foreign nominee investment. He described the figures as alarming and said Indian capital was entering many service and entertainment businesses, while investors were buying properties, buildings and homes to cater to visitors from the same country.

Yodchai compared the situation with China's former "zero-dollar tour" model, where tourism spending did not genuinely reach the Thai economy. He also cited pressure on Thai businesses, unlawful migrant employment and large-scale environmental damage.

Officials cite checks and lawful investment

Issara Charoenchasri, deputy governor of Chonburi, acknowledged that Pattaya was driven by foreign investment. He said the province welcomed investors from anywhere in the world provided they operated legally, held work permits and had passed immigration checks.

He estimated Indian capital accounted for about 10% of investment in the area. But he said authorities would take strict, decisive action against any investor found deliberately evading the law or using Thai nominees, not only Indian investors.

Government agencies were continually coordinating inspections of migrant labour and business operations, Issara said, to balance "the economy and security". He urged operators to use Thai law as their principal guide in protecting national and Thai interests.

Yodchai urged the government to address Thailand's tourism image urgently before Vietnam took market share and attracted high-quality tourists. He said Thailand was having to receive several times more visitors to generate the same revenue.

Picture courtesy of The Nation

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12 September 2026