Phuket hotels targeted in illegal business checks

Thai authorities have inspected and arrested operators at three Phuket hotel sites accused of operating without construction permits and hotel business licences, as the government widens its crackdown on illegal hotels and suspected nominee ownership.

The inspections, announced on 24 July 2026, followed instructions from Prime Minister and Interior Minister Anutin Charnvirakul for agencies to tackle influential figures, foreign "grey capital" groups and unlawful business operations.

Ploythale Laksmi Saengchan, deputy government spokeswoman, said the Interior Ministry had been told to work with relevant agencies and monitor provincial and local officials responsible for checking whether hotel businesses comply with the law.

Three hotels found without permits

Polphee Suwanchawee, Deputy Interior Minister, led a Department of Provincial Administration task force and other agencies to inspect three target properties in Phuket.

The hotels had 200 rooms, 240 rooms and 45 rooms respectively. Officials found that all three lacked both construction permits and hotel operating licences.

The two larger sites had reportedly received permission to be built as residences or condominiums, but were instead being used as hotels.

Authorities also made advance online bookings and said the evidence clearly showed the properties were marketed mainly to European and other foreign guests. They said no Thai customers were found.

Nominee arrangements under scrutiny

Further checks found what officials described as irregularities involving nominee structures intended to evade Thai law.

In some cases, foreigners held 49% of shares while Thai nationals held 51%. At certain properties, Thai nationals owned the land or property but had leased it to Chinese nationals who were operating the business without hotel licences.

Ploythale said the Department of Provincial Administration, Interior Ministry, Royal Thai Police, Commerce Ministry and Department of Special Investigation would expand their investigation into foreign hotel networks, even where shareholding appears to meet legal requirements on paper.

The agencies will also conduct detailed checks of financial transactions connected to the businesses.

Officials face action if linked

"If state officials are found to be involved, they will face decisive legal action without exception," Ploythale said.

She said the government policy was to "close the name, look at the behaviour" - meaning that authorities would focus on actual conduct rather than formal names or ownership arrangements.

The government, she added, would not allow nominee capital groups, scam gangs or grey businesses to harm Thai operators running legitimate businesses.

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25 July 2026