Thailand Cracks Down on Foreign Tour Operators, 40 Licences Revoked

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Picture courtesy of Sumit Chinchane, Unsplash

 

In an assertive move to safeguard its tourism industry, Thailand has intensified investigations into foreign-owned businesses and nominee operations in popular tourist hotspots. The Ministry of Tourism announced yesterday that it had revoked 40 tour operator licences in 2024, underscoring its commitment to uphold regulations that ensure such businesses are predominantly Thai-owned and operated.

 

Speaking on the matter, Natreeya Thaweewong, the permanent secretary of the Ministry of Tourism and Sports, highlighted the ongoing efforts to root out unlawful operations. Triggered by concerns from a former Phuket Member of Parliament, the ministry tasked the Department of Tourism with scrutinising business practices, ensuring compliance with the Tour Business and Guide Act of 2008. This legislation mandates that Thai nationals hold majority ownership and operational authority in tour companies, with foreign shareholders capped at 49%.

 

The crackdown has been particularly focused on high-tourism areas such as Phuket, Chiang Mai, Pattaya, and Koh Samui. In Phuket, tourism officials and the Tourist Police, with support from local associations, have been closely monitoring operations in notable locations like Wat Chalong and the Old Town. They actively seek out foreign operators potentially exploiting nominee loopholes.

 

 

 

Under the Standard Operation Procedure Agreement (SOPA), a joint task force involving multiple agencies, including the Department of Special Investigation and the Tourist Police Bureau, has been formed. This collaboration serves to meticulously investigate high-risk applicants and assess irregularities in shareholder structures.

 

Recent audits have revealed some companies modifying their composition to sidestep ownership laws. Notably, 15 licences in Phuket were annulled after discoveries of equal foreign and Thai board members. Additional findings indicated that some Thai nationals were repeatedly used in official capacities to ostensibly maintain Thai control.

 

Despite these significant revocations, the Ministry of Tourism and the Department of Tourism plan to intensify efforts. Their strategy includes close cooperation with both governmental and private sectors to enforce legal operations and maintain international safety standards within Thailand's lucrative tourism industry, reported The Thaiger.

 

-- 2025-03-17