Thailand Cracks Down on Foreign Tour Operators, 40 Licences Revoked

[snoop1130]

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

 

 

[Watawattana]

A good start but a long way to go I suspect.

[khunjeff]

14 hours ago, snoop1130 said:

The Ministry of Tourism announced yesterday that it had revoked 40 tour operator licences in 2024, underscoring its commitment to uphold regulations

 

That commitment would be clearer if they had investigated these issues before issuing the licenses...

[hotchilli]

15 hours ago, snoop1130 said:

This legislation mandates that Thai nationals hold majority ownership and operational authority in tour companies, with foreign shareholders capped at 49%.

But donating 100% of the set-up costs ?

[jippytum]

The  buisness operators could not  be approved at the outset without corrupt Thais helping them. 

[Emdog]

I would guess that the foreign operators stay in business because they provide better service than local firms? Areas like speaking the language(s), understanding different cultural norms/expectations, perhaps knowing something about the history etc of places they serve.... just a guess... what cha think?

[jcmj]

If they had decent multi language tour guides who spoke and understand the questions then there wouldn’t be a need for these foreign tour guides. It’s one thing to have it on your paperwork or CV, but quite different from actually speaking and understanding it. I know well to Many Thais that graduate in English and still can’t hold a conversation in English. Pass and no fail no  will be their own downfall. 

[JimHuaHin]

2 hours ago, jcmj said:

If they had decent multi language tour guides who spoke and understand the questions then there wouldn’t be a need for these foreign tour guides. It’s one thing to have it on your paperwork or CV, but quite different from actually speaking and understanding it. I know well to Many Thais that graduate in English and still can’t hold a conversation in English. Pass and no fail no  will be their own downfall. 

Regretfully, correct.

 

I note that in some countries, individuals who are working with foreign tourists are required to be at least competent in three languages.