A Russian man was arrested on Thursday for allegedly running an unlicensed 83-room hotel on Patong beach, Phuket. The arrest was made after officials inspected the property on Phangmuang Sai Kor Road, uncovering its operation through a Thai nominee. This action is part of efforts to curb illegal foreign-run businesses and preserve local tourism integrity.

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Authorities were alerted by complaints concerning foreign investors illegally managing accommodations in the region. Deputy Governor Rungruang Thimabut led the inspection, revealing that the hotel, aimed at attracting foreign tourists via online platforms, lacked the necessary licensing. The property was allegedly owned by a Russian national who used a Thai individual’s name to lease the building.

The arrested Russian faces charges for running a hotel business without appropriate documentation, although his identity has not been publicly disclosed. Officials continue to probe into the use of Thai nominees as intermediaries for foreign ownership, a practice that undermines local business ownership regulations.

Rungruang emphasized the importance of protecting Thai business interests, stating that such operations harm local livelihoods and tourism industry standards. He also highlighted the potential legal consequences for Thai nominees involved in these schemes, including revocation of company registrations.

Further investigations are expected to determine the extent of legal violations and any additional parties involved. Authorities reiterate their commitment to enforcing regulations that safeguard the rights and businesses reserved for Thai nationals, reported Bangkok Post.

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  Adapted by ASEAN Now · Bangkok Post · 13 Mar 2026

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IN all illegal foreign businesses are Thai people involved, and I am wondering what will happen with them, as with potential legal consequences is meaning in fact nothing.. the foreigners are arrested, fined, banned and/or get jailtime, but the Thais who are involved are probably free to go on...or with a small fine/ or brown envelope...In fact they should get the same punishments as the foreigners, but there was already a discussion last week about double standards.

1 hour ago, ikke1959 said:

IN all illegal foreign businesses are Thai people involved, and I am wondering what will happen with them, as with potential legal consequences is meaning in fact nothing.. the foreigners are arrested, fined, banned and/or get jailtime, but the Thais who are involved are probably free to go on...or with a small fine/ or brown envelope...In fact they should get the same punishments as the foreigners, but there was already a discussion last week about double standards.

Following a number of previous incidences such as this one, it has been reported several times that not only the foreigners are prosecuted but also the Thai nominees and the agents who set up the companies. If you actually have evidence of the double standards that you claim, maybe you could be specific about them?

The penalties for this are just not severe enough to stop it happening.

A crazy suggestion to make those involved think twice....Immediate remand for the nominee and the foreigner until all monies earned from the business by both parties are forfeited, this secures their release and then the normal process takes over.

1 hour ago, WHansen said:

The penalties for this are just not severe enough to stop it happening.

A crazy suggestion to make those involved think twice....Immediate remand for the nominee and the foreigner until all monies earned from the business by both parties are forfeited, this secures their release and then the normal process takes over.

Crazy indeed, absolutely crazy. Incarcerate them and confiscate their assets without any legal process giving that authority? Nuts.

There are many hotels in Thailand that are operating without papers... All to prevent tax. A good and effective registrationsystem, and control, could do miracles

18 hours ago, ikke1959 said:

IN all illegal foreign businesses are Thai people involved, and I am wondering what will happen with them, as with potential legal consequences is meaning in fact nothing.. the foreigners are arrested, fined, banned and/or get jailtime, but the Thais who are involved are probably free to go on...or with a small fine/ or brown envelope...In fact they should get the same punishments as the foreigners, but there was already a discussion last week about double standards.

Maybe it's 3 or 4 random Thais paid 300 baht each for using their names, they have no idea or the consequences for that.

Just think about potential investment in Thailand, jobs created for locals, taxes raised for the government and possible increases in standards IF foreigners were legally allowed to own businesses without having to create nominees or joint ventures.

Shocking....would never think that this would be going on here in LOS.

Makes me wonder about the condo owners in Thailand that is based on thai nominees..maybe their next.!

On 3/14/2026 at 12:18 PM, ikke1959 said:

There are many hotels in Thailand that are operating without papers... All to prevent tax. A good and effective registrationsystem, and control, could do miracles

about as much of a chance of that happening as there is the chance of traffic laws being followed

1 hour ago, Luuk Chaai said:

about as much of a chance of that happening as there is the chance of traffic laws being followed

But as you know, They are in need of money, but if the Government and institutions did their job much more tax could be collected

1 hour ago, ikke1959 said:

But as you know, They are in need of money, but if the Government and institutions did their job much more tax could be collected

If the police, government and institutions did their job, etc..

Sorted it for you