Senate urges crackdown on foreign-run tourism businesses
The Senate called on the government to intensify efforts against tourism businesses managed by local proxies for foreign citizens, aiming to shield local enterprises from unfair competition.
During a recent session, Senator Nantana Nantavaropas raised concerns about the difficulties Thai businesses face in competing with companies managed by nominees. Tourism and Sports Minister Sorawong Thienthong responded, revealing that ministry representatives have met with affected local operators to devise a tailored solution.
Foreign businesses run by local proxies pose a significant threat to the tourism sector, one of Thailand’s largest foreign exchange earners, according to Sorawong. He emphasised the necessity of eliminating foreign tour guides from tourist spots nationwide as an initial step.
Thai law mandates that only Thai nationals can operate tourism businesses. In companies with foreign shareholders, Thai shareholders must hold at least 51% of the shares.
To address the issue, the ministry will collaborate with the Department of Tourism, Department of Business Development, Department of Special Investigation (DSI), Tourism Police Bureau (TPB), and Immigration Bureau to investigate businesses suspected of using local nominees.
Many businesses in the tourism sector continue to struggle despite high demand for international travel, Sorawong noted, attributing the slow recovery to capacity constraints lingering from the Covid-19 pandemic.
Efforts are underway to work with airlines to restore flight routes discontinued during the pandemic, particularly focusing on routes to and from India for the upcoming high tourism season, set to begin next month.
Sorawong also mentioned that TPB and the Department of Tourism are working together to dismantle “zero-dollar” tour companies. These companies create a tourism ecosystem that caters exclusively to foreign tourists with separate souvenir shops and restaurants, disconnecting from the local industry.
Officials have already shut down more than 40 zero-dollar tour firms, reported Bangkok Post.
In related news, Thailand’s booming tourism sector is thriving under a new visa-free policy, attracting millions of foreign tourists. Yet, while Chinese visitors top the list, concerns are mounting over the resurgence of Chinese zero-dollar tours, which could be draining potential revenue from the Thai economy.
