Thai tourism ministry cracks down on foreign-led tour businesses
The Ministry of Tourism affirmed its commitment to investigating foreign businesses and nominee operations in key tourist areas. In 2024, 40 licences were revoked. The ministry insists that tour companies and guides must be Thai.
Natreeya Thaweewong, the permanent secretary of the Ministry of Tourism and Sports, yesterday, March 16, addressed concerns raised by a former Phuket MP regarding foreign and nominee businesses. She confirmed ongoing investigations by the ministry, specifically instructing the Department of Tourism to verify facts surrounding these operations.
Natreeya explained that the Department of Tourism is tasked with promoting and regulating tour businesses and guides under the Tour Business and Guide Act, 2008. This act prioritises Thai nationals, stipulating that tour operations must either be run by Thai people or have a Thai majority in corporate structures.
Foreign shareholders are limited to 49% of shares, and only Thai nationals can hold signing authority in tour-related businesses. Furthermore, guides must also be Thai nationals.
Addressing businesses that may be using Thai nationals as nominees, the Department of Tourism has established a joint operations centre, referred to as SOPA, to tackle the nominee issue. This centre includes representatives from six agencies: the Office of the Permanent Secretary of the Ministry of Tourism and Sports, the Department of Special Investigation, the Department of Business Development, the Immigration Bureau, the Tourist Police Bureau, and the Department of Tourism.
SOPA records and monitors high-risk license applicants, such as those with foreign-dominated corporate structures. Collaboration with the tourist police and related agencies ensures thorough inspections of these companies.
Foreign businesses
Natreeya added that in Phuket, the tourism department and Tourist Police have been inspecting popular tourist sites like Wat Chalong, the Old Town, and Promthep Cape. They are observing foreign-led tours and collaborating with associations such as the Guide Association and the Tour Business Association to identify potential legal breaches.
Recent nationwide efforts have focused on six key areas: Chiang Mai, Phuket, Pattaya, Chon Buri, Hua Hin, Prachuap Khiri Khan, Koh Samui, Surat Thani, and Bangkok. Investigations revealed companies that altered their board or shareholder composition, losing their eligibility to operate as tour businesses.
Consequently, 40 licences were revoked in 2024. Additionally, two companies were found to have changed their shareholder structure, leading to loss of Thai nationality status, and these cases have been forwarded to the Department of Business Development for further investigation.
In Phuket, 15 business licences were revoked after it was discovered that a tour company had equal numbers of foreign and Thai board members, with one Thai board member appearing on several other company boards. Five other Thai people were also found to interchangeably hold board positions with foreigners, prompting the revocations, reported KhaoSod.
Natreeya concluded by stating that SOPA is currently expanding its investigations into one nominee case. The Department of Tourism is working closely with both public and private sectors to ensure that the tourism industry in Thailand operates legally and meets international safety standards.
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