Two illegal Phuket hotels found, 360 firms face nominee probe

Two hotels in Phuket’s Patong area have been found operating without licences, while officials have ordered further investigations into 360 companies suspected of using foreign nominee shareholders.

Deputy Interior Minister Polapee Suwannachawi led officials from the Interior Ministry, Department of Provincial Administration, Land Department, Phuket Provincial Office and other agencies on an inspection of hotels and businesses in Patong, Kathu district, yesterday, July 11.

The operation focused on complaints involving foreign-owned businesses, suspected nominee shareholding, and compliance with construction and operating permit requirements. Officials inspected two hotels following complaints that they were operating without licences.

Officials found two illegal Phuket hotels and launched a nominee probe into 360 firms suspected of using unlawful shareholding arrangements.
Photo via PR Sarakham

“The two hotels inspected were found to be operating without hotel licences and without legally required construction permits. Officials from the Department of Provincial Administration will now take action in accordance with legal procedures,” Polapee said.

He added that the task force had received information from the Ministry of Commerce indicating that 360 businesses may be using nominee shareholders, with foreign investors holding shares beyond the legal limit. Officials will conduct detailed checks on the businesses and their permits.

The deputy minister also referred to another premises that had applied for permission to operate as a hotel and restaurant. However, an initial inspection found no accommodation on site. Instead, the property contained a restaurant and a Jewish place of worship.

Officials found two illegal Phuket hotels and launched a nominee probe into 360 firms suspected of using unlawful shareholding arrangements.
Photo via PR Sarakham

Amarin TV reported that he said Phuket provincial officials and relevant agencies had been instructed to continue inspecting businesses across the province to ensure they comply with Thai law.

Polapee stressed that the operation was not targeting any specific business or location but was part of a broader effort to enforce the law and maintain order in Phuket. He said particular attention would be be given to businesses seeking operating licences that may be at risk of nominee ownership arrangements.

In similar news, a police policy adviser has urged the Thai government to “reset Phuket” to tackle nominee networks, warning that the island’s challenges now extend beyond crime and could damage Thailand’s global reputation.

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Chattarin Siradakul

With a degree in language and culture, focusing on media studies, from Chulalongkorn University, Chattarin has both an international and a digital mindset. During his studies, he spent 1 year studying Liberal Arts in Japan and 2 months doing internship at the Royal Thai Embassy in Ankara, both of which helped him develop a deep understanding of the relationship between society and media. Outside of work, he enjoys watching films and playing games, as well as creating YouTube videos.