PATTAYA, Thailand – The policy of visa exemption for travelers from 93 countries or territories, allowing a stay in Thailand for up to 60 days for tourism or business purposes starting from July 15, 2024, may not be solely beneficial for Thailand’s tourism and business sectors.
On the contrary, it has created loopholes that allow certain foreign groups to exploit the law for illegal business operations, impacting national security and the economy.
Now, the tourism sector is urging the government to reconsider and reduce the maximum stay for visa-exempt travelers from 60 days to 30 days due to concerns that the exemption may be used as a means to engage in unlawful business activities.
Overstaying Tourists & Illegal Businesses
Sittiwat Cheewarattanaporn, President of the Thai Travel Agents Association (ATTA), stated that legal loopholes are being exploited for illegal business activities in Thailand, leading to disorder and economic instability.
Certain tourists overstay their permitted duration and operate businesses illegally, particularly in sectors that compete with local Thai businesses, such as hotels and accommodations.
“In the case of Chinese tourists, although the Thai government has collaborated with Chinese authorities to crack down on call center scams in Myanmar, the number of Chinese travelers to Thailand has not improved. The figure has dropped from 20,000-30,000 arrivals per day in 2019 to fewer than 10,000 per day at present,” Sittiwat said.
He projected that Chinese tourist arrivals in 2025 might fall short of the government’s target of 8.5-9 million. If this situation persists, Thailand may struggle to attract Chinese visitors as expected, impacting the tourism-dependent economy.
Similarly, Thianprasith Chaipattaranan, President of the Thai Hotels Association (THA), supported the proposal to reduce the maximum stay from 60 to 30 days. He emphasized the need for stricter control over foreign tourists’ stays to mitigate security risks and illegal business operations.
“The private tourism sector agrees with visa exemptions for travelers from 93 countries but is concerned that these exemptions may be exploited for illegal business activities, especially when certain groups overstay or engage in non-tourism-related businesses in Thailand,” he said.
Concerns Over National Security
Thianprasith also expressed concerns about foreign investments in Thailand’s tourism-related businesses, particularly illegal investments, which could pose a national security risk.
Currently, there are cases where foreign investors use nominees to hold shares in Thai businesses beyond the legal limit. Thai law requires foreign investors to hold no more than 49% of a business, but some cases involve nominees who serve as Thai shareholders without actual involvement in operations.
He suggested that foreign investments should contribute to Thailand’s economy by creating new businesses rather than simply acquiring or taking over existing enterprises.
Calls for Regulations on Foreign Property Purchases
The THA president further urged the government to enact clearer regulations on foreign property ownership, particularly by limiting the number of units foreigners can buy. This is to prevent market distortions in Thailand’s real estate sector, especially in popular tourist and investment areas like Phuket and Pattaya (Chonburi).
In these areas, there have been cases where foreigners purchased entire housing or condominium projects to rent them out, significantly impacting the local real estate market.
“The tourism sector has faced increasing issues related to illegal short-term condominium rentals. In some cases, tourists have rented and occupied properties in numbers exceeding legal limits, causing inconvenience and disturbances to local residents,” he noted.
He added that in 2024, illegal short-term rentals became a serious issue in Phuket, particularly in Patong and Bang Tao, as well as in Bangkok. Such practices violate Thai laws and negatively affect legitimate hotel and accommodation businesses.
