PATTAYA, Thailand – The Ministry of Tourism and Sports has announced that it is urgently investigating foreign-owned businesses or nominee operations in key tourist areas, following concerns raised by a former Member of Parliament in Phuket.
Ms. Natthriya Thaweewong, Permanent Secretary of the Ministry of Tourism and Sports, revealed that the ministry has been continuously investigating the issue of foreign or nominee businesses. In response to this issue, she has instructed the Tourism Department to conduct a thorough investigation.
The Tourism Department, responsible for promoting and regulating tour businesses, including tour guides and operators, has enforced the Tourism Business and Guide Act of 2008. The law stipulates that only Thai nationals are eligible to run individual tour businesses, while corporate entities must have Thai nationals comprising the majority of the board of directors, with foreign shareholders restricted to no more than 49% of the total shares. Additionally, only Thai nationals are allowed to sign on behalf of the tour business.
To combat nominee operations, the department has set up a joint task force called the “Tourism Business Nominee Taskforce”, comprising six agencies, including the Ministry of Tourism and Sports, the Department of Special Investigation, the Department of Business Development, the Immigration Bureau, the Tourism Police, and the Tourism Department. The task force monitors the activities of risky applicants for tourism business licenses, especially those where foreigners have a controlling interest.
In Phuket, the Ministry has collaborated with the Tourism Police to inspect popular tourist spots such as Wat Chalong, Old Town, and Promthep Cape, to investigate foreign-led tours. They also work closely with associations like the Thai Tour Guide Association and the Thai Travel Agents Association to monitor and inspect businesses suspected of violating regulations.
Nationwide, the ministry has conducted inspections in six key areas: Chiang Mai, Phuket, Pattaya, Chonburi, Hua Hin, and Surat Thani. As a result, 40 tourism business licenses have been revoked in 2024 due to illegal changes in board members and shareholding structures. In one instance, a foreign-controlled business in Phuket had to have its license revoked, and legal action is being taken against two companies suspected of nominee operations.
The Ministry continues to collaborate with both public and private sectors to ensure the tourism business in Thailand operates legally and adheres to internationally recognized safety standards.
