Koh Phangan, Surat Thani —
Authorities have intensified their campaign against nominee-owned businesses on Koh Phangan, launching coordinated raids on unlicensed hotels in the island’s Sri Thanu area. The operation targeted four resorts suspected of operating illegally and using Thai nationals as proxies for foreign investors.
Authorities told the Phuket Express that this weekend investigators staged undercover purchases before moving in on the establishments. The raids revealed what they say are clear violations of the Hotel Act (2004):
- A resort with Swiss and Thai shareholders. Authorities arrested a Thai woman, charged with running a hotel without a license. The property offered 23 rooms.
- A residence resort with Slovenian and Thai shareholders. The resort had closed just before officers arrived.
- A resort with Greek and Thai shareholders. Eight rooms were in service. A Thai operator was arrested, along with two Myanmar nationals accused of working illegally.
- A beach & wellness resort with Uruguayan and Thai shareholders. Twelve rooms were available. A Uruguayan national identified himself as the owner and was charged with operating without a license.
Three individuals now face prosecution for running hotels without authorization. Authorities also seized shareholder records and financial documents to trace money flows and examine land ownership. Officials suspect nominee arrangements, where Thai citizens front for foreign investors and may be used to bypass restrictions under Thailand’s Foreign Business Act.
The Sri Thanu area, home to a Jewish religious site, has become a hub for Israeli residents and visitors. Investigators believe many foreigners in the area may be renting villas or private homes, avoiding the licensing requirements that apply to hotels and resorts. However, the raids revealed ownership structures involving nationals from Switzerland, Slovenia, Greece, and Uruguay, raising broader concerns about foreign control of tourism-linked businesses.
Authorities pledged to continue monitoring Koh Phangan’s tourism sector, stating that unlicensed operations undermine regulatory oversight and fair competition. The crackdown forms part of a wider national effort to address nominee structures and ensure compliance with Thai business laws.
