Deputy Minister of Interior Estimates That There Are Nearly 1,000 Hotels in Phuket Operated by Foreigners Without Licenses!

Thailand Hotel News: The Thai government’s intensified campaign against illegal business operations in Phuket has once again placed the island’s tourism and hospitality sector under the spotlight, following claims by Thailand’s Deputy Minister of Interior that nearly 1,000 hotels across the island are allegedly being operated by foreign interests without the required hotel licenses.

According to an article published in a leading Thai business publication Krungthep Turakij, it was stated that the Deputy Minister of Interior said that estimates show there are more than 1000 hotels across Phuket controlled by foreigners and that these hotels are without licenses!

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This Thailand Hotel News report comes as officials continue broad investigations into businesses suspected of violating Thai ownership laws, licensing regulations, and nominee shareholding restrictions. The announcement has renewed concerns about the long-standing issue of illegal accommodation businesses that have flourished alongside Phuket’s booming tourism industry.

Growing Risks for Tourists

Industry observers warn that the issue extends beyond regulatory compliance. Guests staying at unlicensed hotels may unknowingly expose themselves to considerable risks if an accident, fire, theft, or other emergency occurs during their stay.

Because these establishments are allegedly operating without valid licenses, travelers could encounter complications when attempting to make insurance claims or seek compensation. Questions may also arise regarding whether such properties comply with mandatory fire safety standards, building regulations, emergency preparedness requirements, and other legal obligations required of licensed hotels in Thailand.

Consumer advocates have repeatedly urged travelers to verify that accommodation providers are legally registered before making reservations, particularly as Phuket continues to attract millions of domestic and international visitors each year.

Wider Investigations Across Multiple Industries

The investigations are not limited to hotels. Authorities have also been examining businesses operating in sectors including restaurants, vehicle rental companies, pharmacies, souvenir shops, AI and IT services, consulting firms, and various tourism-related enterprises.

Officials have expressed concerns that some businesses may be using Thai nominee shareholders to circumvent restrictions on foreign ownership in sectors reserved for Thai nationals. Investigators are also reviewing whether some foreign workers may be performing duties that fall outside the scope of their approved work permits, potentially violating Thailand’s labor and immigration laws.

These enforcement efforts form part of a broader campaign aimed at strengthening regulatory compliance while ensuring that legitimate businesses compete on a level playing field.

Government Enforcement Gains Public Support

Supporters of the current enforcement drive have praised the Ministry of Interior and members of the Bhumjaithai Party for taking a more active role in addressing long-standing concerns surrounding illegal business operations on Phuket. Some said that the current government is finally returning the island back to Thais after years of corrupted political parties and authorities closing an eye to illegal activities on the island.

Many local business operators argue that stronger enforcement benefits law-abiding entrepreneurs who have invested heavily in meeting licensing, taxation, employment, and safety requirements. They believe consistent enforcement helps protect Thailand’s tourism reputation while encouraging sustainable investment in the hospitality sector.

Some observers have also suggested that the enforcement model currently being implemented in Phuket could eventually be expanded to other tourism destinations facing similar challenges such as Pattaya, Hua Hin, Chiang Mai Hadyai, Krabi, Samui, Chiang Rai, Kanchanaburi, Mae Hong Song etc and even Bangkok.

Questions Continue Over Larger Investigations

While recent enforcement actions have resulted in numerous inspections and legal proceedings, some local residents believe that authorities have so far primarily targeted smaller operators.

There has also been considerable discussion on social media and within Phuket’s business community regarding whether investigations will eventually extend to larger property developers and hospitality operators. Various allegations and claims have circulated online concerning certain companies and individuals.

However, many of these claims remain unverified, and no final legal determinations have been made. As such, any allegations should be treated with caution until formally established through the appropriate legal process.

Industry analysts note that transparency, due process, and impartial enforcement will be essential if public confidence in the ongoing investigations is to be maintained.

For example, many locals have pointed to a real estate company led by an Indian who stated that his wealth was generated through cryptocurrency investments. However, according to widespread local speculation, the company is allegedly backed and controlled by Chinese working alongside a construction business that is also owned by Chinese, with claims that a significant portion of its funding originated from “strange”crypto money activities. These remain allegations that have not been publicly established.

The company has reportedly faced scrutiny in the past over alleged nominee shareholding issues. Industry observers also claim that the same individual, who has become a familiar face at hotel and property events and has been promoted as an “ influential figure” within Thailand’s business community in certain media, privately boasted that certain official agencies could be easily influenced. That allegation has also not been independently verified.

With the company continuing to develop villa and condominium projects while it is also into hospitality services as listed on their website, many in Phuket are watching closely to see whether any further official action or investigations will follow.

Phuket’s Tourism Future Depends on Strong Governance

Phuket remains one of Thailand’s most valuable tourism destinations, attracting visitors from every corner of the world and generating billions of baht annually for the national economy. Maintaining confidence in the island’s hospitality industry requires effective regulation, fair competition, and strict enforcement against businesses operating outside the law, regardless of their size or ownership structure.

Many stakeholders believe the current investigations represent an opportunity to strengthen the integrity of Phuket’s tourism sector while ensuring that legitimate hotel operators are not placed at a competitive disadvantage by illegal businesses avoiding licensing costs and regulatory obligations. If authorities continue enforcing the law consistently and transparently, the long-term outcome could be a stronger, safer, and more sustainable hospitality industry that benefits tourists, investors, local communities, and responsible business owners alike.

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