In Phuket Island in Thailand, the local authorities recently raided three properties – two of which were originally developed for residential purposes – that illegally operated as hotels catering to foreign tourists, according to a news report by VnExpress. This is only a part of the ongoing crackdown against illegal hotels and already something wrong have been uncovered.
To put things in perspective, posted below is an excerpt from the news report of VnExpress. Some parts in boldface…
Thailand has intensified its crackdown on illegal hotels on its largest island Phuket after inspections found three properties operating without licenses.
Deputy Interior Minister Polapee Suwunchwee recently led a joint inspection in Phuket targeting three hotels with about 200, 240, and 45 rooms. Authorities found that none had valid construction permits or hotel operating licenses, according to Bangkok Post.
Investigators said two of the properties had originally been approved as residential buildings or condominiums but were later converted into hotels without authorization.
Officials also carried out online booking tests, confirming the hotels were primarily marketing rooms to European and other foreign tourists, with virtually no Thai customers.
The investigation also uncovered suspected nominee ownership arrangements involving companies with 49% foreign and 51% Thai shareholding. Some properties were legally owned by Thai nationals but leased to Chinese investors, who allegedly operated hotels without the required licenses.
The inspections were part of a broader operation covering more than 10 locations across Phuket. Phuket Governor Sophon Suwannarat has been instructed to order businesses to shut down immediately if operators fail to provide the required documentation.
Narucha Kosasivilize, director-general of the Department of Provincial Administration, said operating a hotel without a license violated the law and caused widespread harm, according to The Nation.
He said the problem had three major consequences: it hurt the economy by placing legally compliant, tax-paying operators at a disadvantage; it posed safety risks because illegal accommodations often failed to meet government safety standards, putting tourists’ lives and property at risk; and it tarnished Thailand’s image while undermining long-term confidence in the country’s tourism sector.
The Department of Provincial Administration is working with the Royal Thai Police, the Ministry of Commerce, the Department of Special Investigation, and other agencies to expand investigations into foreign business networks across the country.
Let me end this piece by asking you readers: What is your reaction to this development? Do you think the authorities in Thailand will be able to find and raid all existing illegal hotels?
You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.
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