Phuket tourism firms under scrutiny
Only two entrepreneurs serving Chinese tourists in Phuket are officially claimed as "operating unusually" while 42 companies are under speculation, Tourism Minister Kobkarn Wattanav-rangkul said yesterday.
She chaired a meeting with tourism authorities and the private sector in Phuket to obtain in-depth information regarding business-ownership and nominee problems.
The Business Development Department in Phuket has found only two registered companies that were running their business irregularly. One of them is a retail company and the other a car-rental agency.
The department also said 42 registered companies had foreigners with minority stakes. They are running a variety of businesses such as trading, property development, real-estate brokerages, spas, tour operators, shops, restaurants, retail, and food and beverage |concerns.
"At the initial stage, only two registered companies were found running business unusually and if they are found guilty, they will be sent to the Department of Special Investigation for further processing. We are also eyeing 42 operators," Kobkarn said.
Her visit is expected to help crack down on non-registered businesses and drive nominees – Thais who act as fronts for de facto foreign owners – out of the island.
Local operators in Phuket have been urging the government to do something about illegal businesses and nominees, particularly Chinese who move to the island and dominate the China market with their travel packages as well as other services.
"More Chinese will come to Thailand during Chinese New Year. We should be concerned about this market and its problems," she said.
During the festival, which starts tomorrow and ends on February 14, 1.01 million foreigners are expected to visit the Kingdom.
Chinese from mainland China, Hong Kong, Taiwan, Singapore and Malaysia are estimated to increase 20 per cent to a combined 476,000. They are expected to generate income of Bt15 billion. Mainland Chinese alone will pass 300,000 this year.
About 330 charter flights from mainland China, Hong Kong, Taiwan, Singapore, Malaysia, South Korea, Japan and Vietnam will carry tourists to Thailand. Of the charter flights, 174 will go directly to Bangkok, 75 to Phuket, 37 to Krabi and 44 to Chiang Mai.
For years, many operators in China have been selling cheap tour packages to Thailand. The industry quotes package rates sometimes 50-80 per cent lower than market prices. The cheap packages normally cover only air tickets, accommodation and some meals, not all expenses such as hotel rooms for some nights, dinner, transport and admissions to attractions.
Chinese travelling with these companies will be forced to buy optional tours, dinner and hotel rooms while in the country. If they don’t pay, they will be abandoned, even at midnight or in a forest. Operators might take tourists to shops to buy fake jewellery or on optional tours at inflated prices.
