Thailand Clears Backlog of 275 Illegal Phuket Hotel Licences
Thai authorities have processed 275 backlogged Phuket hotel licences while expanding investigations into 391 businesses over foreign nominee structures
- Thai authorities approved 275 hotel licenses in Phuket over the past two months, addressing a major administrative backlog that began in 2018.
- This action cleared over 75% of the 392 total pending applications, a significant increase from the previous average of only 30-40 approvals per year.
- The remaining 117 applications in the backlog are scheduled to be fully reviewed and cleared by September 2026.
- The accelerated processing was initiated by a direct order from the Prime Minister to formalize the island's tourism infrastructure and regulate unlicensed businesses.
Thai authorities have processed 275 backlogged Phuket hotel licences while expanding investigations into 391 businesses over foreign nominee structures.
Thai authorities have resolved a major administrative backlog dating back to 2018 by issuing hotel licences to 275 properties in Phuket as part of a broader government drive to regulate unlicensed hospitality businesses and crack down on illegal foreign nominee operations.
Announcing the milestone on Wednesday, deputy government spokesperson Ploytalay Laksameesaengjan stated that 275 out of 392 pending hotel applications have been approved over the past two months.
The remaining 117 applications are scheduled for complete review and clearance by September 2026.
The swift processing follows direct orders from Prime Minister and Minister of Interior Anutin Charnvirakul to formalise the island’s tourism infrastructure. Prior to the recent government campaign, provincial authorities processed an average of just 30 to 40 hotel licence applications annually.
The two-month intensive push has cleared over 75 per cent of the backlog that had been stalled for six years.
"For operators attempting to secure hotel licences but facing legal and regulatory hurdles, authorities are collecting data to propose fair legislative amendments," Ploytalay said. "The government prioritises safety above all else and aims to bring operators into the formal system while eliminating extortion and bribery."
Simultaneous Probe into Foreign Nominee Networks
The licensing push runs parallel to a major law enforcement campaign targeting foreign-controlled businesses operating through Thai nominee shareholders.
The Interior Ministry initiated widespread inspections following public complaints regarding illegal operations, missing construction permits, and foreign investors using local frontmen to circumvent Thailand's foreign ownership laws.
The scope of the investigation expanded significantly in July after official inspections identified two hotels operating without valid hotel licences or required building permits.
The probe into foreign nominee structures originally targeted 300 entities before expanding to scrutinise 391 companies across the province.
Broadening Enforcement Across High-Risk Sectors
Inspection drives broadened further after a high-profile incident at Chabad House in Patong, where an unidentified individual reportedly questioned the authority of Thai officials during a routine check.
Following the confrontation, the Ministry of Interior expanded its inspection mandate to cover more than 361 businesses deemed high-risk across Phuket. Targeted sectors include:
Luxury accommodation: Unregistered hotels and private luxury villas.
Tourism services: Tour agencies and commercial restaurants.
Corporate structures: Entities suspected of disguising foreign equity through nominee shareholding schemes.
Government spokespersons reaffirmed that several cases have been handed over to the Royal Thai Police for formal prosecution, with investigators gathering additional evidence to expand the crackdown.
Interior Minister Anutin pledged that offenders would face the fullest penalties under the law, maintaining that strict enforcement is essential to safeguard fair commercial opportunities for domestic business owners and preserve Thailand's economic sovereignty.
