Concerns raised over foreign nominee-linked investment in Pattaya
Truth Investigation examines foreign-linked businesses and illegal labour in Pattaya as Chonburi pledges firm action against nominees.
- Concerns have been raised that foreign nationals, particularly from India, are using Thai nominees to operate a large number of businesses and own real estate in Pattaya.
- This investment model is reportedly dominating the service and entertainment sectors, harming the competitiveness of local Thai businesses and raising fears of a "zero-dollar tour" scenario where money does not benefit the Thai economy.
- The problem is partly attributed to the country's visa-free policy, prompting calls for the government to screen for "quality tourists" and take urgent action against illegal nominee arrangements.
- In response, provincial officials acknowledged the issue and pledged to take strict action against any investor, regardless of nationality, found to be illegally using nominees to evade the law.
Thailand is facing a problem involving large numbers of so-called “grey” foreign nationals entering the country to operate businesses and hold real estate through Thai nominees, particularly in major tourist destinations.
Some have also established themselves as influential figures or members of foreign mafia networks and encroached on state and forest land.
The problem stems partly from the visa-free policy, prompting the government and prime minister to accelerate action and place greater emphasis on screening for quality tourists than on visitor numbers.
The Truth Investigation programme on Thursday (September 10, 2026) closely examined whether Thailand had become a “paradise” for “transnational criminal gangs” or “foreign mafias”.
The programme described today’s Pattaya as no longer the city it once was.
Its former image as a city filled with visitors of many nationalities, particularly Western tourists regarded as having high spending potential, now survives only in memory.
It portrayed groups of Indian tourists as making up most of those seen on the streets, making the city resemble the Indian subcontinent.
The programme stressed that the presence of Indian tourists was not itself a problem and that their spending power was no lower than that of European or American visitors.
Its concern was that Indian capital had come to dominate businesses across almost the entire commercial district, reflecting a significant issue that should not be overlooked.
Yodchai Puengporn, a Chonburi MP for the People’s Party, noted that the problem was not limited to Pattaya and could spread nationwide.
Pattaya, he explained, was one of the first destinations for foreign nominee investment, with figures he described as alarming.
Much of the capital now entering service and entertainment businesses was Indian, he added, while investors were snapping up properties, buildings and homes to serve tourists from the same country.
He compared this with China’s former “zero-dollar tour” model, in which money did not genuinely enter the Thai economy.
The Truth Investigation news team visited Pattaya Second Road and Walking Street, where it reported finding that most restaurants and entertainment venues were owned by Indian businesspeople.
Staff also walked the streets soliciting customers.
The team reported that this directly affected the competitiveness of Thai businesses and was accompanied by problems involving the unlawful employment of migrant workers.
Source: NationTV
Yodchai urged the government to address the country’s tourism image urgently and seriously before Vietnam took market share and drew away all high-quality tourists.
He said Thailand now had to receive several times as many visitors to generate the same revenue, while natural resources were being destroyed on a large scale.
He called on the government to give the matter urgent attention.
Issara Charoenchasri, deputy governor of Chonburi, acknowledged that Pattaya was driven by foreign investment.
He said the province welcomed investors from around the world if they operated lawfully, had work permits and had passed immigration checks.
He put the share of Indian capital in the area at about 10%.
However, Issara said the province would take strict and decisive action against investors of any nationality found to be intentionally evading the law or using nominees, not only Indian investors.
He added that government agencies were continuously coordinating inspections of migrant labour and business operations to strike a balance between “the economy and security”.
He urged business operators to make Thai law their primary guide to protect the interests of the country and Thai people.
