Thailand cracks down on tourism nominees as 33 firms flagged in five provinces

The Department of Business Development is stepping up its crackdown on nominee structures in the tourism business, joining forces with the Department of Tourism to use AI and information technology to detect high-risk operators.

Authorities have identified 33 businesses in five key tourism provinces, revoked the licences of four operators, and are expanding investigations against both Thai nationals and foreigners found to have violated the law.

Poonpong Naiyanapakorn, director-general of the Department of Business Development (DBD) under the Commerce Ministry, said the DBD and the Department of Tourism had discussed measures to prevent and tackle cases in which foreigners operate tour businesses and tourism-related businesses through Thai nominees.

The main issues discussed were measures to prevent and deter nominee businesses operated by foreigners in line with government policy, and the use of information technology systems to inspect and monitor tour companies, guides and tourist services.

Poonpong said the two agencies had jointly reviewed their operating procedures to ensure they reflect the current situation, especially where foreigners illegally conduct business using Thai nominees.

The review focuses on three main areas.

1. Reviewing company registration practices

Authorities will review practices for registering juristic persons, especially cases in which Thai nationals appear as directors of an unusually large number of companies — beyond what any one person could realistically manage.

This is considered a legal loophole that allows foreigners to operate businesses through Thai nominee structures.

The Department of Tourism has already used this type of information when considering applications for tour business licences, treating it as part of the qualifications of juristic persons applying for licences.

Relevant agencies have proposed that applicants’ education background, occupations and economic status be considered, including income information and personal income tax payment records over the past three years.

They may also introduce a screening mechanism through interviews conducted by the Department of Tourism before tour business licences are granted.

These checks would also apply when a company changes its directors or shareholders.

2. Linking tour business licence databases in real time

The agencies will develop a tour business licence database linked to the Department of Business Development’s database through a real-time online system.

The system will include alerts so authorities can promptly monitor and inspect changes in company structures.

3. Creating a database of linked shops and businesses

Authorities will create a database of shops and establishments with business links to tour companies.

This will be used as a tool to monitor, inspect and analyse the wider tourism business network, as well as to watch for foreign capital groups using Thai nominees to monopolise benefits, evade tax or launder money.

The system will involve cooperation among the Department of Business Development, the Revenue Department and the Anti-Money Laundering Office, allowing them to exchange information and conduct joint inspections on an ongoing basis.

Poonpong said the DBD, the Department of Tourism, the Office of the Permanent Secretary of the Ministry of Tourism and Sports, the Department of Special Investigation, the Tourist Police Bureau and the Immigration Bureau had previously signed a memorandum of understanding to tackle nominee structures in the tourism sector.

They have also set up a joint operations centre to handle complaints and tip-offs involving tourism businesses suspected of using Thai nominees.

The agencies have integrated their work through information sharing, field inspections of tour businesses suspected of nominee activity, and joint mechanisms to monitor, prevent and suppress wrongdoing, as well as to prosecute offenders.

From January to June 2026, the DBD, the Department of Tourism and agencies under the MOU conducted inspections of tour operators in five provinces: Chiang Mai, Phuket, Chon Buri, Krabi and Bangkok.

They found 33 businesses considered at risk of nominee activity.

Of these, four tour operators were found to have changed directors or shareholders in ways that caused them to lose the required qualifications under the Tourism Business and Guide Act. The registrar of tour businesses and guides therefore ordered the revocation of their tour business licences.

Information on the remaining 29 operators has been forwarded to relevant agencies for in-depth investigation.

If illegal business operations are found, each agency will strictly enforce the law and take decisive action against all those involved.

“Solving the problem of nominee tour businesses requires cooperation from every sector,” Poonpong said.

“Modern nominees have developed more sophisticated methods to conceal their activities from state officials during field inspections. Suppressing nominee businesses therefore requires cooperation from all sides, along with the use of technology to screen, monitor and closely watch high-risk businesses.

“This will make efforts to prevent and suppress nominee businesses more effective,” he added.