Sihanoukville, Cambodia – TUI announced it had ended its commercial relationship with the owner of a hotel in Sihanoukville after allegations tied the partner to the business network of entrepreneur Chen Zhi.
TUI said the partnership was terminated
TUI said the decision to end the cooperation was already in motion before the recent public allegations surfaced. The company said the hotel owners had failed to meet contractual obligations for operating the property. A TUI spokesperson said: “We act according to our brand standards — and those were not met.”
Allegations focus on Chen Zhi and Prince Holding Group
Chen Zhi, a businessman described as British-Cambodian in media reports, is accused by US authorities of running an extensive network under the Prince Holding Group implicated in organised cyber fraud and human trafficking. The revelations have reverberated across the travel industry after TUI had taken on a hotel from the group in Sihanoukville last year.
Reports describe forced labour and scam factories
US law enforcement has alleged that businesses linked to Chen operated compounds in Cambodia where people were coerced into carrying out online scams, including cryptocurrency fraud. Similar “scam factories” were reported in neighbouring countries, where victims were said to have been lured with false job offers and then forced under threat to participate in criminal schemes.
Seizures, sanctions and global investigations
Authorities said the scale of the alleged operations was significant: more than 127,000 bitcoins, with an estimated value of about $15 billion, were seized in related actions. The United States and the United Kingdom have already imposed sanctions on companies tied to Chen. Investigations were reported to be under way in more than 30 countries, and prosecutors have said a conviction could carry a sentence of up to 40 years in prison.
Implications for the travel industry
TUI’s move underscored the reputational and contractual risks tour operators face when local ownership structures are later implicated in criminal activity. The company said it would not continue with partners that did not meet its standards, and the case has prompted wider scrutiny of due diligence procedures across the sector.
The unfolding investigations and sanctions have left suppliers and operators assessing exposure and compliance measures, while regulators and governments continue pursuing evidence across borders.