PHUKET, THAILAND – Nightlife operators in Patong accused local officials of demanding bribes around the New Year holiday period, triggering official denials and renewed calls for reform.
Formal complaint over alleged New Year bribe demands
Earlier in the week, several operators from Patong and other parts of Phuket filed a formal complaint with the provincial Damrongdham Centre. They asked the governor to investigate alleged bribe demands by officials during the recent New Year period. At a subsequent press conference led by the deputy governor, provincial representatives said there was currently not enough evidence to confirm wrongdoing by officials.
Tourism council warns of entrenched enforcement issues
Rangsiman Kingkaew, president of the Tourism Council of Phuket, said on Thursday that the country had a recurring problem with law enforcement, particularly in major tourist hubs such as Phuket. Corruption often arose where operators themselves violated regulations.
“Bribe payments are often the result of operators engaging in illegal practices and thereby creating the conditions for officials to demand money in exchange for protection or looking the other way,”
said Rangsiman, president of the Tourism Council of Phuket.
Profit motives and calls for simpler licensing
According to Rangsiman, conflicts repeatedly surfaced when conditions changed or mutual benefits no longer aligned. Some entertainment venue operators consciously chose to break the law, such as extending opening hours or operating without a licence, because the extra income was higher than if rules were strictly followed. He urged the government to target illegal businesses, particularly unlicensed entertainment venues and unauthorised accommodation, while simplifying licensing procedures for firms willing but currently unable to register due to bureaucratic obstacles.
Structural reforms tied to image and tax revenue
Rangsiman argued that resolving these structural problems could improve the image of Thailand’s tourism sector and increase state tax revenues. Many businesses were in principle ready to obtain proper licences, he said, but were hindered by complex and lengthy procedures. Addressing these issues, he added, would reduce the space for informal arrangements that fuel corruption.
Insider describes long-standing bribery practices
An industry insider from Phuket, who requested anonymity, said bribe payments had long been common in the entertainment sector.
“Operators do not fully comply with the law, for example regarding operating hours. They are willing to pay under the table so they can stay open a few hours longer and generate additional income,”
said the source, an industry insider from Phuket. In Patong, only licensed entertainment venues were currently allowed to remain open until 4 a.m., and according to the insider, the sums demanded were often calibrated to the size of each business.
High season pressures and unaffordable demands
In the current case, the insider said heavy visitor numbers during the New Year holidays and changes within the provincial administration had made the amounts allegedly requested by officials unaffordable for many operators. One main cause of the problem, the source added, was the complicated and drawn-out licensing process, which left many businesses waiting a long time for approvals and seeking informal solutions. At the same time, the ongoing high season had proved disappointing for many entertainment venues, with foreign visitor spending declining.
Shift in visitor mix and weaker Chinese demand
According to the industry representative, many current visitors came from India, Europe and Russia, while demand from the Chinese market remained weak. The combination of softer spending, unresolved licensing backlogs and alleged bribe demands had increased financial pressure on operators. Industry figures argued that tackling illegal operations and streamlining licences would be key to easing tensions between businesses and officials in Phuket’s nightlife sector.