Surat Thani, Thailand – The provincial government announced a crackdown on suspected illegal business operations and dubious land purchases by foreign investors on the resort islands of Koh Samui and Koh Phangan.
Provincial response
Governor Theerut Supawiboonphol said two special commissions had been set up to investigate and halt what officials described as a growing pattern of foreigners using Thai nominees to run businesses and acquire property. The move came after complaints from residents and local entrepreneurs, who had accused a number of visiting tourists and businesspeople—particularly Israeli nationals—of inappropriate conduct and running unauthorised enterprises.
“We will not tolerate activities that damage our image as a tourism destination,” Theerut said, announcing the intensified enforcement.
How the schemes operated
Authorities said many foreigners entered Thailand on tourist visas, then opened businesses or assumed control of land through Thai straw owners, a practice that is illegal in Thailand but has been used for years to circumvent strict foreign ownership rules. “They operate bars, restaurants or resorts under Thai names while profits flow overseas,” the governor said, arguing that such arrangements harm legitimate local operators.
This use of nominees allows investors to conceal actual control of properties and enterprises, critics say, undermining the legal framework that governs land and company ownership in the country.
Enforcement measures
One of the two commissions will focus on entry and immigration checks, aiming to immediately prosecute and deport foreigners found to be breaching visa conditions. The second unit will scrutinise land transactions, building permits and company registrations on the islands to determine whether registered Thai owners were acting as front persons for foreign investors.
Officials said the inspections would extend to businesses and construction projects on Koh Samui and Koh Phangan, with targeted audits of paperwork and ownership structures.
Economic impact
Provincial authorities warned that millions of baht were being sent abroad each year through these illegal arrangements, while local entrepreneurs lost customers and jobs. “These practices destroy trust in our markets,” Theerut said. He added that enforcement was necessary to ensure businesses in Surat Thani were run by people who lived, worked and paid taxes locally.
Investigations under way
Several suspected cases had already been referred to the immigration bureau and the Interior Ministry for further action, the governor said. The provincial government also said it planned legal changes to close loopholes in company and land law to prevent the recurrence of such structures.
Behind the white beaches and luxury villas, provincial officials said they intended to send a clear signal that unlawful business practices would no longer be tolerated on the islands.