PHUKET, THAILAND – The Thai Ministry of Interior has initiated an unprecedented reversal in its approach to thousands of illegal hotels on the popular tourist island.
Beratungszentrum mitten im Bezirksamt
On Thursday, Ministers Polapee Suwunchwee, Polpeerap Suwannachawi, and Worasit Liengprasit personally inaugurated a consultation and complaint center at the Mueang Phuket District Office. Until July 2, hotel operators can seek legal advice, submit license applications, and voice their frustrations directly to officials daily from 8:30 AM to 4:30 PM, including public holidays.
The government aims to offer a way out of the multi-year licensing fiasco.
“We are ready to listen to suggestions from all sectors and amend laws, ministerial regulations, and rules to reflect the current situation.”
said Polapee.
Nur 800 von 5.000 Hotels legal
The stark numbers reveal the extent of the issue: out of an estimated 5,000 hotel establishments in Phuket, only about 800 hold a valid license. An additional 700 applications are pending with authorities. The remainder operate in a legal gray area, or outright illegally.
Industry representatives have long complained about restrictive building codes, questionable planning laws, and licensing hurdles that systematically disadvantage small, family-run hotels. Many operators have failed to navigate the complex procedures, duplicative requirements, and lengthy approval times despite repeated attempts.
Razzien treffen Wiederholungstäter
Alongside the consultation drive, enforcement measures continue. Just on Tuesday, DOPA officials searched the Chateau du Village Patong Hotel – a repeat offender whose operators had already been convicted earlier this year for lacking a license. The establishment allegedly continued its operations.
The raids are part of a nationwide campaign by DOPA against allegedly unlicensed accommodations. Officials also claim some businesses have used bribes to avoid inspections, though they have not yet presented evidence. The distinction between bribery and extortion is not clearly made in local reports.
„Helping the Blue“-Skandal kocht hoch
As the licensing campaign progresses, DOPA Director-General Narucha Khosasilvilai is facing immense pressure. Complaints have been filed with the National Anti-Corruption Commission and the Election Commission alleging that he instructed officials to support candidates from the Bhumjaithai Party during the Senate elections in February, a national election year.
Narucha denies the accusations in the so-called “Helping the Blue” scandal. This political dispute is overshadowing efforts to move thousands of hotel operators out of illegality and fundamentally reform the licensing system.
290 Millionen Baht Wartungsgebühren
Meanwhile, at a tourism seminar attended by over 400 hotel operators, the PPAO reported financial data: from October 2025 to May 2026, over 290 million Baht in maintenance fees were collected from hotel guests, a 4.17 percent increase compared to the same period last year.
However, May saw a downturn: revenues dropped by 8.36 percent to just over 25 million Baht. Industry insiders attribute this to the ongoing volatility of the tourism market, despite surface-level growth.
Zwei Wochen Schonfrist für Anträge
The government is urging operators to bring their building plans, property documents, and old application papers to utilize the two-week grace period. Minister Worasit promised that the ministry would examine the issues “in every dimension” and seek a balance between business interests, public order, and the common good.
Authorities have been instructed to expedite complete applications. Those found operating without a license after the campaign concludes will face prosecution and new raids. It is estimated that unlicensed hotels accommodate over 20,000 guests daily.
Jahrelanges Fiasko vor der „letzten Chance“
As early as October 2024, authorities, including the SME Bank, launched a “last chance” campaign. While some previous temporary exemptions allowed approximately 1,000 hotels to become legal, thousands of small businesses were unable to meet the deadlines.
The current initiative marks a strategic shift: from pure prosecution to actively engaging operators who claim to have been excluded by the system for years. Whether this will be enough to bring the multi-billion-baht market out of the shadows remains to be seen by July 2.