Thai Tourism Ministry Intensifies Crackdown on Foreign-Led Tour Businesses, With Impacts Felt in Hua Hin

The Thai Ministry of Tourism and Sports has ramped up its efforts to clamp down on foreign-led tour companies operating through nominee arrangements. This aggressive crackdown is aimed at ensuring that the nation’s tourism sector remains predominantly Thai-run, safeguarding the interests of local businesses and preserving the authenticity of Thai tourism experiences.

The move comes as authorities uncover increasing evidence of foreign nationals using Thai proxies—so-called “nominees”—to circumvent the Tour Business and Guide Act of 2008. This law stipulates that tour companies must be majority Thai-owned, limiting foreign shareholders to no more than 49% and granting signing authority exclusively to Thai nationals. However, investigations have revealed that many foreign-led enterprises manipulate these regulations by appointing Thai nationals as figurehead shareholders or board members while retaining real control over business operations.

Government Action & SOPA’s Role

Recognizing the severity of the problem, the Department of Tourism has launched the Special Operation Centre for Preventing Nominees (SOPA), a dedicated task force working in conjunction with six key government agencies:

• The Department of Special Investigation (DSI)

• The Department of Business Development

• The Immigration Bureau

• The Tourist Police Bureau

• The Office of the Permanent Secretary of the Ministry of Tourism and Sports

• The Department of Tourism

SOPA’s primary mission is to scrutinize tour businesses across Thailand, with a particular focus on those applying for new licenses. The agency keeps detailed records of high-risk applications, flagging companies where foreign interests appear to exert disproportionate influence. SOPA’s teams conduct thorough inspections in collaboration with tourist police and other regulatory bodies, ensuring that nominee businesses are exposed and dealt with accordingly.

In 2024 alone, these efforts resulted in the revocation of 40 tour company licenses across Thailand. This includes a particularly high-profile case in Phuket, where 15 business licenses were stripped following an investigation into a company that had an equal number of foreign and Thai board members—an arrangement designed to give foreigners covert control over operations. Authorities also found that one Thai board member appeared on multiple corporate registrations, a strong indicator of nominee arrangements.

Impact on Hua Hin & Local Tour Operators

While much of the focus has been on major tourist hubs like Phuket, Pattaya, and Bangkok, the crackdown has also extended to smaller but equally popular destinations such as Hua Hin and Prachuap Khiri Khan. The presence of foreign-led nominee businesses in Hua Hin has been a growing concern among local tour operators, who argue that these illegal setups create unfair competition and undermine local businesses.

For years, small tour operators and licensed guides in Hua Hin have struggled to compete with larger, often foreign-backed companies that operate under nominee arrangements. These companies typically have access to better funding, online marketing expertise, and exclusive partnerships with overseas travel agencies, giving them a significant advantage over independent Thai operators. With authorities now actively investigating these illegal business practices, many local entrepreneurs see an opportunity for a fairer playing field.

A Hua Hin-based tour operator, who requested anonymity, shared their thoughts on the ministry’s actions:

"For a long time, we’ve had to deal with unfair competition from foreign businesses that pretend to be Thai-run. They often undercut our prices, use unlicensed guides, and control large portions of the market. This crackdown is long overdue, and we hope it will give local businesses a better chance to compete fairly."

Tourist Experience & Industry Standards

Beyond the economic implications, the crackdown also addresses quality control concerns. Many foreign-led nominee businesses have been accused of cutting corners on safety, providing subpar services, and hiring unlicensed tour guides who lack proper training. Such practices not only degrade the overall tourist experience but also pose serious risks to visitors.

In contrast, locally-run Thai tour companies adhere to strict national standards, ensuring that licensed guides are properly trained and capable of offering genuine insights into Thai culture, history, and traditions. By enforcing the 2008 Tour Business and Guide Act, the Thai government hopes to elevate service standards across the industry and maintain the country’s reputation as a world-class travel destination.

Hua Hin, known for its pristine beaches, historic sites, and relaxed atmosphere, is particularly well-positioned to benefit from these regulatory changes. Tourists visiting Hua Hin can expect a more authentic experience, led by local guides who understand the area’s cultural significance, hidden gems, and best-kept secrets. As foreign-led nominee businesses are phased out, the focus shifts back to preserving the unique charm of destinations like Hua Hin, rather than mass-market tourism that prioritizes profit over cultural integrity.

Future Outlook: Stricter Regulations & Continued Enforcement

While the recent actions taken by the Tourism Ministry mark significant progress, officials have made it clear that the crackdown is far from over. The Department of Tourism has pledged to continue its investigations, with SOPA conducting regular compliance checks to ensure that nominee businesses do not re-emerge under new disguises.

Authorities have also warned that Thai nationals who knowingly participate in nominee arrangements may face legal consequences, including fines and revocation of their business licenses. The government is actively encouraging whistleblowers to report any suspicious tour business activity, further strengthening the enforcement process.

For Hua Hin and other tourist destinations in Thailand, this sustained effort could usher in a new era of fair competition, improved service standards, and greater opportunities for local businesses. As Thailand remains one of the world’s top tourist destinations, ensuring that its tourism sector remains truly Thai-run is not just a legal obligation but a commitment to preserving the country’s cultural and economic sovereignty.