Phuket Hotel News: Phuket is witnessing one of the most extensive regulatory crackdowns in its history as authorities intensify operations against illegal hotels, foreign nominee businesses, land encroachments and unlicensed commercial activities. The sweeping enforcement campaign, involving multiple government agencies, comes after the expiry of the government’s hotel registration grace period and signals a determined effort to restore confidence in the island’s tourism industry while ensuring that businesses operate within the law.
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This Phuket Hotel News report reveals that the latest enforcement measures have already resulted in legal action against more than 50 hotels, while authorities estimate that approximately 4,200 accommodation businesses across Phuket continue to operate without valid hotel licenses. At the same time, officials are moving ahead with demolition plans affecting 34 illegal hotel and resort structures, with additional demolition orders expected as investigations continue across the island.
Enforcement Campaign Intensifies
Deputy Interior Minister Polapee Suwunchwee has instructed all relevant agencies to immediately strengthen inspections and law enforcement throughout Phuket. The latest directives focus on illegal land ownership, unlicensed hotel operations, foreign nominee business structures and unlawful developments within protected areas.
The campaign forms part of a broader national strategy aimed at protecting legitimate tourism businesses while eliminating operators who have ignored licensing regulations or attempted to bypass Thai laws governing foreign business ownership.
Authorities have made it clear that businesses complying with all legal requirements will receive government support, while those operating outside the law will face prosecution without exception.
Thousands of Hotels Operating Without Licenses
Officials estimate that Phuket currently has around 5,000 accommodation businesses in operation. However, only about 800 properties possess valid hotel licenses, leaving roughly 4,200 establishments operating under informal or completely illegal legal structures.
The province has been working to reduce a substantial licensing backlog, with more than 600 applications awaiting review. Through the government’s accelerated “Hotel Clinic” programme, nearly 100 compliant small hotels have already received licenses within only three weeks, allowing them to operate legally and contribute tax revenue.
Authorities stressed that hotels meeting engineering, fire safety, environmental and construction regulations should be approved promptly. However, businesses found operating without licenses, illegally expanding room numbers or disguising hotel operations as condominiums or apartment rentals will face immediate closure, arrest and prosecution.
More Than 50 Hotels Already Prosecuted
During a high-level meeting held at Phuket Provincial Hall, Deputy Interior Minister Polapee Suwunchwee confirmed that legal proceedings have already been initiated against more than 50 hotels.
He praised Phuket Governor Chotinrin Kerdsom and provincial officials for rapidly implementing government policy, particularly in enforcing Supreme Court rulings involving illegal structures at Sirinat National Park and Freedom Beach.
The Deputy Minister also instructed the Department of Land to accelerate investigations into suspicious land title deeds issued on mountain areas, forest reserves and agricultural reform land after aerial surveys identified extensive areas of deforestation. Any illegally issued land documents discovered during investigations will result in immediate legal action.
Nominee Company Investigations Expand
The crackdown also targets foreign-owned businesses suspected of using Thai nationals as nominee shareholders to circumvent the Foreign Business Act.
Authorities have expanded investigations from just over 300 companies to 391 businesses now under detailed review. Of the first 353 companies examined, only eight were found eligible for investment privileges through the Board of Investment, while 307 companies were determined to have no legal exemption permitting their ownership structures.
Beginning August 1, businesses in high-risk provinces including Phuket with foreign ownership between 40 and 49.99 percent will be required to submit comprehensive financial documentation, including bank statements for Thai shareholders and company directors. Officials hope the new measures will expose financial arrangements involving proxy shareholders and illegal foreign investment.
The investigations are being coordinated with the Royal Thai Police and the Department of Special Investigation to trace financial transactions, identify hidden investors and examine the origins of assets held by suspected nominee shareholders.
Illegal Structures Face Demolition
Authorities are also pressing ahead with significant land reclamation efforts involving protected public land and national parks.
At Sirinat National Park, officials are moving to recover approximately 25 rai of protected land across two major legal cases. One case involves a 13-rai plot in Sakhu where the Supreme Court has authorized the demolition of 34 illegal hotel and luxury villa structures. Another case concerns a 12-rai site in Choeng Thale where title deeds were allegedly forged.
Meanwhile, demolition teams are preparing to remove commercial buildings illegally encroaching on Nui Beach and Freedom Beach. Government officials have confirmed that demolition costs will be recovered directly from offending property owners.
Wider Enforcement Across Phuket
The province is simultaneously strengthening action against illegal foreign labour, criminal organizations, unlicensed cannabis businesses, influential figures and drug trafficking.
Following a recent case involving the attempted smuggling of more than 30 kilograms of marijuana through Phuket International Airport, district officials have been instructed to inspect cannabis shops operating in tourist districts and walking streets. Businesses found operating without licenses will face immediate prosecution.
Phuket Governor Chotinrin Kerdsom said the province is pursuing a comprehensive strategy covering strict hotel licensing enforcement, demolition of illegal coastal structures, action against foreign nominee businesses, regulation of foreign labor and continued suppression of organized crime. Authorities believe these combined efforts will help protect Thailand’s national interests while strengthening investor confidence and safeguarding Phuket’s reputation as one of Asia’s premier tourism destinations.
The extensive campaign demonstrates that the government intends to enforce existing laws consistently while encouraging legitimate businesses to become fully compliant. Officials believe the measures will create a fairer competitive environment for licensed operators, improve public confidence in Phuket’s tourism industry and preserve the island’s valuable natural resources. With inspections continuing across multiple sectors and further legal proceedings expected in the coming months, businesses operating outside the law are likely to face increasing scrutiny.
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