While there has long been talk that foreign capital and foreign investors helped develop Phuket, newer discoveries have raised serious questions about whether much of that development has primarily benefited foreign interests rather than Thais and the Thai economy.
Image Credit: Phuket Hotel News
Concerns are now being raised that some Israeli, Chinese, Russian, Spanish, German, British, Australian and even Singaporean groups have been siphoning money generated from their investments and business activities in Phuket back to their home countries while evading taxes. Even worse, they are some Chinese and Europeans with the help of certain Thai Indians using sale of condos and villas and hospitality income via rentals as a means of money laundering for big criminal groups in China, Europe, Russia and South America.
At the same time, allegations are emerging that some white foreign groups have become increasingly arrogant in their operations, even excluding Thais and other Asians from legitimately participating in parts of Phuket’s hospitality industry.
Thailand Has Changed — and Thais Now Have the Capital and Expertise
Thailand has changed significantly. The country now has large numbers of highly educated and professionally qualified Thais, as well as Thai investors with substantial amounts of capital.
A growing number are consequently asking whether it is time for Thais to seize back greater control of Phuket from foreign interests and allegedly corrupt local officials, while calling upon the central government in Bangkok to exert greater control and oversight over the island. The Anutin led government has been doing a great job so far in uncovering all the criminal activities being conducted by foreign groups on Thailand including Phuket but more needs to be done. Larger legitimate and ethical foreign groups will not invest in Thailand till a lot of garbage is cleared up.
At least three new Thai activist groups are understood to have emerged around these concerns along with the backing of certain Thai politicians and big Thai corporations, backing them, reflecting growing frustration about the direction in which Phuket’s hospitality and tourism industries have developed.
Phuket Hotel News understands that the concerns being raised extend beyond hotel ownership and foreign investment to employment, work permits, procurement, hospitality suppliers, consultants, media, marketing and the wider network of businesses benefiting from Phuket’s tourism economy.
Questions Over the Growing Number of Foreign Work Permits
One of the most worrying issues being raised concerns the approval of the large number of work permits for foreigners on the island.
This comes in addition to longstanding concerns surrounding nominee arrangements and questions about whether existing laws governing foreign businesses and employment are being properly enforced.
There are also calls for investigations into why there are so many white foreign executives occupying senior positions in Phuket hotels when there are qualified and experienced Thais who are unable to secure comparable positions.
For those demanding greater Thai participation, the question is increasingly whether foreign work permits are being issued in circumstances where suitably qualified Thai professionals could fill senior positions within the island’s hotel and hospitality industry.
Calls to Investigate Phuket’s Hotel Management Networks
Another issue requiring urgent investigation, according to those raising these concerns, is the network of white foreign hotel general managers and hospitality consultants who are alleged to be restricting non-white and Thai hotel suppliers from entering their established business and procurement networks.
Questions are being raised about whether certain professional and commercial networks have effectively become closed circles, limiting opportunities for Thai businesses and other Asian-owned companies to participate in Phuket’s lucrative hospitality economy.
Such concerns are particularly significant because hotel general managers, consultants and senior executives can exercise considerable influence over purchasing decisions, supplier relationships, marketing contracts and other commercial opportunities.
Foreign-Owned Suppliers, Media, PR and Hospitality Businesses Face Scrutiny
There are consequently calls for closer scrutiny of foreign-owned businesses operating throughout Phuket’s hospitality ecosystem. A list has recently been compiled with the Thai activist groups investigating their ownerships and operations.
These include hotel suppliers and consultants, travel and hospitality media owned by white foreigners, foreign-owned public relations and marketing companies, wine and liquor businesses, food suppliers, hotel supply companies and other businesses servicing Phuket’s tourism and hospitality industries.
The fundamental question being raised is why Thai companies are allegedly being excluded from certain networks and commercial opportunities within their own country.
There are even Chinese operated construction companies and Chinese owned construction materials suppliers in Phuket with products that have not passed regulatory controls!
There are even allegations now emerging that some of these grouse are so big that they are even paying off certain officials and uniformed groups in Bangkok to turn the other eye to their illegal activities!
Critics are asking whether the economic benefits generated by Phuket’s massive hospitality industry are being sufficiently distributed among Thai-owned companies or whether established foreign networks are increasingly controlling opportunities throughout the hospitality supply chain.
Claims of Supporting Thai Farmers and Local Talent Questioned
Questions are also being asked about claims made by some foreign businesses that they are assisting Thai farmers by sourcing local ingredients or helping to develop local Thai talent and communities.
Critics allege that, in some cases, such initiatives amount primarily to a front or public-relations exercise rather than genuine Thai economic participation.
There are also allegations that certain foreigners have favored particular Thais personally associated with them (who the locals describe as whores and children f whores who are associating with these racist whites) while excluding broader Thai participation.
These allegations have further fueled resentment among Thais who believe that opportunities within Phuket’s hospitality industry should be distributed more fairly and transparently.
Petition Reportedly Seeks Revocation of Foreigner’s Visa
One white foreign individual that is often referred to as the “white potatohead” has reportedly now become the target of a petition by Thais seeking to have his visa revoked, irrespective of his claims that he has helped Thailand’s hospitality industry or that he enjoys the support of prominent Thais and hoteliers. He is also close to a real estate, media and tech establishment linked to a couple of whites that used monies generated from boiler scams to fund their businesses. (Separate legal issues are currently gaining steam in Bangkok with lots of Thai entities grouping together to do something about this entity with evidence collated from some of their ex-staff)
The development highlights the increasingly contentious atmosphere surrounding foreign involvement in Phuket’s hospitality sector and the growing willingness of some Thais to challenge individuals who have established considerable influence within the industry.
Who Has Really Benefited from Phuket’s Development?
When some foreign investors claim that they helped develop Phuket, a growing number of Thais are now asking a more difficult question: what kind of development has actually taken place, and who has ultimately benefited from it?
If foreign investment has operated alongside corruption, questionable nominee structures, the marginalization of Thai professionals and businesses, and the movement of profits generated in Thailand overseas, critics argue that the contribution of such investment deserves far greater scrutiny.
They point to the current state of Phuket itself as evidence that these questions can no longer be ignored.
The issue is no longer simply whether foreign investment contributed to Phuket’s growth. The emerging debate is increasingly focused on how much of the wealth created by that growth remains in Thailand and how much ultimately flows overseas.
Growing Calls for Bangkok to Exert Greater Control Over Phuket
For the emerging Thai activist groups, the issue is therefore not simply who invested in Phuket in the past.
It is about who controls Phuket’s hospitality economy today, who receives its economic benefits, who is given access to its employment and commercial opportunities, and how much of the enormous wealth generated by the island ultimately remains in Thailand.
There are consequently growing calls for Thailand’s central government to take a much closer look at foreign ownership structures, nominee arrangements, work permits, senior hospitality appointments and the commercial networks operating throughout Phuket.
Their message is becoming increasingly clear: Phuket is in Thailand, and Thais should no longer be marginalized from meaningful ownership, employment, business opportunities and participation in one of the country’s most valuable tourism economies.
