Thailand’s nationwide crackdown on illegal foreign businesses has hit Phuket hard. Police raided five Israeli-linked firms — including restaurants and a tour outlet — arresting four foreigners in a major push to end nominee ownership and restore Thai control of tourism.
A nationwide crackdown ordered by Prime Minister Anutin Charnvirakul has hit Phuket after sweeping Koh Phangan, with police raiding five foreign-run businesses linked to Israeli nationals, including a barber shop, a motorbike rental outlet, a tour agency, and two restaurants. Four foreigners were arrested and illegal workers found. Authorities said the raids targeted Thai-registered firms fronting for foreign owners in breach of the 1999 Foreign Business Act, part of a wider push to shut down nominee companies and reclaim Thai control of the tourism industry.
Police in Phuket raided a barber shop and seized motorbikes from a rental outlet Friday, arresting four foreigners. Authorities say the businesses, run through Thai companies, violated the 1999 Foreign Business Act. (Source: Phuket Newshawk)
Thailand’s nationwide crackdown on illegal foreign business operations has reached Phuket with full force. In an intense, multi-agency sweep last Thursday, authorities raided five commercial premises in Patong, arresting four foreign nationals suspected of running restricted businesses under Thai law.
The operation, which followed weeks of coordinated raids on Koh Phangan in Surat Thani, marks the latest stage of an expanding national campaign. It targets foreigners who operate or control Thai-registered companies in violation of the Foreign Business Act of 1999.
According to officials, the order came directly from interim Prime Minister Anutin Charnvirakul, who has made the issue a political priority. He has repeatedly promised Thai voters that the government will act decisively against foreign encroachment in the country’s tourism industry.
Crackdown widens to Phuket as officials target illegal foreign operations and nominee-controlled firms
Phuket, one of Thailand’s most popular international destinations, was selected for this phase due to mounting public complaints. Residents in Patong and nearby areas reported groups of foreign nationals allegedly managing local businesses through Thai nominees.
As a result, police opened investigations into operations along Phra Barami Road and Rat Uthit 200 Pi Road, two of Phuket’s busiest tourist corridors.
Phuket Immigration Police led the enforcement action, supported by an extensive task force. The team included officers from the Crime Suppression Division, Provincial Police Region 8, Patong Police Station, Tourist Police Bureau, and the Phuket Provincial Administration. Together, they executed search warrant No. 242/68, issued by the Phuket Provincial Court on October 22.
At exactly 12:30 p.m. the following day, the combined units launched simultaneous raids across Patong. The main targets were a motorcycle rental shop, a travel service outlet, a barber shop, and two Israeli-run restaurants. Officers seized documents, work permits, and company records for immediate review.
Police raid five Patong businesses and seize evidence from foreign-run outlets accused of legal breaches
During the first raid, police detained an Israeli national who claimed to be the owner and manager of a motorcycle rental business. He admitted to running the shop himself, employing three Thai workers and two Myanmar nationals.
The Myanmar employees held valid work permits, but investigators found that the Thai nominee listed as the company owner had no involvement in daily operations.
Authorities concluded that the Israeli national exercised full control, indicating a potential nominee arrangement. Under Thai law, such arrangements are illegal if a Thai citizen’s name is used solely to mask foreign ownership. Officers confiscated 66 motorcycles, along with financial records, and submitted them to investigators at Patong Police Station.
Meanwhile, further searches revealed two other Patong establishments operating under similar circumstances. The travel outlet and barber shop were also managed by the same foreigner, who handled customers and payments personally.
Officials stated that these services are classified as restricted businesses under List 3, Section 21 of the Foreign Business Act.
Investigators uncover nominee ownership and direct control by Israelis in Phuket business raids
Although the establishments displayed a Thai-registered business name, the actual control and profits appeared to rest with the foreign operator. Evidence from the raids is now being compiled to pursue charges against all involved.
As the sweep continued, officers inspected two nearby restaurants. One, an Israeli-themed eatery, was run by another Israeli man who admitted he owned and managed the venue himself. He said he cooked food, served customers, and collected money personally.
Documents were seized for investigation, and further evidence is being analysed to determine the extent of legal violations.
According to immigration officials, four businesses clearly breached the law, while one remains under review. Four foreign nationals were arrested and charged with operating restricted businesses. Their identities were withheld pending further legal proceedings.
Speaking after the raids, Police General Kittirat Phanpetch, Commissioner-General of the Royal Thai Police, confirmed that the Phuket operation formed part of a wider directive. “This is a national policy,” he said. “We are targeting foreigners who violate our laws, damage Thailand’s image, or pose risks to public safety.”
Authorities confirm Phuket raids part of national policy to curb foreign encroachment and restore compliance
Under Anutin’s interim administration, immigration and crime suppression agencies have been ordered to intensify checks in major tourism zones.
The move follows similar raids on Koh Phangan, where European and Israeli nationals were found running local businesses illegally. It also echoes cases in Bangkok, where two Chinese nationals were recently detained for operating a hostel and selling unlicensed medical products.
Officials say the goal is not to discourage legitimate foreign investment but to ensure compliance and fairness. “Thailand welcomes investors who follow the law,” said one senior Immigration Bureau source. “But we will not tolerate foreigners using Thai citizens as nominees to control prohibited businesses.”
The Foreign Business Act restricts foreign ownership in 43 categories of service enterprises. These include restaurants, tour services, and motorbike rental operations — sectors considered crucial to Thai livelihoods. Foreigners may only operate such businesses if granted specific exemptions or joint venture status with Thai partners.
Officials say crackdown about fairness and reaffirming rules on restricted sectors and nominee misuse
The crackdown has sent a strong signal across the country’s tourism economy. Local observers say it reflects growing political and social pressure to protect Thai-owned businesses, particularly in resort towns where foreign operators have gained significant influence.
Moreover, the coordinated structure of the Phuket operation demonstrates a new level of law enforcement integration. Immigration officers, crime suppression units, and provincial administrators worked side by side.
Each agency provided intelligence, manpower, and logistical support. Officials have pledged to repeat similar actions in Chiang Mai, Pattaya, and Samui in the coming weeks.
Authorities also encouraged residents to report illegal foreign operations through provincial hotlines. The Interior Ministry said public cooperation is essential for uncovering nominee networks and enforcing the law consistently.
Agencies pledge more raids as nationwide effort grows to protect Thai tourism and expose nominee networks
As the investigation continues, police will trace company records, financial transactions and property leases linked to the arrested suspects.
Officials confirmed that evidence will be submitted to the Phuket Provincial Prosecutor for further action. If convicted, offenders face fines of up to one million baht and possible imprisonment.
Crackdown to wipe out foreign business abuses and ownership on Koh Phangan & Koh Samui intensifies
Crackdown on foreign business on Koh Samui using firms with nominees shareholders. Focus on villas
Thailand’s government has stressed that its crackdown is about restoring balance, not hostility. Yet the message remains unmistakably firm: foreigners who break the rules will be prosecuted, and their businesses shut down.
The Phuket raids certainly mark a clear warning that Thailand is reclaiming control over its tourism economy. For now, authorities say, the campaign is far from over — and more arrests are expected.
Join the Thai News forum, follow Thai Examiner on Facebook here
Receive all our stories as they come out on Telegram here
Follow Thai Examiner here
Further reading:
Crackdown to wipe out foreign business abuses and ownership on Koh Phangan & Koh Samui intensifies
Raids on foreign owned hotels on Koh Phangan carry on with three Israelis arrested and a fourth sought
Fears grow among foreign business owners after Koh Phangan blitz sees German, French and Israelis held
Arrogant Lebanese man held on Koh Phangan for illegal bike rental racket after being deported before
Alarm raised by Police over Israelis on Koh Samui and Koh Phangan passing off counterfeit dollar bills
Officials on Koh Phangan launch inquiry after locals complain the island is becoming a second Tel Aviv
Innovative Russian drug dealer and top DJ arrested on Koh Phangan peddling drugs to foreign tourists online
Drug taking hotelier, a Frenchman, arrested by police on Koh Phangan in a major local police operation
33-year-old Israeli entrepreneur arrested on Koh Phangan following illegal motorbike rental service raid
Israeli in Phuket nabbed by police for motorbike theft at his hotel in Thalang. Faces up to 3 years in prison
