KOH PHANGAN — Tourism operators on this world-famous island have praised the government’s recent crackdown on illegal nominee businesses run by foreigners, while calling for even tougher enforcement, visa reductions and fresh stimulus measures to counter a troubling decline in arrivals.

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The push for action follows a high-profile raid on a local school that was operating illegally, where most of the students were Israeli nationals. The incident exposed a web of nominee arrangements and unauthorised businesses that have flourished on the island, undermining legitimate Thai operators and tarnishing Koh Phangan’s reputation.

Naruemon Maisopa, president of the Koh Phangan Hotel and Tourism Association, said nominee issues are not unique to the island but are common across major tourist destinations nationwide. However, she warned that this persistent problem requires much stronger and more consistent enforcement from authorities if Thailand’s tourism industry is to remain competitive and fair.

Koh Phangan’s stunning beaches and abundant natural resources have long attracted foreign visitors, but Mrs. Naruemon said some exploit loopholes to extend their stays and set up businesses that violate Thai law. These include unlicensed tour companies, illegal car and boat rental services, and unauthorised accommodation rentals that employ only foreigners and divert income away from local operators.

She pointed specifically to the 60-day visa-free scheme, which she said some foreigners abuse to work illegally on the island. She urged the government to reduce the 60-day offer to a shorter period, arguing that a shorter visa-free stay would help curb illicit activities without harming genuine tourism. “These problems would not occur if the responsible agencies took firm action and enforced the law seriously from the start,” she said.

Tourism operators have been working closely with multiple stakeholders, including Israeli officials, the Interior Ministry and security agencies, to urge Israeli tourists to behave responsibly and comply with local laws. Visitors have been asked to refrain from cannabis use, excessive noise and illegal work, and to respect local culture as visitor numbers from Israel have surged in recent years.

Tourism operators on Koh Phangan have urged the government to continue cracking down on illegal businesses run by foreigners, while also improving the tourism image and rolling out further stimulus measures amid growing concerns among tourists resulting in fewer arrivals.

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Mrs. Naruemon said these issues have already deterred tourists from other markets from visiting the island, while discouraging potential investors who are willing to operate legally. “Local businesses are ready to welcome visitors from all markets on an equal basis,” she said, noting that the island is home to a diverse heritage, including Buddhist temples, mosques and Chabad houses.

In addition to stricter enforcement, Mrs. Naruemon called on the government to invest more in promoting Koh Phangan as a destination for skilled long-stay travellers who can contribute to local development and share knowledge with communities. Such visitors, she argued, would bring more sustainable economic benefits than the short-term, high-impact tourism the island has become known for.

The island is now facing a severe low season, worsened by the Middle East crisis, which has driven up operating costs and reduced arrivals due to high airfares. Hotels in some areas expect occupancy rates to fall below 40 percent this month, and the next Full Moon Party — the island’s signature event — is likely to see a sharp decrease in attendance, according to Mrs. Naruemon.

Regarding the government’s ambitious Land Bridge project, she expressed support but stressed that it must minimise environmental impacts and feature ports and logistics systems designed to support tourism, not just industrial cargo.

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For Koh Phangan, a paradise built on white sand and moonlit parties, the challenges are mounting. Illegal businesses, nominee loopholes and a reliance on a single market have left the island vulnerable. The crackdown on the illegal school was a start, but operators say much more is needed. If the government does not act, they warn, the tourists will go elsewhere — and Koh Phangan’s reputation may never recover.

-Thailand News (TN)