Phuket probes Israeli-run businesses over alleged refusal of Thai customers

PHUKET, Thailand – Provincial authorities have launched an investigation into complaints that some businesses operated by Israelis on this tourist island are refusing services to Thai customers, while also examining whether any such enterprises are linked to the illegal use of Thai nominees on behalf of foreign nationals.

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Deputy Governor Khetrath Chansilp made the comments on Tuesday after carrying out inspections in the Patong tourist area of Kathu district, where a tour company catering to Israelis and a clothing shop were among the businesses visited, with officials from the provincial office of the Department of Employment and Kathu district administration officers also present.

The inspections on Monday were in line with intensified scrutiny of foreign-operated businesses nationwide, said Pol Capt Khetrath, who is also an acting security adviser to the Interior Ministry, with investigations focusing on establishing the facts surrounding the businesses, including management, relevant documentation, and business practices.

Officials would also inspect shops that cater exclusively to Israeli customers, including businesses displaying advertising in Hebrew, he said, stressing that business operators must not discriminate between Thai and foreign customers and must strictly comply with Thai law.

The deputy governor said the island was stepping up efforts to crack down on foreign investors using Thai nominees to conceal their ownership and control of businesses, mobilising cooperation from local administrative authorities, police, kamnan and village heads, and other agencies to tackle the problem across all business sectors, including car rentals, hotels, and restaurants.

Enforcement operations in one area are intended to serve as a deterrent elsewhere, encouraging businesses to comply with the law, with officials focusing on direct inspections, thorough checks of corporate documents, and immediate legal action when violations are identified.

Phuket has a large population of both Thai and foreign residents and more than 1,000 companies with foreign shareholders, and the investigation comes amid a broader nationwide effort to address discriminatory practices and nominee arrangements in Thailand’s tourism-dependent provinces.

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The Phuket investigation signals intensified enforcement against foreign-operated businesses that fail to comply with Thai law, with authorities determined to ensure all businesses operate fairly and without discrimination against Thai customers.

-Thailand News (TN)

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