Immigration police raid Koh Phangan hotels, arrest three Israelis and pursue a fourth, targeting illegal nominee firms controlling resorts. Eight people were detained in total, sending shockwaves through southern Thailand’s tourism sector and warning foreigners against illegal operations that previously had been widely accepted.
The Immigration Bureau’s blitz on foreign-run businesses in Koh Phangan escalated Friday, with raids on two hotels run by Israelis and three arrests, while a fourth Israeli remains at large. Eight people in total, including staff illegally employed through nominee arrangements, were detained, and some companies seemingly controlled by Thais were effectively run by foreign directors, sending shockwaves through southern Thailand’s tourism industry and signaling that authorities will no longer tolerate illegal foreign control of hotels and resorts.
On Friday, Immigration Bureau police arrested or are seeking to arrest four Israeli businesspeople in Koh Phangan as part of a sweeping crackdown. The operation aims to dismantle illegal nominee businesses that skirt Thai ownership laws. Consequently, authorities warned that foreign investors can no longer use Thai proxies to control tourism companies.
Two Israelis were detained at the Hotel Arcana, a luxury resort offering rooms, suites, and villas. The hotel markets itself as an upmarket wellness retreat and features a large swimming pool, gym, steam room, and ice baths.
However, police sources confirmed the hotel was operating without a valid permit.
Israeli-run hotels and resorts raided as authorities expose illegal nominee businesses on Koh Phangan
Meanwhile, Immigration Bureau units also raided a restaurant and guesthouse in Thong Sala village. There, officers discovered two Myanmar workers employed illegally in roles prohibited for foreigners. These workers were serving coffee and handling cash at the café, violating labour laws.
At Hotel Arcana, Mr. Guy, an Israeli national, and Mr. Suwichanon, a Thai national, were charged with operating the hotel without proper authorisation. In addition, Mr. Sean Gal, another Israeli working as the hotel manager, faced charges for exceeding visa permissions. Two Myanmar workers were also detained for illegal employment.
At Blessings Home and Café, the registered employer, Mr. Panupong, a Thai national, was charged with allowing foreigners to work illegally. However, investigations revealed that Ms. Yara, an Israeli listed as a company director, was the true owner. Authorities are actively pursuing her as the fourth Israeli suspect.
In total, eight people were taken into custody during the operation: three Israelis, two Thais, and three Myanmar workers. Police confirmed that investigations are ongoing and warned that additional arrests may follow.
8 people detained as raids uncover illegal employment and foreign-controlled businesses in Koh Phangan
Police Lieutenant General Phanumat Bunlaksana, Immigration Bureau Commissioner, stated the operation aligns with national policies targeting transnational criminal groups.
He added that nominee business schemes harm Thailand’s economy and tarnish the tourism sector’s reputation. Moreover, he emphasised that violators would face severe legal consequences.
Furthermore, authorities clarified that the crackdown is not limited to Koh Phangan. Other southern Thailand tourist hubs, especially Koh Samui, are being monitored for similar illegal activities. The bureau stressed that foreign nationals must fully comply with Thai ownership and labour regulations.
Police also opened a 24-hour hotline at 1178, encouraging citizens to report suspicious foreign-owned businesses. “We need the public’s help to identify illegal operations,” a spokesperson said. “Any tip could prevent further violations.”
Authorities issue warning and open hotline as crackdown spreads beyond Koh Phangan to other tourist hubs
The crackdown specifically targets businesses using Thai nominees to front companies. Officials said this practice allows foreigners to secretly control hotels, restaurants, and other tourism facilities. Therefore, authorities are intensifying inspections to uncover and close these operations.
Hotel Arcana and Blessings Home and Café have been ordered to cease operations until authorities complete their investigations. In addition, the police plan to audit other resorts and tourism-related businesses on Koh Phangan for similar violations. Consequently, local business owners are warned to ensure full legal compliance.
Observers note the crackdown may affect tourism temporarily, as Koh Phangan has a reputation for foreign-operated seasonal businesses. Nevertheless, police insisted enforcement is necessary to maintain legal integrity and fairness for law-abiding operators.
Authorities said the crackdown could serve as a blueprint for similar operations nationwide. The initiative includes audits of company registrations, visa compliance checks, and labour inspections. Furthermore, these measures aim to prevent exploitation of Thai laws through nominee schemes and illegal employment.
Crackdown intensifies as authorities target illegal nominee businesses and foreign-controlled tourism
Arrests at Hotel Arcana highlight the ongoing threat of foreigners bypassing visa regulations. Arrested Israelis face charges of operating a hotel without proper permits, while Myanmar workers face penalties for illegal employment. Thai nationals involved may face fines and additional labour law charges.
Police emphasised the critical role of cooperation between Immigration Police, Provincial Police, Tourist Police, and local officials. The operation demonstrated that coordinated enforcement can uncover complex nominee schemes.
Additionally, officials stressed that failure to comply with regulations carries significant criminal consequences. Authorities continue to monitor foreign-controlled businesses across the southern region. Police warned that any business attempting to circumvent ownership laws risks closure, prosecution and permanent restrictions. Moreover, officials plan to expand the crackdown to other islands where illegal foreign control is suspected.
Coordinated police operations warn foreigners that illegal business practices face severe legal consequences
The arrests also sent a warning to investors exploiting Thailand’s tourism sector. Authorities stressed that legal compliance is not optional and that nominee schemes would no longer be tolerated. Businesses operating illegally face immediate closure, fines and possible imprisonment of key executives.
Local residents and tourists are urged to remain vigilant. Authorities noted that reporting suspicious operations could help prevent the continuation of illegal nominee schemes. Police emphasised that the public’s assistance is critical to protecting Thailand’s economy and tourism industry.
The Koh Phangan operation is the latest step in a broader national effort to enforce business laws strictly. Police stated that maintaining regulatory integrity in the tourism sector is essential for both domestic and international confidence.
Koh Phangan crackdown signals zero-tolerance enforcement and is a warning to foreign investors
As investigations continue, authorities promise further actions to ensure compliance. Overall, the crackdown signals a zero-tolerance approach to illegal foreign influence in Thailand’s tourism industry. Authorities affirmed that nominee schemes will be dismantled and illegal labour practices prosecuted. For now, Koh Phangan serves as a stark example of the government’s commitment to legal enforcement.
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This crackdown is coming as a shock to thousands of foreign business owners in southern Thailand and indeed across the kingdom. It flies in the face of long-accepted business principles that were wrongly accepted.
Certainly, large and well-established legal firms have long warned foreigners about the dangers of using Thai nominee firms and arrangements. Now the new government of Prime Minister Anutin Charnvirakul is bringing those chickens home to roost.
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Arrogant Lebanese man held on Koh Phangan for illegal bike rental racket after being deported before
