Unprecedented crackdown on foreign firms rolls on as police raid a French-run Koh Phangan resort, arrest a 32-year-old French operator and 4 Burmese workers, shut an unlicensed 11-unit hotel and warn the island-wide crackdown on illegal tourism businesses is accelerating.
The crackdown on illicit foreign-run businesses on Koh Phangan showed no sign of slowing on Sunday, when police stormed a health resort on the island and shut it down, arresting a 32-year-old French man accused of operating an illegal hotel and taking four Burmese nationals into custody after officers found them working illegally at the resort, with police later confirming the raid was triggered by a tip-off.
Thai authorities arrested a French national and four Myanmar workers after uncovering an illegal resort on Koh Phangan. The arrests followed a coordinated raid on Dec. 14, 2025. The operation took place in Surat Thani province, according to officials.
The action, meanwhile, formed part of an ongoing crackdown on illegal foreign-run businesses. Koh Phangan remains a major tourism destination in southern Thailand. As a result, authorities have increased enforcement activity across the island.
Immigration police in Surat Thani led the inspection. At the same time, provincial police and local administrative officers joined the operation. Authorities said they acted after receiving specific information about unlawful activity.
Police uncover unlicensed resort in Ban Tai with daily rentals, multiple units and added services
The target was a resort in the Ban Tai subdistrict. According to police, the property was operating without required authorisation. Officers entered the site during daytime hours. During the inspection, police documented the scale of the business. The resort contained 11 accommodation units. All units were offered as daily rentals, officials said.
According to investigators, nightly rates ranged from ฿2,000 to ฿4,000. The prices ranged roughly $63 to $128. Payments were collected directly at the property.
In addition, officers confirmed the resort provided extra services. These included an on-site restaurant. A fitness area was also operating, police said.
However, authorities said the resort lacked a valid hotel business license. Under Thai law, such operations require formal approval. Consequently, the business was deemed illegal.
French man named as operator failed to produce hotel license or authority to run a lodging service
Police identified the operator as Mr. Arnaud, aged 32. He is a French national, according to immigration records. He was listed as a company director linked to the resort. When questioned, Arnaud failed to produce a valid license. Moreover, police said he could not show authorisation to operate lodging services. As a result, officers placed him under arrest.
Photographs released by authorities showed Arnaud at the scene. He was wearing a red shirt during the arrest. Officers restrained him before escorting him away. Meanwhile, police expanded the inspection to the resort’s workforce. Inside the property, officers found four Myanmar nationals. All were actively working at the time.
According to police, the workers held several roles. One worked as a cashier. Others were assigned as waitstaff and dishwashers. Authorities said the workers failed to notify officials of their employment. Thai regulations require notification within 15 days. That requirement was not met, police said.
In addition, officials said the workers exceeded their permitted job scope. Foreign workers in Thailand face strict job limitations. Police said these roles violated those limits.
Multiple criminal charges filed against French operator for illegal hotel operation and labor violations
Consequently, officers arrested all four Myanmar nationals. They were taken into custody at the scene. Authorities later confirmed formal charges. Arnaud now faces multiple charges under Thai law. First, he was charged with jointly operating a hotel business without authorisation. That offence carries criminal penalties.
Second, police charged him with working beyond permitted foreign job categories. Foreign nationals are restricted from certain occupations. Authorities said Arnaud violated those rules.
Third, he was charged with employing foreign workers unlawfully. According to police, labour regulations were breached. Employment documentation was incomplete.
Finally, Arnaud was charged with failing to report foreign employment within 15 days. Officials said timely reporting is mandatory. The failure triggered additional violations.
Myanmar workers charged separately as authorities step up enforcement across Koh Phangan
Meanwhile, the four Myanmar workers faced separate charges. Police charged them with failing to notify authorities within the required period. Each worker faced the same allegation. They were also charged with working outside their permitted job scope. According to officials, the positions were not authorised. As a result, all four were detained.
Authorities transported the suspects for legal processing. Police did not disclose bail conditions. Court proceedings were not immediately detailed.
The raid was one of several recent enforcement actions. Authorities said Koh Phangan remains under close monitoring. Inspections have increased across tourist zones.
According to officials, illegal resorts undermine regulatory oversight. Unlicensed operations also bypass safety and labour standards. Therefore, authorities intensified checks. Lt. Gen. Phanumart Boonyalak addressed the operation publicly. He is the commissioner of the Immigration Bureau. He confirmed the objectives of the raid.
Immigration chief says raids protect tourists and Koh Phangan’s reputation from illegal operators
According to the commissioner, the operation aimed to reinforce tourist confidence. He said enforcement protects visitors from illegal operators. He also cited reputational risks to the island.
Furthermore, he said illegal businesses damage Koh Phangan’s image. Authorities view tourism reputation as critical. Consequently, enforcement remains a priority.
Police released multiple images from the raid. Some showed officers inspecting buildings. Others documented arrests and evidence collection. Officials said inspections focused on licencing compliance. Immigration status was also examined. Labour documentation formed a key part of the review.
Authorities reiterated legal requirements for foreign operators. Businesses must hold valid licenses before operating. Employment of foreign workers must be reported promptly. Police said violations will result in arrest. Prosecution will follow established legal procedures. Enforcement actions are expected to continue.
Koh Phangan hospitality sector under scrutiny as tourism growth fuels tighter foreign business controls
Koh Phangan attracts large numbers of international tourists. The island hosts resorts, rental properties, and nightlife venues. As tourism grows, enforcement has tightened. Officials said foreign nationals frequently attempt to operate businesses illegally. Authorities have identified hospitality as a high-risk sector. Daily rental properties remain under scrutiny.
The Dec. 14 raid highlighted ongoing violations. According to police, the resort operated openly. Advertising and daily rentals were observed. Despite its scale, the resort lacked authorisation. Authorities said the operation had continued unlawfully. No license records were found.
Police confirmed the investigation remains active. Additional charges could follow if new violations emerge. Officials said further inspections are planned. For now, the five suspects remain under legal process. Authorities said enforcement will continue island-wide. Koh Phangan remains a focal point of the crackdown.
Authorities warn foreign investors unlicenced concerns and nominees no longer be tolerated
The message to foreign businesspeople on the island is clear. The days of anything-goes entrepreneurship without regard for the law and legal requirements are over. All business concerns must be properly licenced and compliant with national and local laws before they can open their doors to the public.
35-year-old Frenchman arrested on Koh Phangan on Sunday for rape as island-wide swoop nets 6 suspects
Ten foreign Poker players arrested in a police swoop on a rented house in Koh Phangan on Tuesday night
Koh Phangan crackdown continues as Thai officials send a message. Illegal investors are not wanted
The days of legal workarounds, particularly through the use of Thai limited companies, are over. Police and officials are now looking behind official listings on such companies to determine what is happening and who is in control. The mission is explicitly aimed at business enterprises that target profits to be made from the foreign tourism industry, which should be reserved for Thai nationals and genuinely Thai-owned concerns.
Immigration Bureau and Department of Business Development (DBD) officials have warned that the crackdown on Koh Phangan is being extended to other provinces where there are large foreign populations and business activities.
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Further reading:
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