The inspections, carried out yesterday (July 23), follow a series of high-profile operations launched after the July 10 deadline for unlicensed hotels to register or face legal action.
The joint operation, led by Phuket Vice Governor Pol Lt Col Khetarat Chansilp, targeted businesses in Thalang and Phuket Town under the banner of continuing the campaign against illegal hotels, and suspected nominee ownership structures.
Officials said all five targeted establishments were found to be operating as hotels without the required licences, in violation of the Hotel Act.
The properties were named as The Proud Karon Hotel and the Phuket Moonlit Hotel on Koh Siray, The Charm Resort in Patong and the Citygate Kamala Resort, and The Wood Terrace in Thepkrasattri.
The Proud Karon Hotel, a 157-room property, was also found to have possible nominee ownership, with Russian shareholders holding 49% and Thai shareholders 51%, reported state news agency MCOT.
Phuket Moonlit Hotel, with 45 rooms, had two Thai shareholders holding a combined 74% and one Chinese shareholder holding 26%, prompting further investigation.
The Charm Resort has 246 rooms and is wholly Thai-owned, while the ownership details of the other properties were not specified.
Evidence has been collected and the cases have been forwarded to police investigators for legal proceedings.
According to an official report of Polapee’s return to Phuket yesterday, Governor Chotinrin Kerdsum said investigators would also expand their inquiries into the ownership of all five businesses after finding they had foreign shareholders.
Apparently, authorities will examine whether Thai nationals were being used as nominee shareholders to circumvent foreign ownership restrictions, including investigating shareholding structures, company links, financial transactions and the identities of the businesses’ ultimate beneficiaries.
Officials said preliminary investigations had uncovered complex ownership arrangements, including cross-shareholdings between multiple companies and individuals holding shares across several businesses, prompting a broader investigation.
Governor Chotinrin said the latest enforcement action was intended to ensure fair competition within Phuket’s tourism industry and would not affect businesses operating legally.
The latest operation is the third major hotel enforcement action in Phuket this month after authorities, under the direction of Deputy Interior Minister Polapee, warned operators to legalise their businesses before launching inspections immediately after the compliance deadline expired.
Yet Polapee, a Bhumjaithai MP for Nakhon Ratchasima, has yet to explain during any of his recent visits to Phuket how small hotels are expected to register when no legal mechanism exists for them to do so.
Regardless, officials have continued conducting raids under the banner of “expanding investigations into suspected nominee ownership” linked to some hotel businesses.
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Polapee raids follow day after hotel licensing deadline expires