Govt to crackdown on foreign run tourism-related businesses

[buksida]

The Tourist Police Division has called on the Commerce Ministry and the Revenue Department to inspect tourism-related businesses run by foreigners in Thailand.

Pol Maj Gen Roy Inkapairoj, commander of the Tourist Police, said on Sunday foreigners were using Thai nominees to open businesses such as restaurants, hotels, massage shops and jewellery shops.

Relevant agencies such as the Commerce Ministry and the Revenue Department should check the stakeholders of these businesses and their tax records and see whether they are legitimate because they are "hurting the image of Thai tourism", he said.

"Tourists buy their products and services and the revenue goes to the foreign owners instead of the Thai economy," Pol Maj Gen Roy said.

He said changes to investment laws might be necessary to suppress the nominee companies.

"Many foreign investors who run nominee companies here are from Russia, India and China and the number is increasing," he said.

Source: BKK Post

Thought: Ooooh no, those evil farangs are hurting Thailand's precious image again by opening businesses, generating commerce, stocking up from Thai outlets, renting premises from locals, employing Thais, boosting tourism and economy, and (usually) spending most of their earnings right here in Thailand ... lets stop them!

[margaretcarnes]

Gawd strewth what are they like? Without foreign investment and input there'd still be only one hotel in Bangkok suitable for tourists, no Sky Train, no subway, no Friendship Bridge, no silk exports... and they'd probably all be speaking Japanese.

[MrPlum]

Remember when the UK gave huge incentives to foreign companies to set up, just to provide local employment?

[johnnyk]

Cop frothings. All he knows about business is that he gets 20% at month's end.

[Winkie]

Remember when the UK gave huge incentives to foreign companies to set up, just to provide local employment?

In fairness, Thailand does this, very successfully.

[Winkie]

Gawd strewth what are they like? Without foreign investment and input there'd still be only one hotel in Bangkok suitable for tourists, no Sky Train, no subway, no Friendship Bridge, no silk exports... and they'd probably all be speaking Japanese.

I think the message is, to stop those that are bucking the system, using loopholes and Nominees to avoid the systems that already exist for Foreign investment, Foreign Ownership of Business, and Employment of Foreign workers. Let's face it, those that are exploiting all the loopholes, are likely to be doing the same and avoiding paying local taxes too.

[Terry]

Thought: Ooooh no, those evil farangs are hurting Thailand's precious image again by opening businesses, generating commerce, stocking up from Thai outlets, renting premises from locals, employing Thais, boosting tourism and economy, and (usually) spending most of their earnings right here in Thailand ... lets stop them!

Add to that - paying Thai employee income tax and insurances, business taxes, licenses, contributions to charities etc etc..................

[Takiap]

Gawd strewth what are they like? Without foreign investment and input there'd still be only one hotel in Bangkok suitable for tourists, no Sky Train, no subway, no Friendship Bridge, no silk exports... and they'd probably all be speaking Japanese.

I think the message is, to stop those that are bucking the system, using loopholes and Nominees to avoid the systems that already exist for Foreign investment, Foreign Ownership of Business, and Employment of Foreign workers. Let's face it, those that are exploiting all the loopholes, are likely to be doing the same and avoiding paying local taxes too.

Don't you think there should perhaps be a few exceptions regarding current investment laws?

Let's take a simple example along the lines of an Indian restaurant:


An Indian comes and stays in Thailand legally, and then wants open a small restaurant. The only way his restaurant can offer genuine/authentic Indian food is if he purchases all the necessary Indian ingredients, and employs Indians to work in the kitchen since Thais can't cook Indian food.

Maybe he needs at least two Indian employees in the kitchen, which then mean he has to employ eight Thais at the minimum wage of 300 baht per day or more. He has to pay rent, he has to pay inflated prices for imported ingredients, he has to pay his Indian staff as well, and of course he has to pay all the other expenses regarding employees (as Terry has mentioned).

Let's face it, he restaurant would need to be quite big, and it would have to be a phenomenal success just for his to break even. Of course he is going to try and buck the system.


Of course you say rules are rules, so if he can't generate enough profit cover all those overheads, then he should pack his bags and leave. All fair and well, but as a result, everyone else suffers as well because then we can't eat Indian, so it's back to the noodle stand we go.

A town with 300 somtam sellers and 300 noodle stalls is going to be far less appealing to tourists than a town that has far more variety.

Maybe if more Thais were willing to put in a bit of effort to learn how to prepare foreign dishes and etc, there'd be less opportunity of foreigners to play the system in the first place.

Anyway, none of this really concerns me, and besides, it seems it's just a single policeman voicing his opinion, rather that Thailand as a country say there's going to be a crackdown.