Tourist Police in Thailand announced a continuation of the crackdown on illegal hotels. Tourist Police also continue to locate and get rid of tour operators using Thai people as a “front” for foreign tour companies.

Thailand Hotels Associations have lobbied governments for more than a decade to address the issue of illegal hotel operators, calling for new legislation and protection for registered hotels that are disadvantaged. Legal hotels pay tax, license fees and other charges while facing competition from non-registered hotels that undercut rates.

In a report by hospitality consulting group C9 Hotelworks, less than a quarter of the hotels in Phuket are licensed. While the private sector builds more hotels, the government-funded infrastructure projects are not benefiting from the inflow of tourism. Without proper licensing, these unofficial hotels also lack proper safety and regulation.

Recently, 10 illegal hotels were found operating in Krabi’s Ao Nang tourism area, following a crackdown by Krabi officials and members of the Royal Thai Army. The charge was led by Krabi’s vice governor Apian Pueakpong, accompanied by more than 50 officers and soldiers.

The illegal hotels failed to seek permission for renovation work or to conduct and host tour guide businesses. Some hotels were also found to have failed to report illegal migrant workers. In those cases, immediate action was taken.

The illegal hotels have been given a warning to comply with laws, failing which legal action will be taken. Illegal taxis in the area will also be monitored.

Condominiums, apartments and villas have been found to operate as hotels, some of which are being converted into hostels. Tour companies have also been found to use condominiums as accommodations for tourists.