PUBLISHED: 22 Oct 2024 at 05: 05
In an effort to shield local firms from unfair competition, the Senate is urging the government to repress nearby businesses owned by regional proxies of foreigners.
Hospitality and Sports Minister Sorawong Thienthong stated that government staff have met with affected local providers to develop a solution to the issue in a meeting to address a question raised by Senator Nantana Nantavaropas regarding actions to support Thai companies struggling to compete with those run by nominees.
According to Mr. Sorawong, regional proxies are threatening to rule the hospitality industry, which is one of the country’s biggest foreign trade workers.
The secretary said the first step is to remove foreign tour guides from all holiday destinations.
According to Mr. Sorawong, the Thai government has the authority to move tourism organizations only. In companies with foreign shareholders, Thai shareholders must hold no less than 51 % of the shares.
To address the issue, the department will collaborate with the Immigration Bureau, Tourism Police Bureau, Tourism Development Bureau, and the Department of Business Development to conduct an investigation into international companies that are suspected of employing local nominees.
The minister claimed that despite the large international travel demand, many businesses in the tourism market are struggling, and that potential constraints, which persist after the Covid-19 crisis, are preventing the sector’s recovery.
He claimed that the government is working with carriers to recover flight routes that were eliminated during the pandemic in an effort to boost power for the upcoming high tourism season, which is scheduled to begin next month.
According to him, TPB and the Department of Tourism are also working together to end “zero-dollar” travel firms, which create a completely separate tourism habitat catering to international travellers from souvenir shops and restaurants.
More than 40 zero-dollar tour firms have been closed by the authorities.