Thai govt urged to act on foreign businesses in tourism
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.
Tourism and Sports Minister Sorawong Thienthong stated that government staff have met with impacted local providers to develop a solution to the issue in a meeting to address Senator Nantana Nantavaropas ‘ question regarding methods to help Thai companies struggling to compete with nominee-run companies.
According to Mr. Sorawong, regional proxies are threatening to rule the tourism industry, which is one of the nation’s biggest foreign trade workers.
The secretary said the first step is to remove international 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 solve the issue, the government will collaborate with the Immigration Bureau, Tourism Police Bureau, Tourism Development Bureau, and the Department of Tourism to conduct an investigation into international companies 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.
TPB and the Department of Tourism are also working together to end “zero-dollar” travel companies, which, according to him, create a completely separate tourism habitat catering to international tourists from souvenir shops and restaurants.
More than 40 zero-dollar visit organizations have been closed by the government.