PATTAYA, Thailand – As Thailand’s economy faces pressure from global uncertainty, rising energy costs, geopolitical tensions, and a slower-than-expected tourism recovery, investigations into the use of “nominees” to hold land or operate businesses in Chonburi have become a major issue for government agencies, business operators, and local communities. While stronger enforcement is seen as necessary to ensure fair competition and protect Thai businesses, some operators say increased scrutiny has also created caution among investors and affected market confidence, particularly in property and business sectors in the short term.
Thailand’s economic slowdown has been felt strongly in Pattaya, where tourism remains the backbone of the local economy. External pressures, including conflicts in the Middle East that have affected energy prices, operating costs, inflation, and consumer spending, have added further challenges for businesses. Although government economic measures have been introduced, many operators say the recovery has not yet reached expected levels. International visitor numbers remain below previous expectations, affecting hotels, restaurants, entertainment venues, and service businesses across the city.
A Pattaya hotel operator said the current low season has been quieter than expected, with occupancy rates falling as some key markets have not fully recovered. “Chinese tourists have not fully returned, European markets are entering their quieter season, while Indian visitors are increasing but have different spending patterns compared with traditional markets,” the operator said. Restaurant and entertainment business owners have also reported weaker customer spending, with many reducing costs, adjusting staffing levels, and introducing promotions to maintain customers. “People are more careful with their spending. Many businesses are trying to survive because labor costs, electricity bills, and raw material prices remain high,” one operator said.
The debate over nominees has attracted attention from residents and business groups, particularly regarding allegations that foreign investors may use Thai individuals or companies as representatives to bypass legal restrictions on ownership and business activities. A Pattaya property developer said that if nominee arrangements exist, the impact goes beyond legal violations. “Foreign investors who follow the law are welcome, but using Thai people as representatives to avoid restrictions creates an unfair advantage and damages confidence among businesses that operate legally,” the developer said. Concerns have also been raised that illegal nominee structures could contribute to distorted property prices, making it harder for genuine Thai operators to compete and potentially affecting the long-term economic balance of the area.
Under Thai law, using Thai nationals to hold shares, land, or assets on behalf of foreigners to avoid legal restrictions may violate the Foreign Business Act B.E. 2542 and related regulations.
Several government agencies are involved in monitoring and enforcement, including:
- The Department of Business Development, which examines company ownership structures and business operations.
- The Department of Lands, which reviews land ownership and transactions.
- The Department of Special Investigation (DSI), when cases involve complex networks or wider impacts.
- The Anti-Money Laundering Office (AMLO), when suspicious financial activity is identified.
- Immigration authorities, when visa or business activity violations are involved.
The Ministry of Commerce has said it will continue examining suspected businesses to ensure fair competition and maintain confidence among legitimate investors.
Economists say action against illegal nominee arrangements should not be viewed as restricting foreign investment, but rather as improving transparency and creating a fairer business environment. While investigations may temporarily slow some property transactions or investment activity, experts believe stronger legal standards could improve confidence among investors who follow regulations and strengthen Thailand’s international reputation over the long term.
For Pattaya, an international tourism destination driven by services, property, and foreign investment, the challenge is finding the right balance between welcoming legitimate international investment and enforcing the law. Transparent, fair, and consistent investigations into nominee structures could protect national interests while creating a more level playing field for Thai businesses and strengthening confidence in Pattaya and Chonburi’s economy.
