Tourism industry representatives from Koh Samui and Koh Phangan have voiced their support behind a government crackdown on “mafia-linked influence networks” in Thailand, warning that extortion, price gouging, and illegal land occupation are damaging the islands’ reputations and undermining fair competition.
Ratchaporn Poolsawat, vice president of the Tourism Council of Thailand and former president of the Koh Samui Tourism Promotion Association, noted that the term “mafia” in a tourism context extends beyond traditional organised crime.
Speaking yesterday, June 17, he said it encompasses any structure operating outside the law, including businesses that exploit tourists, monopolise public spaces for private gain, or use illegal nominees to conceal foreign ownership.
The private sector is calling on the government to adopt a zero-tolerance approach, with equal and consistent enforcement of the law across all operators. Ratchaporn also proposed bringing informal businesses into the formal tax system.
“When taxation reaches these businesses, the state becomes the regulator and revenue collector transparently. This will close the gaps that allow individuals or mafia groups to collect illegal payments or receive kickbacks sustainably.”
Representatives also called for stricter screening of foreign nationals seeking to do business in Thailand, urging immigration officials to conduct more rigorous background checks to filter out those who do not qualify as genuine tourists or investors.
State agencies have already begun conducting inspections on Koh Samui and Koh Phangan, with a focus on dismantling nominee structures used by foreign capital to hold assets and operate businesses illegally. Authorities have also been working to regulate public transport on the islands to prevent monopolisation and disruption to tourists.
Ratchaporn said the industry’s biggest concern remained image. Incidents of confrontation between tourists and local criminal networks tend to spread widely and make destinations appear unsafe, he said, adding that all sectors now need to work together to restore a positive reputation.
“If the government can clear out the mafia and restore the safety image in time, it will attract enormous investment and allow Thai tourism to grow throughout the year, with no more high season or low season, entering the third and fourth quarters on a strong footing.”
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