KOH PHANGNAN — Police on Koh Phangan raided four locations linked to a French-run villa business amid allegations of using Thai “nominees” to illegally operate real estate and unlicensed hotels.
The joint operation on November 7 involved officers from the Surat Thani Provincial Police, Koh Phangan Police Station, Immigration Bureau, Tourist Police, and the Koh Phangan District Office.
Police executed search warrants at four sites:
- Location 1: A company office in Moo 1, Koh Phangan subdistrict, where accounting records for four companies directed by two French nationals were kept. Officers seized documents and questioned three Thai employees.
- Location 2: An 18-villa project where units were rented to foreign tourists for 5,000 baht ($155) per night. Two Thai receptionists and two foreign guests were questioned.
- Location 3: Another 18-villa project offering daily rentals between 5,000 and 15,000 baht ($155-465). One foreign guest was questioned.
- Location 4: The project, with 29 villas under construction, where police interviewed two French project owners.
The Business Model
Investigators said the French nationals leased land from Thai owners on 30-year contracts, subdivided the plots, and built villas later sold through subleasing rights valued between 3 million and 7 million baht ($92,610 – 216,090 each.)
Some buyers used the properties themselves, while others hired the French operators to manage and rent them out for a 20% fee. Police intelligence indicated the operation generated at least 200 million baht annually from rentals and management income.
Investigation Ongoing
Authorities seized business records for further review and are questioning those involved to determine if the companies violated hotel licensing laws or used illegal nominee structures.
Police said the raid is part of a broader crackdown on foreigners running unauthorized businesses in major tourist destinations across Surat Thani province.
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