Some scammers professing to be an overseas direct-selling and multi-level marketing firm
More than a hundred tour operators are at risk of breaking the law for using nominees or a price-dumping strategy, while new fraudulent tactics offer cheap tours disguised as direct sales or multi-level marketing companies, according to Thailand’s Tourism Department.
Jaturon Phakdeewanit, director-general of the department, said on Friday that the number of suspected illegal tour companies might be relatively small compared with 13,000 licensed firms nationwide, but their operations could inflict huge damage on Thai tourism, with most of the income flowing overseas instead of benefiting local businesses.
The department previously revoked the licences of 10 tour companies for being nominee businesses, while 30 companies were investigated, said Mr Jaturon.
He said those convicted were mostly large operators who hired illegal foreign tour guides.
They are now being investigated further, digging into their sales and transaction records to see how they utilise networks and price-dumping strategies.
In addition, the department aims to complete its examination of all suspected companies by the end of this year.
Mr Jaturon said some of them have not registered for a tour licence or are not operating via nominees anymore, but rather pretend to be an overseas direct-selling and multi-level marketing company that holds meetings and incentive trips to Thailand.
For instance, they would offer a cheap membership fee to Chinese tourists, with a free four-day trip.
During the business trips, these companies would take members to visit fixed shopping sites under their networks, forcing tourists to buy products and souvenirs in those places.
Illegal companies would also earn profits via commission fees from venues.
Mr Jaturon said these actions are equivalent to selling illegal tour packages without a tour licence.
A special joint operational centre was recently set up, gathering six governmental agencies to crack down on illegal tour businesses.
Mr Jaturon said there have been constant complaints to the centre, although some cases were false accusations.
Adith Chairattananon, honorary secretary-general of the Association of Thai Travel Agents, said the emergence of these illegal tours has affected licensed inbound tour operators as they have lost a significant market share to those cheap packages.
He said this issue is also harmful for the government’s 3.5-trillion-baht tourism revenue target, due to low package prices and financial circulation that would largely flow out to foreign networks.
Mr Adith said the government should take legal action against suspects, enabling the local economy to reap the most benefits from the visa-free scheme for 93 countries that will start this month.
