Zero-dollar tours have returned to Thailand along with Chinese tourists. The government is cracking down on travel agencies offering cheap tours.
Thailand’s Ministry of Tourism and Sports has investigated illegal travel companies offering cheap tours and forced 10 of them to close. Travel officials said these grey-market companies already account for 50 per cent of Chinese tour groups in Thailand.
Tourism and Sports Minister Sermsak Pongpanit told the media that the ministry had instructed the Department of Tourism, which has direct authority to regulate travel companies in Thailand, to immediately take strict measures against these illegal businesses, especially those that undercut prices and damage the country’s reputation.
The minister’s order came in response to a call by the Association of Thai Travel Agencies, which has expressed concern over the return of ultra-cheap travel packages to the country. Such tour packages promise low prices to buyers and then, once in Thailand, force tourists to shop and spend money at inflated prices.
Tourism Department director-general Jaturon Phakdeuwanit said that to tackle the problem; six government agencies have set up a joint operations centre over the past six months to crack down on travel agencies using nominee owners and offering tour packages at low prices.
These agencies include the Department of Tourism, Office of the Permanent Secretary for Tourism, Department of Business Development, Department of Special Investigation, Tourist Police Bureau, and Immigration Bureau.
After investigating 30 travel companies, the Department of Tourism revoked the licences of 10 companies, forcing them to close down.
Thai nationals, found to be nominal owners, were banned from the tourism business for five years. They are subject to penalties under the Foreign Business Act, which provides imprisonment for Thais and foreigners.
The Centre has expanded its investigation and prosecuted ten foreigners for illegally working as tour guides in these ten companies, as this profession is only for Thais.
Jaturon said the Tourism Department has more than ten more suspicious companies to investigate. Tourists and business operators are urged to report suspicious cases to the department at 02-141-3264 or 02-141-3119.
Surawat Akaravoramat, vice president of the Tourism Council of Thailand, said tour operators have been using price-dumping strategies since last year but have yet to receive much attention from the government.
Surawat said licensed tour companies attract few customers from holiday groups, so they have switched to corporate travel. The ten companies charged by the Department of Tourism are not the originators of these distorted business practices.
So, if the Thai government wants to punish the big players, the same firms and individuals that ran “zero dollar” tours a decade ago, it may have to cooperate with Beijing.
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