A French national was arrested after tourist police raided a Chiang Mai hostel allegedly operating without a licence for more than five years, with investigators also suspecting that a Thai shareholder was being used to conceal foreign ownership.
The raid took place yesterday, October 8, at a hostel, a riverside property in Wat Ket, Mueang Chiang Mai district. Officers obtained a search warrant after receiving information about possible licensing violations and a suspected nominee business arrangement.
Police said the hostel had been advertising daily accommodation through social media and online booking platforms, primarily targeting foreign tourists.
During the inspection, officers found a two-storey building containing 12 guest rooms and 27 beds, along with four riverside huts overlooking the Ping River.
Several foreign tourists were staying at the property, including more than 10 guests on the upper floor. Online booking records reportedly showed beds being offered for approximately 120 to 140 baht per night.
A 42 year old Thai caretaker, identified as Matika, reportedly told police that the accommodation had been operating for more than five years.
She subsequently contacted the alleged operator, a 51 year old Frenchman identified only as Julien, who arrived at the premises.
The French national held a Destination Thailand Visa (DTV). Company registration documents showed a Thai shareholder holding 51% of the business, while Julien reportedly held 49%.
According to police, Julien admitted that he had independently managed the Chiang Mai hostel throughout its five years of operation, taking responsibility for its profits and losses.
He allegedly told investigators that the Thai shareholder’s name had been used to meet company ownership requirements, despite her having no involvement in running the business.
The Frenchman reportedly said the woman had never received dividends and that they had met only once.
Officers seized guest registration records, online booking receipts, business cards and company registration documents as evidence.
Julien was charged with operating a hotel or accommodation business without the required licence and transferred to Mae Ping Police Station for further legal proceedings.
Police said they would expand the investigation into possible violations of the Foreign Business Act 1999 involving the suspected nominee arrangement.
In similar news:
- Massive Chiang Mai raids target 18 sites linked to nominee network
- Thai woman and 2 Chinese men arrested over nominee hotel in Chiang Mai
- Government warns Thais: Nominee roles risk jail time
The story Frenchman arrested over unlicensed Chiang Mai hostel as seen on Thaiger News.
