Koh Yao Noi Villagers Target Expat’s Unlicensed Island Tours

Holidaymakers disembarking on the normally laid-back Koh Yao Noi this week encountered a different kind of buzz: villagers brandishing placards and demanding that a long-time foreign resident pack his bags. Their grievance, they say, is not about xenophobia but about livelihoods they believe are being siphoned away by an outsider who has cleverly skirted Thai business rules for years.

Snapshot

• South African retiree accused of running multiple tourism ventures on a Non-Immigrant O visa.

• Residents claim he uses Thai nominees, advertises tours online and even skippers boats himself.

• Petition delivered to the Ko Yao district chief; agencies now cross-checking land deeds, tax filings and company shares.

• Case highlights broader crackdown on nominee structures across Andaman islands.

Why this quiet island is suddenly restless

Koh Yao Noi, wedged between the blockbuster destinations of Phuket and Krabi, has thrived on its brand of community-run, low-impact tourism. For local guides, boat captains and homestay owners, each high-season brings a modest but reliable cash flow. The arrival of a foreign-owned massage shop, private villa rentals and ready-made day-trip packages upended that balance, islanders say. They argue that when a single retiree can offer cut-price excursions, the village loses not just income but its control over how visitors experience the island.

Allegations spilling out of the petition

In their filing, community representatives listed a series of claims: the foreigner, married to a Thai national, allegedly registered companies under local fronts, bought plots in Thai-only zones, converted houses approved as residences into daily rentals, and personally marketed tours through Facebook. More troubling for the villagers were reports that he name-dropped “powerful friends” when confronted. Residents recount at least two incidents where local skippers were told to "stay out of my waters"— an assertion impossible under Thai maritime law yet intimidating enough to keep some away from lucrative speed-boat charters.

The legal red lines foreigners must heed

Thailand’s Foreign Business Act 1999 puts most tourism services, land trading and passenger transport off-limits unless a foreigner secures a specific licence or operates under the Board of Investment. A Non-Immigrant O visa, popularly dubbed the retirement visa, confers no such privilege. Running a massage parlour, managing a tour company, or captaining a boat for hire while on this visa can trigger charges of unlicensed business activity and illegal employment. Using a Thai “face” to mask control— the so-called nominee offence— carries penalties up to 3 years in jail, fines of ฿100,000–1,000,000, and a daily penalty until the enterprise is shut. The Department of Business Development’s new IBAS risk-scoring platform scans company registers for the tell-tale signs: thinly capitalised Thai shareholders, foreign directors wielding full voting rights and suspicious capital inflows.

Counting the baht: how much is really at stake

Although Koh Yao Noi keeps no formal ledger of tourist receipts, an academic survey in 2024 placed the island’s annual community tourism turnover at ฿280 M. Local entrepreneurs estimate that cut-price tours operated by outsiders shave off 20 % of their potential revenue— money that would ordinarily fund pier upkeep, island-cleaning drives and homestay renovations. When visitors book a foreign-run package, village guides lose commissions, boat owners forgo charters and farmers supplying meals miss out on bulk orders. A senior member of the island’s eco-tourism co-op said, “If cash leaves the island, our mangrove-restoration fund takes the hit first.”

How the state apparatus is moving

The district chief has forwarded the dossier to four agencies: the Immigration Bureau for visa compliance, the Department of Business Development for nominee probes, the Tourist Police for on-the-ground checks and the Land Office for title verifications. Officers have already pulled the suspect’s Tor Mor 3 house register, payment records and company submissions. A regional taskforce, patterned after the national Joint Centre for Nominee Suppression (ศปต.), is expected to arrive before Lunar New Year, when charter traffic peaks. If irregularities are found, licences can be revoked within days and overstaying foreigners placed on the Immigration blacklist.

Echoes along the Andaman coast

Koh Phangan recorded a similar bust last month involving a Russian villa-rental ring. In Patong, Phuket officials shuttered two Korean-front dive shops after surprise inspections. The pattern is consistent: low-key islands build reputations for authenticity, foreign operators slip in on soft visas, revenues flow out, community resentment boils over, and authorities scramble to restore order. Analysts warn that failure to stem the practice risks turning local resentment into open hostility— a scenario that could tarnish Thailand’s carefully managed “Amazing” brand.

What to watch in the weeks ahead

Immigration’s decision on whether the retiree’s visa will be cancelled or merely not renewed.

Possible asset freezes if nominee structures are proven.

The island’s push to draft a community tourism charter, giving cooperatives first rights to boat routes and prime beachfront kiosks.

Whether national agencies expand the IBAS sweep to neighbouring islands like Koh Yao Yai and Phi Phi.

For residents of Thailand pondering their own slice of paradise— or simply curious about who profits from the nation’s scenic wonders— the Koh Yao Noi dispute is a stark reminder: the law is clear, the penalties steep, and communities are increasingly vigilant in protecting their economic turf.