Tourism police have arrested owners of two of the so-called zero-dollar tour companies on charges of fraudulent registration and illegal association.
Foo An Co Ltd and Xinyuan Co Ltd were reportedly registered in Thailand using Thai nominees, government spokesman Sansern Kaewkamnerd said on Saturday.
They are allegedly zero-dollar tour operators which brought back all revenue to China without paying tax. If found guilty, their owners could face asset seizures as the offences fall under a money-laundering category, he added.
Zero-dollar tour or kickback tour involves packages priced below cost to lure budget travellers, subsidised through deals with third-party firms which in turn sell overcharged goods and services to the tourists.
Maj Gen Sansern said investigations also implicated OA Transport Co Ltd, a Thai company with more than 3,000 coaches for hire.
The network included companies selling jewellery, leather products, food and food supplements, as well as restaurants.
The Chinese-owned companies brought Chinese tourists to Thailand and they were taken on tours using the coaches provided by the Thai company. During the visits, the tourists were taken to shops in the same network, which charged them 35% higher than normal prices.
"The money involved was several billion baht and no tax was paid for the transactions," the general said.
Two of the OA Transport board members were taken into custody on charges of illegal association and damaging the tourism industry.
Authorities also searched the company, as well as Bangkok Handicraft Co, Royal Paradise Co, Royal Gems International Co and Royal Thai Herbs Co and seized several items as evidence, Maj Gen Sansern said
Authorities are also cracking down on other networks of companies operating similar services and people are urged to report them through the help centre at Government House.