Tourism operators in Chiang Mai are calling for the revision of laws and regulations to maintain fair competition and protect local businesses from Chinese merchants using Thai nominees.

Punlop Saejew, president of the Tourism Council of Chiang Mai, said local business operators face stiff (competition)competition with some enterprises suspected of acting as nominees for foreigners.

Mr Punlop said this problem is hard to tackle as these suspected enterprises are often legally registered, with 51% Thai ownership, even though in practice the whole investment has been allocated by foreign investors.

He said without laws that regulate foreign businesses and nominees during registration, the business environment in Thailand would be perceived as unfavourable, particularly with crackdowns against only a few cases in the public spotlight.

He urged the government to discuss the issue, calling for a law that allows 100% foreign shareholders for small- and medium-sized businesses in the tourism sector.

Strictly enforcing regulations, such as setting a fixed tax rate or mandating local employment, with regular inspections to prove transparency, will help create fair competition between locals and foreign businesses, not only in Chiang Mai, but also in other cities that face a similar problem, said Mr Punlop.