Frenchman arrested for 'running unlicensed hostel with Thai nominee shareholders' in popular tourist spot
A Frenchman was arrested for allegedly running an unlicensed hostel in a popular tourist spot using Thai nominee shareholders.
Julien Guionnet, 51, allegedly ran Mapping Hostel in Chiang Mai, northern Thailand, for more than five years without a hotel license.
He was said to have listed a Thai woman and his Thai wife as shareholders to comply with local law, despite the Thai shareholders having no actual stake in the company.
Police raided the riverside property on October 8, in a crackdown on nominee businesses in Thailand.
They found that the establishment was operating normally before meeting Matika Chuensaen, 42, who introduced herself as the manager.
Matika said the hostel had been operating for more than five years and that most of its customers were foreigners.
The first floor of the building had a reception desk alongside nine guest rooms containing a total of 14 beds. There were four huts at the back, located next to the Ping River.
On the second floor, officers found three more rooms with 13 beds, where guests could stay at a rate of around four euros per bed per night.
The manager later contacted the French owner, who was later found to have entered the country on a Destination Thailand Visa due to expire in 2027. He was able to communicate in Thai.
Officers checked the hostel's corporate registration certificate and found that a Thai woman Wassakarn, held a 51 per cent stake, while Guionnet held 48 per cent.
He allegedly confessed that he had been the sole operator and manager, receiving all profits and bearing all losses for more than five years without a legal permit to operate a hotel or lodging facility.
He said that he had included Wassakarn and his wife, Xuexian, in the company registration merely to comply with Thai legal requirements on shareholding ratios.
He added that Wassakarn had no financial stake, had never received any dividends or profits, and had met him only once.
Police seized a check-in book and payment logbook and copies of the contents, three online booking receipts from a hotel reservation platform, two business cards, a copy of the corporate registration certificate, and a copy of the list of shareholders.
Police Major General Olan Iamprapas, commander of Tourist Police Division 2, said: ‘We charged him with operating a hotel or non-hotel accommodation business without a permit from the registrar.
‘We handed him over to the inquiry officer at Mae Ping Police Station for legal proceedings, including a request for an expanded investigation into offences under the Foreign Business Act involving all parties concerned.'
