Thailand Confronts Escalating Concerns Over Israeli Tourist Behavior and the Expanding Dominance of Foreign Businesses on Koh Phangan

Published on October 11, 2025

Image generated with Ai

Thailand has heightened anxiety regarding Koh Phangan, particularly regarding the behavior of certain visitors from Israel, as well as the encroachment of foreign-owned businesses. The sharp increase in the number of Israeli tourists, coupled with some acquiring land through Thai nominees and businesses that cater specifically to this clientele, is amplifying the conflict with locals. Changing Phangan’s tourist demographic is concerning for residents and local entrepreneurs due to growing disparities in wealth, fears of social division, and threats to cultural and social cohesion, and this has prompted local authorities to intervene.

Koh Phangan one of the most popular island destinations located in the Surat Thani province of Thailand, has been in the spotlight for the behavior of some Israeli tourists and the growing number of foreign-operated businesses in the island – the island has been growing for the wrong reasons – Koh Phangan has been widely known for its exquisite beaches, vibrant nightlife and has been an island recognized for its tourism growth.

The island has been expanding with tourism for the wrong reasons and posing challenges to local residents and local entrepreneurs. Local authorities and foreign residents of Koh Phangan are in jeopardy and at an all-time high focus regarding the rapid growth of foreign-operated enterprises that are predominantly serving people of one nationality. Reports of some Israeli tourists behaving disruptively and foreign business owners claiming land and setting up businesses that cater primarily to Israeli tourists, has been escalating and in the foreign business owners side of the land.

Tourism Surge: Opportunities and Strains on Koh Phangan

Koh Phangan has witnessed a tourism boom over the past two years, with growth in visitor numbers exceeding 200%. This surge has placed considerable strain on the island’s infrastructure and local authorities, who are struggling to keep up with the increasing demand for accommodation, restaurants, and tourism-related services.

According to recent figures from the Surat Thani Immigration Division, there are currently 4,030 Israeli nationals in the province. Of this number, 2,548 are on Koh Phangan, while 1,279 are on nearby Koh Samui. The figures show a mix of long-term residents and short-term visitors, with many of the long-term residents involved in the ownership and operation of businesses on both islands.

This influx of Israeli nationals has led to the rise of businesses targeting Israeli tourists, with some establishments—ranging from restaurants and villas to tour companies—exclusively serving the needs of this particular group. Additionally, a communal center, or Chabad, has been set up on Koh Phangan to accommodate religious and social activities for Israeli visitors, further intensifying concerns about the island’s shifting social and economic dynamics.

Allegations of Land Acquisition and Business Practices

One of the most significant issues raised by local sources is the allegation that some Israeli nationals are acquiring land on Koh Phangan through Thai nominees, a practice that is prohibited under Thai law. Thai law restricts foreign nationals from owning land outright, but it is not uncommon for foreigners to establish legal agreements with Thai citizens in a practice known as “nominee” ownership.

Reports have emerged suggesting that this practice is becoming more widespread on Koh Phangan, with some Israeli nationals allegedly bypassing legal restrictions through these arrangements. This has raised concerns among local authorities, who fear that such practices could lead to a loss of control over the island’s land and resources.

Moreover, the growing number of businesses on the island run by foreign nationals, particularly those catering exclusively to Israeli tourists, is fueling tensions. Many local operators express frustration that these businesses are not contributing to the broader community or benefiting the local economy as a whole. The rise of foreign-run businesses dedicated to a single nationality has created a sense of exclusion for other visitors and has led to complaints about unfair competition.

Behavioral Concerns Among Israeli Tourists

Aside from the issues surrounding foreign-owned businesses, there have also been reports of troubling behavior by some Israeli tourists on Koh Phangan. Local business owners and residents have raised concerns about noise disturbances, disruptive actions, and general disrespect for local customs and practices. These reports mirror similar issues earlier this year in Pai, a well-known tourist town in northern Thailand, where tensions between Israeli tourists and locals also came to a head.

In response to these growing concerns, the Israeli embassy issued a reminder to its citizens about the importance of respecting local laws and customs while traveling in Thailand. At the same time, Thai authorities have been working to improve communication between locals and visitors to prevent further conflicts and misunderstandings.

Narumol Maisopha, president of the Koh Phangan Hotel and Tourism Association, highlighted the frustration felt by local business owners due to the behavior of certain Israeli tourists. According to Ms. Narumol, these actions have resulted in escalating tensions on the island, which is becoming increasingly difficult for local authorities to manage effectively.

Growing Popularity of Koh Phangan and the Strains on Infrastructure

As Koh Phangan’s popularity continues to rise, the island faces mounting challenges in maintaining its infrastructure and public services. With more than 200% growth in tourism over the last two years, the demand for accommodations, restaurants, and other services has far outpaced the ability of local authorities to manage effectively. While tourism brings in much-needed revenue, the rapid development is putting pressure on the local community and ecosystem.

Local authorities have expressed concern that the island’s infrastructure, including roads, waste management systems, and healthcare services, is struggling to keep up with the growing number of tourists. These issues have been exacerbated by the influx of foreign nationals who often have different needs and expectations than local visitors, leading to tensions between the two groups.

Impact on Local Economy and Social Dynamics

The shift toward foreign-run businesses on Koh Phangan has raised questions about the long-term impact on the island’s local economy. While these businesses may be contributing to the economy in the short term, there are concerns that the concentration of foreign ownership could eventually overshadow local businesses, leaving Thai nationals with fewer opportunities to thrive in the tourism industry.

The rise of businesses catering exclusively to Israeli tourists has also led to a shift in the social dynamics of the island. Many locals are worried that the increasing presence of foreign nationals could lead to the erosion of Koh Phangan’s unique cultural identity. The creation of enclaves or communities that cater solely to Israeli visitors, complete with their own businesses and social centers, could lead to a sense of division between different groups on the island.

Moving Forward: Balancing Growth and Local Interests

As Koh Phangan continues to attract a growing number of international visitors, local authorities and business owners will need to find a way to balance the benefits of tourism with the need to protect the interests of the local population. Effective management of tourism growth, alongside efforts to ensure that foreign nationals respect local laws and customs, will be crucial in maintaining harmony on the island.

Local authorities have already begun taking steps to address these concerns, including increased monitoring of land ownership and business practices on the island. Additionally, efforts are being made to engage with foreign nationals, including Israeli tourists and business owners, to encourage responsible tourism and to foster greater understanding between visitors and the local community.

The situation on Koh Phangan is a reflection of broader issues facing many popular tourist destinations in Thailand, where rapid tourism growth has created both opportunities and challenges. As the island navigates these complex dynamics, it will be important for all stakeholders—local authorities, business operators, and tourists alike—to work together to ensure that Koh Phangan remains a vibrant and welcoming destination for visitors from all over the world.

Koh Phangan has benefits and challenges. Increased residents’ and Business owners’ tensions with some tourists arise, especially Israelis. Conflicts with local governments regarding land and business operations by foreigners, as well as some tourists’ social behavior, create complex issues.

Thailand is faced with mounting concerns on Koh Phangan due to the disruptive conduct of certain Israeli tourists and the growing prominence of foreign-owned enterprises on the island. With the rise in Israeli visitors, reports of land purchases through Thai nominees and enterprises exclusively servicing this clientele have sparked concern over possible socio-economic disproportion, compelling local administrators to attend to these pressing issues.

Koh Phangan can only maintain its positive standing and reputation if interventions are made for its social and economic rapid escalations. Prioritizing local sentiment and engagement will be vital for the desired cooperation between guests and residents. Here, the desired goal will be social and economic escalations that continue developing the island.