Chinnawat Udomniyom, President of the Phuket Boutique Accommodation Consortium, said the poor corruption score was a mirror of tourism concerns in Phuket, such as bribery and a lack of law enforcement against criminals.

He said robust tourism in Phuket had attracted many businesses, including some that violate the law.

Common cases include entertainment venues opening late during restricted hours, foreigners working without permits as tour guides, drivers or sex workers, or operating businesses illegally using nominees.

These instances open loopholes for authorities to collect bribes from violators, allowing them to keep operating, said Chinnawat.

The government must address these problems more seriously through a dedicated working committee, he said.

New incentives and increased penalties should be developed that encourage compliance, which could reduce opportunities for officers to collect bribes, said Chinnawat.

Sanga Ruangwattanakul, President of the Khao San Road Business Association, said bribery is common in Thai tourist destinations, stemming from inefficient law enforcement structures.

Likewise, the business licensing process should be streamlined into more one-stop services to attract operators to register, which would decrease illegal operations, he said.

For instance, operating an entertainment venue requires applying for licenses at many organizations, which discourages some operators, said Sanga.

Bribery stemming from restrictions that should be legalized must be resolved to bring them above ground, while anything that is clearly illegal must be prosecuted according to the law, he said.

Thailand, the second largest economy in Southeast Asia welcomed 5.07 million foreign arrivals between January 1 to February 15, down 7.59% from a year earlier, the Tourism Ministry said on Tuesday.