The warning - perhaps the sternest yet - came from Phuket Vice Governor Somkiet Sangkaosutthirak as the latest chapter in the saga of Phuket's tourist scams and rip-offs developed a fresh twist.
Someone posing as the owner of a yacht hit by a jet-ski had come forward to claim 400,000 baht in compensation, a meeting was told today.
However, the yacht's real owner - a Frenchman - had adequate insurance and did not need extra compensation, the meeting was told.
Vice Governor Somkiet ordered Kathu Council, which oversees Patong beach, to track down the would-be fraudster and make sure he was punished.
More importantly, Vice Governor Somkiet said: ''The Government fears these continuing conflicts are damaging Thailand's good reputation.
''Unless the jet-ski operators can bring a halt to these issues, we will have to stop the use of jet-skis on Phuket.''
Vice Governor Somkiet ordered the representative from Phuket's Marine Office 5 - the Chief of Phuket's Marine Office 5, Phuripat Theerakulpisut, was not at the meeting - to organise a gathering of all jet-ski operators on Phuket.
They will have to consider a more comprehensive insurance scheme and an improved attitude, or alternative careers.
Today's meeting at Phuket Provincial Hall in Phuket City was called to resolve issues raised last week by Chinese Consul Qin Jian.
In an email to tourism and consumer officials on Phuket, the China consul detailed the circumstances involving two jet-ski incidents where operators demanded large sums from holidaying Chinese citizens.
One case, where the initial demand was 90,000 baht, was settled for 45,000 baht.
The other case involving a crash with a yacht, where the jet-ski operator at one stage demanded 250,000 baht, was eventually settled for 105, 000 baht.
An insurance scheme designed to solve disputes offers compensation to 50,000 baht.
A regular source of friction has been the demand by jet-ski operators for larger sums in compensation, and extra money for the time the jet-ski is out of the water, being repaired.
Phuket's honorary consuls have suggested that rates for the insurance scheme should be lifted to cover both the time the jet-ski is out of the water, and all damage, with no financial limit.
The honorary consuls have also suggested that the simplest way of covering the extra insurance cost is to increase the hiring fee.
Phuket's Foreign Ministry representative, Sinporn Tantipanyatep, said that many other nations apart from China continued to complain about the actions of the jet-ski operators.
The jet-ski operators use abusive language and threats, according to the Chinese consul, to attempt to extort as much money from the tourists on Patong beach and to prevent the tourist from going to the local police station for mediation.
Even with police ''mediators'' involved, there have been cases where the officers clearly side with the jet-ski operators.