Tuktuk scams happen in Chiang Mai, though not as widespread as in Bangkok. I have been approached several times by tuktuk drivers, especially when walking in the night market or Thapae gate area during the day. What the driver offers is a visit to a small local market with craftsmen, outside the city centre. A few years ago, I had an afternoon to kill, and as the driver said he would take me for free, and also throw in a visit to nice temple further away the centre, I agreed to go, suspicious about the free ride, but not really knowing what sort of trick to expect. 

The "local market" turned out to be the local crafts workshops and showrooms just outside the Ringroad, on the road to Sankhamphaeng. The small villages around Chiang Mai are famous for various traditional crafts like saa-paper umbrella making, woodcarving, lacquerware, and there are authentic experiences to be found, but not necessarily if you go for a tuktuk ride. We ended up visiting five or six workshop&shop complexes, including a silk factory, a lacquerware factory, a silver and jewellery workshop, and a Persian carpet factory - though interesting and absolutely amazing, I didn't really understand why I should buy a Persian rug on a visit to Thailand.

These places are actually nice to visit if you are interested in seeing how these things are made, as there is usually a guided tour, the procedures are shown, at one place there was an interesting video about gem mining in Myanmar, staff is nice, I don't remember being pressured to buy, and as far as I saw and were able to compare, the prices were not outrageous. It was eventually an interesting way to spend about two hours. But, obviously, if you really think you are going to see a nice traditional market, the air-conditioned posh shops won't necessarily please you, so, it's a genuine scam. In the end, I didn't buy anything, the tuktuk driver didn't make me pay, and he actually did take me to the temple as well and we had a nice chat. Not a horrible experience on the whole, not at all. Maybe I was lucky. 

I have been approached recently, of course only when dressed quite neatly (not as a rundown backpacker, but not visibly an expat working here),  so the scam still seems to be up and running.

I hope others reading this can avoid having a disappointing ride, especially if staying on a tight schedule. 

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