This is the terrifying moment an Australian family cowered in fear after a drug-crazed gunman held them hostage as they ate in a restaurant.

The three tourists, who have not been named yet, were dining out at a beach bar in Krabi, Thailand, when Ekkapoj Puangphet, 32, stormed in brandishing the handgun yesterday (Tue) evening at 7 pm.

Ekkapoj - who was high on alcohol and yaba - ordered the Aussies and three massage workers also eating in the venue to lie face down on the ground as he locked the door.

The shirtless bandit - covered in tattoos and with a red bandana over his face - then let off four rounds on the second floor of the wooden building prompting cries of terror and panic among the hostages and those outside.

Police eventually contacted the gunman's father and passed the mobile phone Ekkapoj him. He was eventually arrested an hour later with 50 armed police on standby outside.

He had a pistol and nine bullets on him.

The gunman told cops he had arrived the previous day from his home in Nakhon Si Thammarat province before going on a drink and drugs binge.

He said he found the restaurant on the popular Railey Beach part of the tourist resort and became paranoid he was about to be harmed.

Poice Lieutenant Colonel Phitsanu Puangprom, commander of the investigation division of the Krabi Police head office, said: ''There were six hostages. Three Australian tourists and three Thai massage workers. They were eating in the restaurant.''