I despise people like that (assuming you are foreign).
You should report him to the police so it is on record.
It sounds like you can deal with him but he is causing some of your customers to cancel - which is bang out of order.
Unfortunately some people only understand once violence is used on them, but you can't do this without kissing that local work goodbye.
That only leaves the police.
Please, if you are foreign go to the police. Not only for your benefit but for the benefit of all the foreigners who will follow in your path.
I'm gonna feel a bit silly if you aren't foreign.