BANGKOK — Thailand’s tourism industry is bracing for economic fallout as renewed fighting with Cambodia disrupts the country’s crucial high season, with businesses warning of mounting losses and foreign governments issuing travel alerts.
The border conflict has forced the closure of key trade checkpoints and prompted evacuation of residents in frontier districts, raising concerns about both immediate tourism revenue and longer-term investment confidence.
Prime Minister Anutin Charnvirakul has rejected negotiations with Cambodia, drawing praise from nationalist groups but alarm from the business community as the violence escalates during what should be the industry’s most profitable period.
“The flooding and the clashes are happening during the high season, which may affect tourists’ decisions to travel to Thailand,” said Dr. Phiphat Luengnaruemitchai, chief economist at Kiatnakin Phatra Financial Group.
Cambodia accounts for 2-3% of Thailand’s total exports, with roughly 70% moving through land borders now shuttered by the conflict. The Kasikorn Research Center estimates the fighting could reduce GDP by 0.4% if it extends into 2026.
Border provinces face the most severe impact. In Trat Province, where three popular resort islands had reached 90% occupancy for December, operators report foreign tourists questioning their safety after the United States issued a travel alert for areas within 50 kilometers of the border.
“We have to wait until around December 20 to gauge the real impact on cancellations,” said Saksit Mungkarn, adviser to the Trat Tourism Industry Council. The Tourism Authority of Thailand projected December revenue of 4.89 billion baht ($140 million) for the province’s islands alone.
The northeastern border region faces additional strain as small businesses that stocked inventory for New Year celebrations now worry about losses if fighting continues, according to Somchat Pongkapanakrai, chairman of the Northeastern Chamber of Commerce.
Relief measures proposed for the seven border provinces, including tax reductions and tourism stimulus, remain unimplemented after stalling during Thailand’s recent government transition and flooding crisis.
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