Impact of Border Tensions on Tourism in Thailand
The recent tensions between Thailand and Cambodia have begun to affect foreign forward bookings in the country, as reported by the Tourism Authority of Thailand (TAT). This situation has particularly impacted tourism operators in Chanthaburi, who have experienced cancellations from international tourists for the remainder of the year. The ongoing disputes along the border have created uncertainty, leading to a decline in tourist confidence and activity.
Tourism operators are calling on the government to implement relief measures for businesses affected in the seven border provinces. These include tax reductions and other financial support mechanisms aimed at helping local enterprises cope with the downturn. While the border dispute has seen some easing following a meeting of the Thai-Cambodian General Border Committee in Malaysia, the overall outlook for tourism in these regions remains uncertain.
According to TAT governor Thapanee Kiatphaibool, data from ForwardKeys, an air traffic data company, indicates that forward bookings for flights in August have slowed due to the border skirmishes. As of July 29, bookings for August were down 2.7% year-on-year from 675,551 bookings during the corresponding period in 2024. Before the border clashes on July 21, bookings for August had shown a slight increase of 0.4% to 564,281.
Domestic Tourism and Government Schemes
On the domestic tourism front, the 300,000 privileges for major tourism cities under the co-payment scheme have been fully redeemed. For the overall scheme, 406,326 out of the 500,000 total privileges have been booked, with 93,570 remaining for second-tier provinces. This shows a strong engagement from domestic travelers, but the impact of the border tensions is still being felt across the region.
Poompat Tangcharoensiri, president of the Chanthaburi Tourism Association, highlighted that European tourists planning to visit the province from September to December have already canceled their plans. Despite the fact that prime beach destinations and the city district are located 60-70 kilometers and 40 kilometers from the border respectively, tourists remain concerned about their safety. Locals, however, continue with their daily lives as usual.
Mr. Poompat noted that the best-case scenario for Chanthaburi is an average occupancy rate of 40% in August, particularly for hotels near the beach. However, most hotels are expected to see only 20-30% occupancy for the month. He also mentioned that while Mother’s Day bookings may pick up, they could severely drop after the holiday.
Calls for Government Action and Relief Measures
"The government and the province have failed to effectively publicise the practices that locals and tourists can follow in Chanthaburi during martial law," said Mr. Poompat. In response, the Chanthaburi Tourism Association, the Tourism Council of Chanthaburi, and the TAT's Chanthaburi office held a meeting to discuss ways to stimulate tourism and support operators in the province.
They proposed relief measures such as annual tax reductions for employees and tourism operators in Chanthaburi and six other border provinces. These proposals will be submitted to the provincial joint public-private consultative committee later this month.
Chatchaipat Sararam, president of the Tourism Council of Buri Ram, reported that tourists have avoided the province, resulting in only 10% occupancy. Hotels in the Muang district are still open and receiving some locals who evacuated from risk areas near the border. To manage costs, hotels are offering heavy room discounts and reducing staff working hours.
Mr. Chatchaipat added that guest numbers should increase next week if locals return home for the Mother’s Day holiday. The province is also holding events to boost tourism and spending. The border dispute has also affected sports tourism in Buri Ram, as sports fans have delayed their plans to visit the province.
He urged the government to lift domestic travel through tax incentives for visiting or holding meetings in the border provinces. This would help revive the tourism sector and provide much-needed support to local businesses.