BANGKOK — Thailand's vital tourism sector, a cornerstone of the national economy, is facing a severe downturn as a result of escalating border tensions with neighboring Cambodia. The conflict, which saw its most violent clashes in over a decade this past July, has triggered mass cancellations and a significant drop in visitor numbers, particularly in the eastern and northeastern provinces bordering Cambodia.

According to Sorawong Thienthong, the Minister of Tourism and Sports, the ongoing dispute is costing the country approximately 3 billion baht (roughly $92.6 million) per month. Localized skirmishes and the threat of further violence have led to widespread fear among tourists, with hotel bookings in the seven affected provinces of Sa Kaeo, Trat, Chanthaburi, Ubon Ratchathani, Surin, Buriram, and Sisaket being hit the hardest.

The impact has been particularly acute in areas directly adjacent to the border. Reports indicate that hotel and tour group reservations in Aranyaprathet, a district in Sa Kaeo province that borders Cambodia's Poipet, have been cancelled or postponed by as much as 100%. The once-bustling border checkpoints, popular with casino-goers and cross-border traders, now remain closed or operate under strict controls, a stark contrast to their usual activity.

The ripple effect has also spread to Thailand’s renowned island destinations. Famous resort islands like Ko Chang, Ko Mak, and Ko Kood in Trat province have seen a substantial decline in visitors. Cancellations and postponements on these islands range from 30% to a staggering 60%, a devastating blow for a region that relies heavily on tourist income. Travel advisories issued by various countries have further dampened confidence, prompting many international tour operators to reroute or cancel their packages to avoid the affected areas.

The current situation is a major setback for Thailand's tourism industry, which had been on a strong path to recovery after the COVID-19 pandemic. While the country welcomed over 35 million visitors last year, the first half of 2025 saw a 6.6% decrease in foreign tourists compared to the previous year, a trend that is expected to worsen as the border conflict persists.

The border clashes, rooted in a long-standing territorial dispute, intensified in late May after a fatal skirmish that left a Cambodian soldier dead. This initial confrontation escalated into a full-scale armed conflict in July, with reports of artillery shelling and rocket fire that resulted in dozens of deaths and the displacement of over 260,000 people on both sides of the border. Although a ceasefire was brokered by Malaysia and supported by the U.S. and China, tensions remain high, with both sides accusing the other of ceasefire violations. The border closures and economic fallout have also had a profound effect on the hundreds of thousands of Cambodian migrant workers who have been forced to return home, leaving many families without a source of income.

While major tourist hubs like Bangkok and Chiang Mai remain unaffected and are deemed safe for travel, the ongoing unrest near the border regions continues to threaten the industry's recovery and the livelihoods of those who depend on it. Business owners and local governments are now desperately calling for government support and a resolution to the conflict, fearing that a prolonged crisis could lead to the collapse of their businesses as the crucial high season approaches.