Border dispute hits Thai economy hard-TAT

The Thai-Cambodia tensions are severely affecting tourism in provinces bordering Cambodia, but other provinces in the north and the south are also being affected. Economists have predicted that the current situation will cost almost three billion baht per month.

The border clashes between Thailand and Cambodia have affected Thai tourism, especially in the seven northeastern provinces bordering Cambodia, where many tourists have cancelled or postponed their trips.

The Tourism Authority of Thailand has revealed that most tourists have cancelled their hotel bookings following the border clashes last week, particularly in Ubon Ratchathani, Sa Kaew and Si Sa Ket provinces. Many tour groups have also cancelled. The only customers using these hotels now are journalists and volunteers travelling to donate necessities for those affected.

In Surin, Chanthaburi and Buri Ram provinces, 70-80% of the hotel bookings have been cancelled, while racing events in both Surin and Buri Ram have been postponed.

In Trat province, most hotel bookings, especially near the Cambodia border, have been cancelled or postponed, while boat trips to nearby islands, such as Chang and Kood islands, have been put on hold.

TAT Governor Thapanee Kiatphaibool told reporters that it will assist travellers and tourism businesses affected by the border clashes and that the TAT has developed campaigns and activities to boost tourism during the second half of this year.

Meanwhile, the Thai Hotels Association has found that over 5,966 hotel rooms in 24 hotels in Bangkok, Chiang Mai, Chonburi, Phuket, Nakhon Ratchasima, Phang-nga, Surat Thani, Rayong and Nong Khai have been cancelled since the border clashes erupted on July 24. Most of the cancellations were by Thai tourists, followed by those from Asian countries, many of which have issued travel advisories urging their citizens to avoid travel.

The President of the Phuket Tourist Association, Thaneth Tantipiriyakij, revealed that, in Phuket alone, at least 500 hotel bookings have been cancelled so far, but there are still new hotel bookings coming in. He admitted, though, that there have been several incidents in Thailand this year that have affected tourism, causing much concern among tourists.

Thaneth advised that the government should place greater importance on clear communication with tourists, especially regarding whether the situation is under control and whether popular tourist destinations are affected.

According to the Krungthai COMPASS Research Centre, the Thai-Cambodian border clashes will negatively affect Thailand's tourism sector by about 2.97 billion baht per month.