Ceasefire Fails to Reassure Foreign Tourists Amid Thai Border Violence. Thailand’s tourism sector faces turmoil as border clashes with Cambodia continue to escalate. Despite a ceasefire agreement on Sunday, the Royal Thai Army reported further attacks in contested areas as recently as Wednesday, putting the travel plans of foreign tourists at risk. ASEAN NOW

Thai residents who fled homes following the clashes between Thai and Cambodian soldiers rest at an evacuation centre in Surin province, Thailand, Wednesday, July 30, 2025. (AP Photo/Sakchai Lalit)

 

Thailand's tourism sector faces turmoil as border clashes with Cambodia continue to escalate. Despite a ceasefire agreement on Sunday, the Royal Thai Army reported further attacks in contested areas as recently as Wednesday, putting the travel plans of foreign tourists at risk.

 

The Foreign Affairs Ministry confirmed that Thai military positions at Phu Makua were targeted by Cambodian forces using small arms and grenades late Tuesday.

 

The ongoing violence, happening just a day after the ceasefire, highlights the struggle authorities face in maintaining peace.

 

Teerasak Tanavarakul, head of research at CGS International Securities, expressed concerns over the situation. He warned that if fighting does not cease within two weeks, foreign and local tourists might fear for their safety and question the ceasefire's validity.

 

Such an outcome could impact confidence significantly, especially if the General Border Committee meeting scheduled in Cambodia on August 4 does not occur.

 

Maybank Securities, based in Kuala Lumpur, described the current border situation as an "uneasy peace." The neighbouring countries' economic interdependence is notable: Cambodia relies on Thailand for trade, fuel, and tourists, while Thailand benefits from Cambodian labourers, officially numbering half a million but possibly up to 2 million and accounting for nearly 5% of Thailand's workforce.

 

If the ceasefire holds, the conflict's economic impact is expected to subside over the next two months. However, sectors such as tourism, retail, and air transport could feel the strain more acutely.

 

Maybank warns that if the ceasefire fails for the remainder of the year, Thai GDP might shrink by 0.7 percentage points and Cambodian GDP by 2 percentage points in the latter half of 2025.

 

In summary, the situation remains tense as both nations strive for stability. The tourism sector, a vital component of Thailand's economy, anxiously awaits resolution as the implications of prolonged conflict loom large.

 

  Adapted by ASEAN Now from Bangkok Post 2025-07-31