Local economies reel as cross-border trade sinks; Commerce Ministry scrambles for solutions. (Photo by Jetsada Homklin) PATTAYA, Thailand – As Thailand’s Commerce Ministry warns that the extended closure of Thai-Cambodian border passes could wipe out 60 billion baht in trade and severely impact tourism, serious questions are being raised: Is the shutdown necessary, and at what cost? Meanwhile, Pattaya’s tourism sector is also feeling the heat as labor shortages begin to bite. With the Thai-Cambodian border closed, many local hotels, restaurants, and catering services report difficulty finding staff for essential roles. Cambodian workers — who have long formed the backbone of Pattaya’s hospitality and service industries — are now absent, forcing businesses to reduce services, shorten operating hours, or offer higher wages to attract replacements. Employers warn that if the situation drags on, it could severely disrupt operations during the upcoming high season. The impact goes beyond just lost revenue; many of these roles require skills and a work ethic that not every Thai worker is willing or able to provide, making the labor shortage even more challenging to overcome. According to Mrs. Arada Fuangthong, Director-General of the Department of Foreign Trade at the Ministry of Commerce, Thailand’s border trade with Cambodia grew by 11.2% in the first five months of 2025, reaching 80.7 billion baht. Thai exports contributed over 63 billion baht, while imports from Cambodia rose 20%. However, Mrs. Arada cautioned that June’s figures are expected to drop sharply, following the June 7 closure of all border crossings to people, goods, and tourists. Mrs. Arada Fuangthong, Director-General of the Department of Foreign Trade warns border closure could erase 60 billion baht in Thai exports to Cambodia. If the border remains closed until the end of the year, she warned, Thailand may lose over 60 billion baht in border export value during the second half of 2025. That would drag down total annual border trade growth to just 1.8–2%, far short of the original 3% target. “The closure will not completely derail cross-border trade with Cambodia,” she noted, citing alternative export channels like maritime shipping. Still, the hit to border regions will be severe. Shop closures, plummeting foot traffic, and lost tourism income are already affecting small merchants across key provinces. Among the most vulnerable are businesses that rely on Cambodian foot traffic — such as fruit vendors, small retailers, and border market operators. Although the Ministry is helping reroute supply chains and urging domestic consumption of perishable goods like fruits and vegetables, many say it’s not enough. Mrs. Arada acknowledged that while tapioca imports from Cambodia could be redirected to Laos (which already accounts for 60% of such imports), the economic gap left by a stalled Cambodian border will not be easily filled. She emphasized that her department is monitoring the situation daily and coordinating with customs officials and provincial trade offices to mitigate the fallout. “You can’t grow the economy with the gate shut”: experts warn against long border lockdown. Yet many in the private sector say the damage is already done. “You can’t grow the border economy with the gate shut,” one analyst said. “If safety is the concern, then manage it better — but don’t throw away half a year’s trade and tourism.” As policymakers weigh national security alongside economic health, Mrs. Arada’s team is also exploring new trade zones, digital commerce solutions, and partnerships with malls and private spaces to accommodate displaced vendors — a temporary fix at best. Ultimately, businesses on both sides of the Thai-Cambodian border are urging a more balanced approach — one that protects public welfare without sacrificing the livelihoods of thousands who rely on cross-border movement for survival.