Tourism officials reaffirm that major tourist hubs, including Pattaya, remain safe and accessible, while efforts continue to restore traveler confidence and stabilize arrivals. (Photo by Jetsada Homklin) PATTAYA, Thailand – The recent military clashes between Thailand and Cambodia along their shared border have triggered widespread repercussions across Thailand’s tourism sector and labor markets, raising concerns among industry stakeholders and government officials alike. According to Mr. Sorawong Thienthong, Minister of Tourism and Sports, roughly 8,000 foreign tourists have canceled their travel plans to Thailand since the border skirmishes intensified. Although flight cancellations have not been reported on a large scale, the Minister disclosed that official communications have been sent to embassies and the Tourism Authority of Thailand’s (TAT) international offices, stressing that the conflict zones are geographically isolated and far from Thailand’s main tourist hubs. “Despite reassurances, travel insurance policies from various countries are increasingly excluding coverage in conflict-affected zones, leading to heightened traveler anxiety,” Mr. Sorawong said. Hotels in eastern border provinces, particularly Chanthaburi, have experienced cancellations reaching 20%, reflecting the caution travelers have begun to exercise. “While Bangkok, Pattaya, Hua Hin, Phuket, and Chiang Mai have not been physically affected, the negative international media coverage and travel warnings have led to a slowdown in bookings across the country,” explained Mr. Thianprasit Chaiphatranan, President of the Thai Hotels Association. Pattaya, known internationally for its beaches, vibrant nightlife, and as a favored destination for European and long-stay tourists, is seeing the impact primarily through shifting tourist sentiment rather than direct conflict. Hotel operators and tourism businesses report increased inquiries about safety and insurance, and a hesitation among new tourists to commit to bookings. Industry sources in Pattaya warn that while the city remains far from the conflict zone, “the reputational damage from ongoing border clashes and the resulting travel advisories are causing unease, especially among first-time visitors and families.” In northern Thailand, Chiang Mai, a major cultural and eco-tourism center, has begun to feel the consequences despite being geographically distant from the border conflict. Ms. Warunee Kammeru, President of the Northern Tourism Federation, shared that international group tours and corporate seminar bookings have decreased, particularly affecting the low travel season. “Tour operators are postponing or canceling trips due to concerns over safety and the exclusion of conflict zones from travel insurance coverage. Even though Chiang Mai is far removed from the clashes, international perceptions are affecting traveler decisions,” Ms. Warunee said. High season bookings are currently at 30-35% of previous years’ levels, well below the typical 50% or more, signaling caution among international markets. The conflict is also influencing Thailand’s labor market, particularly in eastern provinces where many Cambodian migrant workers have temporarily returned home. Dr. Thanit Sorat, Vice President of the Thai Employers’ Confederation, noted that approximately 500,000 legal Cambodian workers (about 18% of foreign labor in Thailand) could be affected, though the majority of Cambodian workers are employed in agriculture, fisheries, and construction rather than industry. “The temporary withdrawal of Cambodian workers is creating labor gaps, especially in agriculture during harvest seasons in provinces like Chanthaburi, Trat, and Sa Kaeo. However, the large population of Myanmar migrant workers — approximately 2.9 million — can potentially fill some of these gaps,” Dr. Thanit said. Mr. Cholathai Numnu, a durian farmer in Trat, warned that the labor shortage is particularly acute for fruit harvesting, where Cambodian workers predominate. “If workers do not return, much of the lychee and durian harvest could be lost, threatening hundreds of millions of baht in agricultural output,” he said. The labor shortage also extends to meat processing plants in the Northeast and Eastern regions, where many Cambodian workers occupy roles that require manual dexterity, such as poultry hanging and cutting, which cannot be easily mechanized. Industry insiders revealed that some plants have seen thousands of Cambodian workers resign or take leave, forcing reliance on overtime for remaining staff and accelerating plans to invest in automation technology to mitigate workforce gaps. In response to labor shortages, the Thai Chamber of Commerce’s Northeast committee has proposed recruiting more Laotian workers to temporarily fill gaps in construction and other labor-intensive sectors. Preliminary trials involving work permits and skill assessments are underway, although differences in worker capability and integration remain concerns. On the economic front, discussions between private sector leaders and government officials regarding recent U.S. trade demands for zero tariffs on all American imports have intensified. Thai businesses have urged for phased tariff reductions over 5 to 10 years and import quotas to allow domestic producers, especially in agriculture and livestock, to adjust without collapsing under competition. Despite challenges, the Tourism Authority of Thailand, led by Governor Ms. Thapanee Kiattipiboon, emphasizes that Thailand’s key tourist destinations, including Pattaya, remain safe and accessible. “The conflict is confined to a narrow border area, distant from major tourist centers,” she reassured. “We are closely monitoring the situation and prioritizing visitor safety at all times.” With continued marketing campaigns and planned events, officials remain hopeful that tourist arrivals will recover, although current numbers still trail those of 2024 by around 4%.