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Border restrictions extend beyond the gate — Pattaya faces fallout in trade, tourism, and labor
What happens at the border doesn’t stay at the border — Pattaya’s trade, tourism, and labor flow all stand to lose. (Photo by Jetsada Homklin) PATTAYA, Thailand – The economic shockwaves from the sudden tightening of Thai-Cambodian border controls are reverberating far beyond the provincial checkpoints — with consequences now rippling toward coastal cities like Pattaya that rely heavily on logistics, trade, and cross-border labor. At a high-level meeting chaired by Governor Natthapong Sanguanjit on June 26 at Trat Provincial Hall, customs officials revealed stark numbers: the closure of the permanent Haad Lek checkpoint is costing the economy an estimated 80 million baht per day. That’s not just lost local trade — it includes stalled imports critical to Thailand’s wider industrial and tourism supply chains. For instance, pre-assembled electrical wiring kits used in Thai automobile manufacturing remain stuck on the Cambodian side, with potential to disrupt downstream industries if the shutdown drags on. The issue has already prompted concern among border traders, although most reportedly understand the national security-driven context. While Trat’s fruit exports are mostly unaffected due to seasonal timing and alternate routes, the broader commercial fallout is beginning to weigh on other regions — particularly tourism-reliant Pattaya. Though over 300 km away from the border, Pattaya depends on seamless regional logistics and free movement of goods and seasonal workers — many of whom transit through eastern border routes like Trat. The restriction threatens to disrupt supply chains for hotels, restaurants, and construction projects, while raising business costs and delivery delays. Moreover, a prolonged shutdown could aggravate labor shortages in Pattaya, where migrant workers from Cambodia fill essential roles in hospitality, cleaning services, and food production. Business operators say any slowdown in worker flow will directly impact service quality during a time when Pattaya is still rebounding from low-season challenges. Trat’s border closure bleeds 80 million baht daily — and the ripple effects are now lapping at Pattaya’s shores. Authorities in Trat have set up a relief coordination center under the provincial commerce office and are working with SME D Bank to offer financial support for affected businesses. However, no such compensatory mechanism exists yet for downstream destinations like Pattaya that may face secondhand consequences. As the Ministry of Interior’s Border Situation Command prepares its next steps, local leaders are urging a balanced approach — one that doesn’t sacrifice the economic lifeline of communities that may not sit directly on the border but are very much dependent on its flow. Ms. Thapanee Kiatphaibool, Governor of the Tourism Authority of Thailand (TAT), acknowledged that the recent closure of border checkpoints between Thailand and Cambodia has impacted cross-border tourism, particularly from Cambodian visitors. Since the June 7 shutdown, the number of Cambodian tourists entering Thailand has dropped by 43% compared to the previous week. From January to May 2025, Thailand received 197,658 Cambodian visitors—a 14% decrease from the same period last year. While the overall impact on Thai tourism has been minimal, Ms. Thapanee noted that specific destinations such as the Phu Prasat ruins in Ubon Ratchathani—located near the Thai-Cambodian border—have seen reduced domestic travel due to safety concerns. She added that Sa Kaeo province has also experienced a slight drop in hotel occupancy in Aranyaprathet, a popular transit point for travelers heading into Cambodia. Many of these visitors, including Indonesians who typically stay overnight before crossing the border, have postponed their trips. Despite these declines, Ms. Thapanee emphasized that tourism sentiment is beginning to recover in affected areas, as most travelers from nearby provinces are familiar with the local dynamics. TAT regional offices covering Ubon Ratchathani, Surin, Sa Kaeo, and Trat have not reported the need for any extraordinary security measures at this stage. TAT Governor Thapanee Kiatphaibool confirms Cambodian tourist numbers dropped 43% after border closures, but says recovery is already underway in key provinces.
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