Thailand has imposed restrictions on all travelers heading into Cambodia, including foreign tourists flying into Siem Reap, due to a bitter border dispute between the two countries.
The military announced that the new restrictions “matched the current security situation” after armed clashes along the border in May left one Cambodian soldier dead.
Since then, both countries have imposed punitive measures on each other, with Cambodia banning imports from Thailand, including fruit and vegetables, electricity, and internet, as well as Thai dramas and films.
The Thai government has also vowed to crack down on scam operations in Cambodia, with measures including suspending internet services used by Cambodian security agencies.
Thai Prime Minister Paetongtarn Shinawatra stated that foreign tourists would be banned from taking flights from Thailand to Siem Reap. “The criminal networks in Myanmar have resettled in Cambodia, so we need tighter measures to prevent Thais being scammed in the future,” she said.
The border dispute has had a significant impact on the Cambodian economy, particularly in the casino and hotel industry in Poipet.
According to a report, hotel occupancy rates in Poipet dropped sharply by 42% after Thailand’s announcement, with the number of daily casino staff decreasing by 62%.
Donaco International Limited, the operator of the Star Vegas casino, warned that the continued drop in hotel occupancy and loss of casino patrons could affect the company’s overall revenue for June.
Kriengkrai Thiennukul, Chairman of the Federation of Thai Industries (FTI), believes Cambodia stands to lose the most in the border dispute, particularly due to the absence of high-spending Thai tourists who regularly visit casinos along the eastern border.
“These tourists are wealthy, and many go to gamble,” he noted. “Now, that revenue is gone.” The FTI also warned that the return of over 1 million Cambodian workers from Thailand could trigger fresh problems for Cambodia, as the country’s domestic economy is weak and unlikely to offer enough jobs for returnees.
Despite the tensions, both countries have expressed their intention to resolve the border dispute through negotiations.
However, a joint meeting on June 14 failed to conclude, leaving the situation still sensitive and having a clear negative impact on the local economy.
The FTI is urging both governments to find a diplomatic solution quickly, restoring normalcy and preventing long-term fallout. “As a private sector voice, we hope security officials on both sides can calm the tension,” said Kriengkrai Thiennukul. “We want to see relations return to normal soon”.