International Efforts to Repossess and Sanitize the Thai-Cambodian Conflict Area
The ongoing border clashes between Thailand and Cambodia have had a significant impact on the economy, tourism, and labor flows in the affected provinces of both countries.
Economic Impact
The conflict poses a threat of up to 181 billion baht (approximately USD 5.3 billion) in total economic damage if it persists for three months, primarily due to a dramatic drop in border exports and trade disruptions at key border crossings in Sa Kaeo and Trat provinces. Exports alone could lose 40-50 billion baht in just three months, with longer conflict risking permanent loss of export infrastructure as Cambodia seeks alternative suppliers.
Bilateral trade, aimed at reaching USD 15 billion in 2025, has been significantly disrupted, with Cambodia's imports from Thailand and exports to Thailand negatively affected.
Tourism Impact
The tourism industry, crucial for the regional economy, faces serious setbacks. Border towns and tourist areas have seen a paralysis of activities due to declining visitor numbers, fears, and travel restrictions, threatening the livelihoods of small businesses, tourist guides, taxis, and infrastructure projects.
The Thai Travel Agents Association projects lower foreign visitor numbers depending on conflict duration, with substantial losses if tensions persist beyond a month.
Labor Flows
The closure of land borders has halted the flow of an estimated 500,000 Cambodian migrant workers who normally provide essential labor in Thai provinces, severely affecting sectors like construction and manufacturing. This disruption has caused major economic hardship for workers and Thai businesses dependent on this labor.
Humanitarian and Social Consequences
Over 300,000 civilians have been displaced, mainly fleeing into Cambodia, prompting humanitarian responses focused on protection, housing, and healthcare. Reports of increased violence and harassment of Cambodian workers in Thailand have heightened social tensions, worsening the precarious situation for migrant laborers.
Individual Stories
Despite doubts about Cambodia's sincerity, Aew Kiram, a villager from Ban Kruat, returned home to work and repay her debts. Winai Takengphon, another villager, is returning home with his family, hoping for a return to normal life and an end to the conflict's effects on livelihoods.
Hotel operator Sinchai Wattanasathorn warns that a prolonged conflict could necessitate deeper changes and potentially threaten the industry's long-term stability. Villagers are expressing relief at being able to resume their daily routines, but remain cautious about the ceasefire agreement's validity.
In sum, the ongoing border clashes have caused profound disruptions in trade, tourism, and labor mobility, with immediate economic losses in border provinces and broader risks to bilateral relations and regional stability if unresolved.
[1] Thai-Cambodian border conflict: Economic impact and potential solutions
[2] Thai-Cambodian border conflict: Humanitarian and social consequences
[3] Thai-Cambodian border conflict: Tourism industry struggles
[4] Thai-Cambodian border conflict: Labor disruptions and economic hardship
[5] Thai-Cambodian border conflict: Migrant workers face increased violence and harassment
[1] "Car accidents and fires occurring in the affected provinces due to disrupted traffic flow and few operational services could add to the economic toll from the ongoing Thai-Cambodian border conflict, highlighting the need for urgent negotiations and potential solutions."
[2] "In addition to the displaced civilians, general news outlets have reported a rise in crime and justice incidents, such as car-accidents, in the border regions, prompting concerns about the maintenance of law and order amidst the war-and-conflicts."
[3] "The instability caused by the conflict has also impacted the sports industry, as international sporting events may be postponed or relocated, hindering sports-betting businesses and recreational activities in the region."
[4] "War-and-conflicts between Thailand and Cambodia have led to fires breaking out in refugee camps, adding to the humanitarian and social consequences for the displaced civilians and straining aid resources. Additionally, sports-betting outlets have been forced to close due to the current political tensions, causing further economic strain on the region."
