Cambodia Tourism Faces Challenges Due to Border Clashes with Thailand but Future Strategies Focus on Confidence, Expansion and Sustainable Growth

Published on December 24, 2025

The famous temple complex of Angkor in Cambodia has been facing a significant decline in tourist arrivals due to the ongoing border conflict between the Thai and Cambodian governments. The bustling tourist attractions that normally receive millions of visitors from across the globe every year have been experiencing very low visitor traffic, with some tour guides, such as Bun Ratana, registering an 80% decline in earnings last December relative to the previous year been a issue to resolve to revamp growth for Cambodia Tourism Sector.

Despite assurances that Siem Reap is still a safe tourist destination, the recent flare-up of the Thai-Cambodian border conflict, dating back to a colonial dispute, has put off tourist visitors, especially those that travel over the land border. The effects of this development have been immediately felt by the gross receipts of Cambodia’s tourist sector, a major source of the country’s revenue.

The Immediate Effects: Decline in Tourism and Economic Strain

As tourism makes up about 10% of Cambodia’s GDP, the decline in visitor numbers has put significant pressure on local businesses, especially in Siem Reap, home to the world-famous Angkor Wat. The drop in ticket sales to the Angkor temple complex is reported at 17% year-on-year from June to November 2025, exacerbated by the violent border clashes in July that killed dozens. The decline has been so significant that local vendors, like T-shirt seller Run Kea, describe how foreign and local tourists have “disappeared” from the normally busy park. The impact on local livelihoods is immediate, with local businesses losing income, and tourism workers like tuk-tuk drivers and vendors facing drastic reductions in their earnings.

Despite media coverage of the ongoing conflict and the rise of concerns over safety, many tourists who visited Angkor Wat during the clashes still felt safe. Tourists like Dorothy from the U.S. and Kay Florek from Germany reassured others that their visits were not disrupted, emphasizing that the temple complex remained secure. However, fear-driven narratives still dominate media channels, pushing some potential travelers to avoid the region, underscoring the power of perception in shaping tourism behavior.

Future Tourism Impact: Rebuilding Confidence and Diversifying Cambodia’s Tourism Offerings

The future impact of this tourism decline will depend largely on Cambodia’s response to the security situation and the development of new tourism strategies. To fully recover, the tourism sector must address safety concerns while rebuilding international confidence in the region. This includes clarifying the safety of tourist sites, offering more diverse travel experiences, and improving communications regarding regional stability.

Tourism Diversification: Expanding Beyond Traditional Destinations

Looking ahead, Cambodia’s tourism industry will benefit from a shift towards diversification, expanding beyond traditional heritage tourism and temple visits to include eco-tourism, adventure tourism, and cultural experiences that showcase the country’s rich heritage. Developing tourism offerings that align with global trends—such as sustainable travel and authentic cultural experiences—will provide opportunities to attract a broader range of travelers, especially those seeking eco-conscious and culturally immersive travel.

A key future growth opportunity lies in expanding regional tourism by promoting new destinations in Cambodia’s rural areas. The expansion of eco-tourism initiatives in areas like Kep, Kampot, and the Cardamom Mountains will help balance the concentration of tourists in Siem Reap and Phnom Penh, benefiting local communities and contributing to long-term sustainability.

Collaboration for Sustainable Tourism Growth

To maximize the future impact of tourism, collaboration between the government, local tourism operators, and international stakeholders will be essential. Partnerships aimed at promoting responsible tourism and ensuring that local communities benefit from tourism revenue will help foster long-term growth. For instance, the creation of community-based tourism projects and the empowerment of local artisans and cultural guides will provide more economic opportunities for rural communities, while also encouraging cultural preservation.

Moreover, the growth of regional partnerships with neighboring countries, such as Thailand and Vietnam, will be crucial in developing cross-border tourism circuits that attract visitors from other parts of Southeast Asia. These partnerships will ensure that Cambodia remains an attractive destination for international tourists, despite regional conflicts and security concerns.

Adopting Technology and Data-Driven Solutions for Tourism Management

Technology will also play a vital role in shaping the future tourism impact in Cambodia. Data-driven solutions can help tourism authorities understand visitor behavior and trends, allowing for more personalized tourism services and better crowd management at popular sites like Angkor Wat. Implementing digital platforms that provide real-time safety information and tourist services will give visitors more confidence in their decision to travel.

A Resilient Future for Cambodia’s Tourism Industry

The tourism industry in Cambodia has had a short-term challenge owing to the border conflict, but the future of tourism in the country looks bright. With the correct approach, such as the generation of varied tourism products, along with proper measures regarding safety and the sustainable approach and planning of the new tourism policy, the country has the potential to overcome the challenge and become the leading tourism destination amongst the international and regional tourists. Technology and varied tourism products will enable the country to reclaim its place amongst the top tourism destinations in the Asia-Pacific region and to attract international tourists for the long run in the future.