Cambodia’s Tourism Industry Faces Massive Losses Due to Border Closures and Travel Advisories, Here’s All You Need to Know

Published on January 8, 2026

The tourism industry in Cambodia had severe economic repercussions in the second half of 2025, as a border conflict between Cambodia and Thailand resulted in closure of the land border, which in turn led to travel alerts and cancellation of tourism-related journeys. This had a huge negative impact on Siem Reap and the temple of Angkor Wat, which are major hubs of tourism in Cambodia. According to a recent report covering Oudom Consulting, it is estimated that tourism in Cambodia might experience a loss of up to $1.25 billion because of the conflict.

Declining Tourism Receipts: The Financial Toll of the Conflict

The impact of the border conflict on Cambodia’s tourism industry has been profound, especially in the second half of 2025. According to the report, tourism receipts in Cambodia could decline by anywhere between $650 million and $1.25 billion. The closure of the border with Thailand, coupled with travel advisories issued by multiple countries, disrupted the flow of visitors to Cambodia, especially those traveling to Siem Reap to visit Angkor Wat.

The fallout from these closures affected multiple facets of the tourism economy, including accommodation, food and beverage services, transportation, and retail. The research estimates a 45-60% drop in accommodation revenue in key tourist hotspots, with food and beverage revenue experiencing a 35-50% reduction. In areas dependent on temple tourism, the retail and handicraft sectors nearly collapsed, signaling the extent of the damage to Cambodia’s tourism-dependent economy.

Siem Reap and Angkor Wat: The Epicenter of the Crisis

Siem Reap, home to the world-renowned Angkor Wat temple complex, bears the brunt of this economic downturn. As Cambodia’s tourism hub, Siem Reap is particularly vulnerable to disruptions that affect the flow of international visitors. While the temple complex itself was not physically damaged, its tourism economy was severely impacted by the border conflict.

“Angkor Wat remains Cambodia’s single most powerful international tourism asset,” the report notes, but it is also highly sensitive to disruptions in access and international confidence. As the primary gateway to Cambodia’s tourism industry, Angkor Wat’s demand is tightly linked to travel routes, particularly those passing through Thailand and other neighboring countries. When land borders closed and travel advisories were enacted, Angkor’s international demand collapsed despite the temple itself remaining operational.

Sharp Declines in Angkor Wat Ticket Sales and Economic Losses

Data from the APSARA Authority, which oversees the Angkor Archaeological Park, reveal that ticket sales for Angkor Wat dropped significantly in mid-2025. Sales fell by 18.1% year-on-year in July and a further 25.7% in September, directly coinciding with the border closures and tightened travel restrictions. These declines resulted in a loss of 200,000 to 220,000 international visits, translating to an estimated $7 million to $10 million loss in ticket revenue for the second half of 2025.

While this figure may seem modest on a national scale, it significantly understates the economic role of Angkor Wat. The ticket revenue is only a small portion of the total value generated by each visit, which also includes spending on hotels, food, transportation, and local services. The report estimates that these losses, when considering all related sectors, resulted in an economic hit of approximately $200 million to $350 million for Siem Reap during the latter half of 2025.

Broader Economic Impact on Siem Reap’s Tourism-Dependent Businesses

Siem Reap’s economy is almost entirely dependent on tourism, with a range of businesses reliant on the steady influx of international visitors. Hotels, guesthouses, restaurants, transport services, tour guides, and retail shops all felt the sting of declining visitor numbers. The accommodation sector, in particular, saw a dramatic drop in occupancy rates, especially among mid-range and boutique properties that are more reliant on international leisure travelers.

Food and beverage outlets in Siem Reap also saw a decline in foot traffic, leading to shortened operating hours and reduced services. Transport services, such as tuk-tuks, and tour guiding services, which depend on group and independent travelers, faced near-total demand collapse, as itineraries were suspended due to the ongoing political situation and safety concerns.

Access Disruptions and the Vulnerability of Angkor Wat’s Tourism Economy

The report identifies a central theme in the collapse of tourism demand: tourism vulnerability is less about the quality of the attraction and more about the stability of access points. Angkor Wat’s international demand is driven by regional overland circuits through Thailand, multi-country itineraries, and long-haul packages. As soon as access corridors were disrupted by border closures and travel advisories, demand for Angkor-linked travel rapidly diminished.

“The Angkor shock illustrates that tourism performance is structurally coupled to corridor stability and institutional confidence,” the report states. In other words, the collapse in demand for Angkor Wat was not due to any issues with the site itself, but rather the geopolitical and logistical disruptions affecting access routes.

The Need for Diversifying Access Routes to Angkor Wat

To avoid future vulnerabilities, the report strongly recommends that Cambodia diversify the routes through which visitors access Angkor Wat. This would involve promoting alternative entry points to the temple complex, such as through Cambodia’s other border areas or by increasing regional connectivity with neighboring countries. Without such diversification, Cambodia risks continued exposure to disruptions in access, whether from geopolitical tensions, health crises, or regulatory changes.

Projected Recovery Timeline and Outlook for Cambodia’s Tourism

The road to recovery for Cambodia’s tourism sector is expected to be slow and gradual. While the restoration of land border access with Thailand could take up to 24 months, recovery for other countries that issued travel advisories is likely to vary, ranging from three to 18 months.

Recovery, the report suggests, will depend not only on the resolution of hostilities but on how quickly land access, insurance coverage, and travel confidence can be restored. Failure to manage the sequencing of these recovery efforts could result in long-term losses for Cambodia’s tourism industry, particularly in sectors that rely on overland travel and Angkor-linked value chains.

Cambodia’s Path to Resilient Tourism Recovery

The border conflict between Cambodia and Thailand has had a devastating impact on the country’s tourism industry, particularly in the Siem Reap region, home to Angkor Wat. The conflict has revealed the structural vulnerabilities of Cambodia’s tourism economy, which relies heavily on access corridors for international visitors. Diversifying access routes and building resilience into the tourism infrastructure will be key to ensuring that Cambodia’s tourism sector can recover and thrive in the future. While recovery may take time, strategic planning and investment in access diversification could help Cambodia avoid similar disruptions in the future.