Impact of Cambodia-Thailand Border Clashes on Angkor Wat Tourism and Local Economies

Published on December 26, 2025

Tourism in Cambodia suffered a significant setback in 2025 as border clashes between Cambodia and Thailand escalated. Angkor Wat, one of the world’s most visited and renowned historical sites, saw a significant drop in visitors as tensions between the two countries escalated into armed conflict. The ongoing territorial dispute, which has flared up intermittently for decades, took a new turn this year, instilling fear in international visitors and causing a ripple effect throughout Cambodia’s tourism sector. As a result, the local economy in Siem Reap, where Angkor Wat is located, has been severely impacted, with businesses that rely on tourist dollars suffering significant losses.

The Root of the Conflict: Historical Disputes and Recent Escalation

The origins of the current conflict between Thailand and Cambodia trace back to long‑standing border disputes, particularly regarding the ownership of certain temples and land along their shared border. The most notable point of contention is the area around the ancient temple of Preah Vihear, a UNESCO World Heritage site, which has been at the centre of bilateral tensions. The territorial disagreement dates back to colonial times, with conflicting interpretations of borders drawn by French colonial administrators in the early 20th century.

In recent years, despite efforts to reach peaceful resolutions, sporadic violence has erupted along the border, often intensifying during politically sensitive periods. The conflict in 2025 was triggered by renewed hostilities in areas near the disputed zones. Artillery fire and military confrontations became widespread, leading to the closure of key border crossings, which has disrupted travel between the two countries. While Siem Reap and the Angkor Wat temple complex lie far from the immediate conflict zones, the global media’s coverage of the clashes has created a perception of widespread insecurity, impacting international tourism.

A Drastic Decline in Visitor Numbers

Before the escalation of the conflict, Angkor Wat was a thriving hub for global tourism, attracting millions of visitors annually. However, with the onset of the border clashes in 2025, travel advisories from various governments, including Australia and Canada, urged caution for any non‑essential travel to Cambodia. The perception of risk, even though Angkor Wat itself was not directly affected by the fighting, caused a sharp decline in international visitors to Siem Reap.

Local businesses that once flourished during the high tourist season are now struggling to survive. Hotels, restaurants, souvenir shops, and tour companies have been hit hardest, with many reporting drops in income by up to 80 per cent compared to previous years. For example, tour guides, a key component of Siem Reap’s tourism industry, have experienced drastic reductions in bookings, while tuk‑tuk drivers and street vendors have faced empty streets, especially around Angkor Wat and other popular temples.

Many businesses in Siem Reap are reliant on tourists, particularly international travellers, whose spending forms the backbone of the local economy. With fewer visitors coming through, the financial strain has caused significant anxiety among business owners who have seen months of anticipated profits vanish. The economic repercussions are not confined to the city; surrounding villages, where families work as farmhands or in local hospitality businesses, are also feeling the loss.

Local Impact: Siem Reap’s Struggles

Siem Reap, once a bustling hub of cultural exchange and commerce, is now grappling with the effects of reduced tourism. Once‑crowded streets filled with the sounds of eager visitors have grown eerily silent, and popular restaurants and cafes remain mostly empty. The most affected are small‑scale businesses that rely on foot traffic, such as local shops selling handicrafts and traditional goods. Many vendors, once thriving during peak seasons, now find themselves struggling to keep their doors open.

The government and local authorities have made efforts to mitigate the effects of this downturn by promoting domestic tourism and providing assistance to businesses. However, the pandemic recovery phase is still fresh, and the added burden of a conflict-related tourism drop is proving difficult to overcome. Many local workers are now asking for additional support, as government subsidies and emergency relief programmes have not been sufficient to cover the losses caused by the sudden drop in tourism.

Government and Industry Responses

In response to the crisis, Cambodian authorities, along with tourism bodies, are working hard to restore confidence in the country’s tourist destinations. Measures include campaigns aimed at reassuring international visitors about the safety of key areas such as Siem Reap, Phnom Penh, and Sihanoukville. These efforts include media outreach to highlight the areas that remain unaffected by the conflict.

However, the most immediate focus has been on domestic tourism. Local tourism bodies have partnered with national travel agencies to create promotional packages that encourage Cambodians to explore their own country. In addition to this, several cultural festivals and events have been introduced to attract visitors, helping to fill the gap left by foreign tourists.

While these efforts have begun to show some positive effects, the recovery will be slow. International flights to Cambodia are still operating, but with fewer passengers, and tourist arrivals remain low. To aid the recovery, the government is also in discussions with international travel agencies to provide more marketing opportunities, particularly in Southeast Asia and other key markets that Cambodia has traditionally relied on.

The Role of Travel Advisories and Media

Travel advisories from international governments have played a major role in shaping perceptions of safety. Many tourists, especially those from the United States, Europe, and Australia, have canceled or postponed their trips to Cambodia due to the warnings. While it is true that Siem Reap and other popular tourist spots have not been directly affected by the fighting, the media’s portrayal of the conflict, coupled with the closure of border routes, has created an environment of uncertainty.

The advisories have led to a change in travel patterns. Tourists who had planned to visit Cambodia have instead opted for alternative destinations in Southeast Asia, such as Vietnam, Laos, and Myanmar, which have not experienced similar disruptions. This shift in travel preferences has further exacerbated Cambodia’s tourism crisis.

Looking Ahead: Tourism Recovery and Regional Stability

The recovery of Cambodia’s tourism industry is closely tied to the resolution of the border conflict with Thailand. As diplomatic talks continue, it is hoped that a long‑term solution can be found, enabling the restoration of peace and stability along the border. This will be crucial not only for the safe movement of people but also for the restoration of confidence in Cambodia as a tourist destination.

While the immediate future remains uncertain, there are signs that Cambodia’s tourism sector can rebound once political stability is restored. The government’s focus on diversifying its tourism offerings, including ecotourism and cultural heritage experiences, could help rebuild Cambodia’s reputation as a top travel destination.

Conclusion

The border conflict between Thailand and Cambodia has had a significant impact on the tourism industry in Angkor Wat and Siem Reap. The sharp drop in visitors, combined with economic hardships faced by local businesses, has created a difficult situation for Cambodia’s tourism industry. However, the government and tourism stakeholders are working to recover by making targeted efforts to reassure both international and domestic travellers. Finally, the resolution of the conflict and the restoration of stability will be critical to Cambodia’s re-emergence as a leading tourism destination in Southeast Asia.