Impact of Cambodia-Thailand Border Tensions on Regional Tourism: Decline in Cambodia’s Tourism as Thailand Shows Resilience

Published on November 23, 2025

The ongoing border tensions between Cambodia and Thailand have had a significant impact on the tourism industries of both countries, especially with the closure of land borders between them since June 2025. The closure has severely disrupted cross-border travel, affecting Cambodia more than Thailand, and resulting in a substantial decline in tourism revenues and land travel.

Cambodia Faces Tourism Decline Due to Border Shutdown

Cambodia’s tourism sector has been hit hard by the border shutdown, with the country experiencing an 8.8% drop in tourism revenue and a 26.5% decline in land-based travel. From January to September 2025, Cambodia recorded just over 2.2 million land entries, a sharp decrease compared to the 3.04 million in the same period the previous year. This drop in tourism is primarily due to the closure of land borders with Thailand, a crucial route for travelers.

The border tensions have particularly impacted tourism from Thailand, which has traditionally been Cambodia’s largest source market. Thai visitors to Cambodia have decreased by over 35% in 2025, with a dramatic 91% drop in September alone. Similarly, neighboring countries like Laos also saw a reduction in tourism, as travelers from Laos often transited through Thailand to reach Cambodia.

In addition to the border conflict, Cambodia has faced growing safety concerns, including a surge in cybercrime scams, such as the abduction of Korean nationals. This has led to a decrease in tourist arrivals from South Korea and other Asian markets, further exacerbating the decline in Cambodia’s regional tourism. However, some markets, such as China and Taiwan, have shown positive growth during this challenging period.

Europe Provides a Ray of Hope for Cambodia’s Tourism

Despite the challenges in the Asian market, European tourism has remained a bright spot for Cambodia. As of September 2025, Cambodia recorded over 500,000 arrivals from Europe, marking a 12.3% increase compared to the previous year. Visitors from France, the UK, and Germany showed notable growth, with France seeing an increase of 9.7%, the UK 17%, and Germany 7%. This surge from European markets has helped offset some of the declines in Asian tourism, with European travelers increasingly seeking alternative destinations due to safety concerns in other regions.

Cambodia’s Tourism Board Responds with New Initiatives

In light of these challenges, Cambodia’s Tourism Board (CTB) has actively sought to reposition the country as a diverse and attractive destination. At WTM London 2025, Kim Minea, CEO of the CTB, outlined new initiatives to diversify the tourism offering. One such initiative is the introduction of three-day packages focused on coastal destinations like Kep and Kampot, which will highlight the natural beauty of Cambodia beyond its iconic temples like Angkor Wat. This approach aligns with Cambodia’s broader goal of promoting the island nation as a unified destination, blending cultural, natural, and coastal tourism experiences.

Thailand: Localized Impact but Resilient Tourism Performance

On the Thai side, the border conflict has had a more localized impact, particularly in the northeastern provinces near Cambodia. While Thailand reported strong overall tourism performance in 2025, with 26.69 million international arrivals, it also experienced a 7.2% decline in arrivals from neighboring countries, including Cambodia, which saw a 46.5% decrease in Thai visitors.

Nevertheless, Thailand’s tourism industry remains resilient. European markets continue to show strong growth, with arrivals from the UK, France, Germany, and Poland increasing by 11% to 30%. Additionally, long-haul markets, including the USA and Canada, saw a rise in visitor numbers by 5-7%. These international markets have helped mitigate the challenges posed by the declining regional tourism, ensuring Thailand’s tourism sector remains robust.

Regional Collaboration for Future Recovery

As Cambodia and Thailand continue to navigate their border tensions, both countries are prioritizing tourism development and regional cooperation to ensure long-term recovery. Tourism remains a vital sector for both economies, and both nations are committed to revitalizing the industry through joint efforts and initiatives. This collaboration will be essential in overcoming the current challenges and ensuring the future prosperity of the tourism sectors in both Cambodia and Thailand.