The escalating conflict between Thailand and Cambodia could have a negative impact on their tourism-dependent economies, but Cambodia’s is more vulnerable, analysts said.
Both countries exchanged fire across the border in multiple areas on Thursday after weeks of simmering tensions, with least 11 civilian deaths.
Tourism is a significant economic driver for both countries, contributing about 12% and 9% to Thailand’s and Cambodia’s gross domestic product, respectively, in 2024.
Thailand received more than 35 million tourists in 2024, while Cambodia welcomed 6.7 million.
“Thailand, where tourism ... supports a large segment of the workforce, remains highly exposed to perceptions of instability,” according to Sreeparna Banerjee, associate research fellow at the Observer Research Foundation, told CNBC on Friday.
