Tourism boss sounds the alarm as Thai-Cambodia border tensions escalate and coup rumours swirl online. Fears of martial law, falling tourist numbers and political chaos threaten to derail recovery. Industry pleads for urgent action to restore investor trust.
A top leader of Thailand’s critical tourism industry is raising the alarm about the rising tensions with Cambodia. In addition, he has expressed concern about online speculation over the possibility of another coup d’état in the country. This comes amid tensions seen between the army and the government. At the same time, the government is being attacked by protest groups while there is wrangling among ministers about a proposed cabinet reshuffle.
Rising tensions between Thailand and Cambodia are sending shockwaves through Thailand’s struggling tourism industry. The Association of Thai Travel Agents (ATTA) now fears the conflict could drag down recovery efforts across the economy.
Adith Chairattananon, Secretary-General of ATTA, said the situation is becoming dangerous. “There are now serious concerns a military clash could happen,” he warned.
He urged the Thai government to act immediately. “The government must take clear and urgent action,” he said. Otherwise, the situation could spiral and damage both society and the fragile economy, he added.
Thailand is already facing slow growth and low investor confidence. Therefore, said Adith, it is vital to protect the country’s economic drivers—especially tourism.
Political instability already impacting tourist sentiment and has depressed key Chinese arrivals by over 30%
Tourism is now Thailand’s main economic engine. However, it is once again under threat, this time from political tension and negative sentiment. So far, the conflict has not caused mass cancellations. Still, Adith said, the gloomy atmosphere is taking a psychological toll on travellers.
“People may still travel, but the mood is different,” he explained. Uncertainty and fear can quickly lead to fewer bookings, especially from sensitive markets like China.
Chinese tourists were Thailand’s top source of foreign visitors in early 2025. However, arrivals dropped sharply—down 32.71% compared to the same period in 2024.
From January to May, just 1.95 million Chinese visited Thailand. That number is far below expectations and reflects deep concern in the market.
Meanwhile, arrivals from other countries also failed to make up the gap. Malaysia came second with 1.9 million tourists, followed by India (978,000), Russia (961,000), and South Korea (673,000).
Fears of a cabinet shake-up and pushback by Anutin are deepening investor jitters and spooking the markets
Worryingly, May numbers fell even further. Foreign arrivals plunged by 13.93% compared to May last year. Moreover, said Adith, instability at the top is making things worse. Thailand’s expected cabinet reshuffle is also shaking investor confidence.
Just this week, Prime Minister Paetongtarn Shinawatra appeared to acknowledge a cabinet reshuffle may be unavoidable. Her comments marked the first public sign of movement on the long-simmering issue.
However, on Saturday, Deputy Prime Minister Anutin Charnvirakul pushed back hard.
He made it clear he would not support any attempt to alter Bhumjaithai’s present allocation of cabinet seats. Anutin’s message was simple: no changes, no compromise.
According to him, the ministries given to Bhumjaithai were part of a binding coalition agreement. “When Pheu Thai invited us to join in 2023, the deal was clear,” he reportedly told close allies.
The arrangement, he insisted, was not temporary. It was set in stone.
Tourism industry warns unclear cabinet signals and coup rumours could cripple fragile investor sentiment
Domestic consumers are feeling the economic strain. At the same time, international investors are now pausing to watch new policy directions.
“If the new cabinet sends unclear signals, investors may delay decisions,” the tourist boss said.
That delay could slow both tourism spending and job creation in key sectors.
The tourism industry is now hoping the current Tourism Minister Surawong Thienthong keeps his position. He has held the post only 10 months but already rolled out several recovery policies. These include both medium-term and long-term investment measures.
Tourism leaders see those as essential for lifting Thailand’s global competitiveness. Adith stressed that any abrupt change in leadership could delay progress. “We’ve seen signs of recovery,” he said. “Now we need continuity, not more confusion.”
Another threat has emerged online: coup rumours. Although still speculative, the rumours are spreading fast across Thai social media. The rumours have been fanned by anti-government protest groups which convened in Bangkok on Friday. In particular, these groups expressed disillusionment with the civilian government and support for the military.
“If a coup happens, the damage to our image will be huge,” Adith warned. Thailand only returned to democratic governance in 2019 under a 2017 constitution.
A fresh coup would wreck Thailand’s image, rattle allies, and wipe out any diplomatic progress since 2019
A coup, he said, would instantly undo that progress. It would also worsen investor fears and hurt diplomatic ties.
“Thailand has been through coups before,” he noted. “They’ve never helped the economy and they’ve never improved our global image.”
Meanwhile, tourist safety remains a key concern, especially among Chinese travellers. In January, a well-known Chinese actor, Xing Xing, was kidnapped while visiting Thailand. That high-profile incident made headlines across Asia. Since then, Chinese tourists have grown wary of visiting Thailand.
In response, the Bank of Thailand revised its tourism forecast. It now expects only five million Chinese tourists in 2025—a 25% drop from 2024.
The overall tourism forecast has also been cut. The central bank now expects just 37.5 million visitors this year, down from 39.5 million. That downgrade reflects the fragile state of Thailand’s economic recovery. Tourism was expected to lift growth in 2025.
But now, said Adith, “Every day of delay makes recovery harder.”
Government urged to act fast as tourism confidence erodes and fundamentals risk being drowned by politics
He called on the government to stabilize the situation, restore investor trust and maintain leadership in key ministries.
“Time is critical,” he said. “Tourism cannot wait for politics to settle.”
So far, the signs are not encouraging. Tourist arrivals are falling, political noise is growing and economic indicators are soft. Yet, Thailand still has strong tourism fundamentals. Natural beauty, good infrastructure, and global reputation remain intact—if the government can control the narrative.
That will require clarity, consistency and quick action, said Adith. “If we let this situation drift, we risk losing more than just tourists,” he warned.
Thai tourism chief calls for urgent diplomacy with Cambodia as tensions trigger martial law near border
He urged authorities to deliver a clear diplomatic solution with Cambodia. “At the very least, show international visitors that Thailand remains safe and stable,” he said.
Without urgent steps, Thailand’s recovery could stall. The country can ill afford that now, especially with exports flat and household debt at record levels.
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The private sector is watching closely. So are international investors, regional neighbours and millions of tourism-dependent workers across Thailand.
“Don’t let politics sink tourism,” Adith concluded. “Thailand needs stability—now more than ever.”
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Further reading:
Dangerous impasse between Thailand and Cambodia as PM rules out International Court of Justice (ICJ)
Hun Manet confirms Cambodia ultimately may decide to send border dispute with Thailand to the Hague
Khmer soldier killed in deadly gunfire between Thai and Cambodian armies near Ubon Ratchathani
Thaksin to address state board on drug suppression despite howls of protest from human rights groups
Health Minister Somsak launches regulatory blitz to outlaw non-medical cannabis use within 40 days
