TRAT — Fighting along Thailand’s eastern border has inflicted more than 1 billion baht ($32 million) in economic losses in just nine days, with damage expected to rise sharply as border closures disrupt trade and undermine tourism, local business leaders said.
Sutthilak Khumkhrongrak, president of the Trat Provincial Federation of Thai Industries, said preliminary estimates show losses of nearly 500 million baht ($16 million) in the industrial sector alone. Tourism losses are estimated at no less than 300 million baht ($9.6 million), he said, as foreign visitors cancel trips amid security concerns.
Hotel occupancy on Koh Chang and Koh Kood has plunged to about 20% from near full capacity during the year-end peak season, Sutthilak said. He added that foreign tourists are losing confidence, with widespread cancellations already booked through the New Year.
International tourists board boats to island destinations in Trat province before fighting broke out on Dec. 7, 2025.The unrest has also driven up transport costs for goods and services by as much as 100% during an earlier curfew, which has since been lifted. While costs are expected to gradually normalize, businesses remain wary, and some producers have warned of price increases if instability continues.
Labor costs are another pressing concern, particularly for employers in evacuated areas such as Khlong Yai district, four sub-districts in Mueang Trat, and Bo Rai district. Sutthilak said many businesses continue to shoulder monthly wage bills of 2–3 million baht despite having no income, as Cambodian migrant workers remain unregistered and guidance on compensation from government agencies remains unclear.
Losses from the nine days of fighting do not include the impact of prolonged border closures on cross-border trade, Sutthilak said, warning that total economic damage could ultimately reach tens of billions of baht.
Smoke rises along the Thai-Cambodian border in Trat province following an airstrike by Thai F-16 fighter jets on Cambodian military positions on Dec. 14, 2025.Pichaya Thachaiaditharap, president of the Trat Hotel and Resort Association and owner of Koh Kood Paradise Hotel, said the clashes have severely shaken foreign tourist confidence. He said large numbers of room bookings have been canceled through early 2026, resulting in heavy losses for operators.
“At first, the impact was limited and we could still explain the situation to tourists,” Pichaya said. “But after fighting spread to Koh Kong and the news circulated, everything collapsed. Gunfire could be heard as far as Koh Kood.”
He said travel advisories issued by foreign embassies warning citizens to exercise caution, particularly when traveling to Koh Kood, prompted many cancellations, especially from British and French tourists. Some cancellations were also reported from Germany.
Pichaya said Koh Chang and Koh Mak have been less affected due to their distance from the conflict zones. He said the association has urged government agencies to provide clear explanations in English to help tourists better understand the situation.
While losses are not as severe as during the COVID-19 pandemic, he said, the impact is significant and operators hope the fighting will end soon.
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