Implications of the Thai-Cambodia crisis trade and tourism

The escalating tensions along the Thai-Cambodian border have not just caused a market-shaking political crisis in Bangkok; they have begun to disrupt cross-border trade.

Both governments have introduced measures including border-post closures, import bans and restricting non-essential travel -- interrupting the movement of goods and tourism. While Cambodia has always been one of ASEAN's least developed economies, it has grown quickly in recent years and remains a key market for Thai exporters.

Cambodia has banned imports of Thai oil, fruit, vegetables, and gasoline, accounting for about 10% of Thai export flows in that direction. Thailand accounts for about 10% of Cambodia’s total imports, making it the third-largest trading partner on that basis.

Meanwhile, Cambodia receives about 20% of Thailand's oil, fruit, and vegetable exports.

While alternative suppliers can likely be found for some goods (particularly fuel), Cambodia will feel the most immediate impact on tourism -- which contributes around 9.4 percent of GDP and accounts for more than 5% of the workforce. Since the pandemic, Thai tourists have become increasingly important in this market, surpassing visitors from China.