PATTAYA, Thailand — Business operators in Pattaya’s tourism industry are calling on the government to take immediate and effective measures to restore confidence among travelers and safeguard the city’s vital tourism economy. The industry views recent border clashes between Thailand and Cambodia, alongside concerns over the strong Thai baht, as more significant threats than the upcoming 19% U.S. import tax effective August 7.
Mr. Thanet Suphornsahasrangi, President of the Chonburi Tourism Federation, shared his perspective on these challenges. He acknowledged that while the reduction in U.S. import tariffs from 36% to 19% could reduce costs on some goods used by hotels and related businesses, it poses less concern compared to the negative impact of the border clashes on traveler confidence.
“The recent clashes have raised safety questions among tourists. Hotels have received numerous inquiries about whether Pattaya and Chonburi remain safe for visitors,” Thanet said. “Though official documents have been sent to reassure travelers, some regions like Trat and Chanthaburi have already experienced a 50% drop in hotel occupancy due to fears over the conflict.”
Operators are particularly anxious about the high season starting late November, when long-haul tourists normally arrive in large numbers. “If this situation persists, tourists may seek alternatives in neighboring countries, which could further dent Thailand’s tourism market,” he warned.
Despite some encouraging signs—such as an increase in Chinese tourists from 8,000-9,000 to 12,000-13,000 arrivals—the travel sector still faces headwinds. Mr. Thanet emphasized that the government should prioritize restoring safety perceptions and address the strength of the baht, which currently makes travel more expensive for foreign visitors.
Meanwhile, Mr. Sinchai Watanasatsathorn, an executive of the Flipper Group in Pattaya, noted that the new U.S. tariff would not directly affect tourism but might indirectly impact SMEs involved in exports. More pressing is the fragile domestic economy and border conflicts, which have caused Thai consumers to reduce spending, including on discretionary items such as travel.
“The border tensions are causing real damage to tourism demand,” Mr. Sinchai said. “Even though the current impact may seem limited, if the clashes continue, the long-term consequences for Pattaya’s tourism sector could be severe.”
He revealed that some hotels in Pattaya have seen visitor numbers drop by 20% compared to last year. Operators have already adapted their business models post-COVID by reducing manpower and controlling costs. However, if tourist arrivals do not rebound, more drastic adjustments will be necessary.
Tourism industry leaders stress that the government must act quickly to:
-Strengthen safety and security assurances to domestic and international tourists.
-Implement effective measures to resolve border tensions swiftly.
-Stabilize or address the strong Thai baht’s effect on travel costs.
-Support local tourism businesses to mitigate ongoing economic challenges.
As Pattaya heads toward its crucial high season, stakeholders hope decisive government action will restore traveler confidence and keep the city’s tourism engine running smoothly.
