Hotel tycoon calls for urgent end to Thai-Cambodia border spat
Thailand’s 50 billion baht stake in Cambodia is at risk as safety issues and border closures disrupt tourism, trade and logistics
[BANGKOK] Thailand and Cambodia should urgently resolve their simmering border conflict to minimise hit to businesses and tourism, according to Minor International, one of Asia’s largest hospitality groups.
The cost of tensions between the two South-east Asian neighbours has not been fully recognised, and will have a significant impact on business operations of many Thai companies, William Heinecke, chairman of Minor International, said at a panel organised by the Stock Exchange of Thailand on Wednesday (Aug 27).
Thailand has about 50 billion baht (S$2 billion) of equity investment in Cambodia and the cost will be seen in not only the cancellation of trips by business people and tourists because of safety concerns, but also in upending logistics due to border closures, he said.
“The tension between Thailand and Cambodia will have significant impact on Thailand if it is not resolved as quickly as possible,” Heinecke said. Thailand is a hub for connecting flights to several of its neighbouring countries, and continued tensions will affect tourists, he said.
The deadliest clashes between Thailand and Cambodia in decades left more than 40 people dead and displaced hundreds of thousands civilians on either side. While a US-backed ceasefire halted fighting, land border crossings remain shut for trade and mobility with both the sides stationing troops along their contested frontier.
“The border closure has now forced all logistics to go to Vietnam,” Heinecke said. That means the shipment of goods “has to be made through Vietnam for our retail and restaurants in Cambodia.”
Minor operates at least two hotels in Cambodia under its Anantara and Avani brands, according to the company’s annual report and website. It also has The Pizza Company and Swensen’s restaurant franchise outlets under its Minor Food unit.
The company owned 370 hotels and managed 197 hotels and serviced suites in 57 countries at the end of June, according to an exchange filing on Aug 1.
Tourism makes up about 12 per cent of Thailand’s economy, but the nation’s planning agency recently cut its forecast for foreign arrivals this year to 33 million from 37 million, citing a slowdown in Chinese visitors. Overseas arrivals have fallen 7 per cent to 21.4 million so far this year, according to official data. BLOOMBERG
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