Jan. 31, 2003 - The Thai-Cambodian conflict will take its toll on the two countries' tourism industries and hurt Thai players in the sector, say industry executives. 

The Phnom Penh riots have cut the flow of Thai tourists to Cambodia and could lead many international travellers to think twice before going there. 

"It's only natural for tourists to react like that to a place where they feel unsafe and Cambodia, which is increasingly relying on tourist dollars, will definitely bear the brunt," said an executive of a major European airline. 

"Both Thai and Cambodian tourism industries will be equally hurt," said Armin Schoch, group general manager of Diethelm Travel, a major organiser of tours to Cambodia. 

Thai Farmers Research Centre estimated that Thailand would lose about two billion baht in revenue from Cambodians who would visit Thailand this year if there were no conflict. 

Cambodia would lose over 50,000 Thai visitors arriving by air alone. The figure could be significantly higher if those travelling by land was included. 

As well, the possibility that Thai airlines, specifically Thai Airways International and Bangkok Airways, would review their regular services to Cambodia could deter the flow of tourists to the country, an industry executive said. 

"If THAI flights are suspended, the Cambodian tourism industry will be affected but visitors can switch to Kuala Lumpur, Singapore, Vietnam and even Hong Kong to connect flights. When that happens, it will be too late for THAI to restore its position," said Mr Schoch. 

THAI said yesterday its flights from Bangkok to Phnom Penh would not resume for at least four days for security reasons. The national carrier operates two daily return flights between Bangkok and Phnom Penh. 

Bangkok Airways cancelled all four daily flights to and from Phnom Penh, including the four flights between the Cambodian capital and Siem Reap. 

Mr Schoch is optimistic, saying that he expects that in less than a month the tourism industries of both sides would forget about what had happened. 

Supachai Verapuchong, managing director of Thai Nakorn Pattana Co, owner of the 75-room Royal Phnom Penh Hotel, said the damage to its property was estimated at hundreds of millions of baht, as it included guests' belongings, which were looted. 

Sakchai Tangkoblap, general manager of the Juliana Hotel in Phnom Penh, said it would be closed for a certain period due to the destruction. "The anti-Thai rioting has damaged the tourism industry in Cambodia overnight." 

Outside the capital, Cambodia is also likely to lose tax revenue from border casinos. There are about 10 casinos in Poipet, just across from Aranyaprathet, which generated income of 20 billion baht, said one Thai casino owner who refused to be named. 

"The Cambodian government annually earns about 400-500 million baht from tax collections on casino businesses, quite a large sum for a small country." 

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(c) 2003, Bangkok Post, Thailand. Distributed by Knight Ridder/Tribune Business News.