Khao San Road operators are expecting a disappointing high season, with the Middle East conflict deterring long-haul travellers and proposed cannabis restrictions threatening more than half the area's dispensaries.
The Khao San Road Business Association says accommodation bookings are running below expectations as the tourism district approaches its peak period. The market is heavily dependent on long-haul visitors, particularly backpackers from Europe.
Long-haul bookings slow
Association president Sanga Ruanwattanakul said many European travellers were hesitant to book Thailand trips because of the conflict in the Middle East, including concerns over transit flights via Gulf carriers.
Direct flights on other airlines are also much more expensive because of limited capacity and high fuel costs, he said.
Some visitors may still choose Thailand but spend less, while others could cancel their trips altogether. This is particularly difficult for Khao San Road, where most accommodation is hostels or mid-range hotels serving price-sensitive guests, rather than premium or luxury properties elsewhere in Bangkok.
Average occupancy in the Khao San area fell to 50% in the third quarter, Mr Sanga said.
Cannabis bill puts small outlets at risk
The association also expects cannabis businesses on Khao San Road to be adversely affected by a new cannabis bill endorsed by the cabinet this week. The bill seeks to limit cannabis use to medical purposes, closing regulatory gaps that emerged after Thailand decriminalised cannabis in 2022.
Mr Sanga said the new requirement for shops to employ medical personnel able to prescribe cannabis would add 30,000-50,000 baht a month to operating costs.
Of roughly 100 dispensaries around Khao San Road, about half are expected to close. Some operators may hire medical staff, while many others are likely to move into different businesses.
He questioned whether Thailand had enough medical personnel for all small dispensaries if the country pursues a medical cannabis policy. Most tourists who visited licensed shops in recent years had come for recreational rather than medical use, he said.
Tourists can still find cannabis through illegal sellers and the black market, Mr Sanga warned. He said it was important that information about the rules was clearly communicated to tourists and patients.
Calls for enforcement and zoning
Although many shops have switched to selling cannabis for medical purposes, Mr Sanga said it remained uncertain whether some could secretly sell it for other uses without stricter inspections and enforcement.
The association has long called for rules covering recreational cannabis use during the regulatory vacuum. It previously proposed properly zoning cannabis shops, allowing outlets only in major tourism districts and preventing children and adolescents from accessing cannabis.
It also urged the government to introduce laws enabling authorities to arrest illegal sellers and close their operations.
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25 September 2026
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