He was due to start a four-day visit on Wednesday but yesterday cancelled following five days of protests against Prime Minister Samak Sundaravej.
Flights to the holiday resort of Phuket have been disrupted by the protests as have road and rail services in the capital Bangkok.
Thousands of Britons are trapped in Thailand as a result of the unrest.
Fifteen thousand people were turned away from the airport on Phuket and the Thai tourist authority is pleading with hoteliers to give stricken tourists accommodation.
Last night Sundaravej was facing mounting pressure to resign.
Anti-government protesters claim he has plundered the country’s wealth. They have been fighting running battles with police. The prince, 48, was to make the visit in his role as Britain’s trade ambassador.
Planned trips to Singapore and Vietnam will still go ahead.
A palace source said: “Prince Andrew was advised not to go because of security fears. He was looking forward to going and is disappointed.”