tourism industry in cambodia essay

Tourism in Cambodia

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Tourism in Cambodia is big business. But why is tourism so important here and how should it be managed? Read on to find out…

Cambodia, with its profound history and enigmatic landscapes, is a magnet for travellers seeking both heritage and nature. From the awe-inspiring temples of Angkor Wat to the untouched beaches of Sihanoukville, the country showcases a rich tapestry of experiences. In this article, I will explore the myriad facets of Cambodia’s tourism sector, illuminating its diverse attractions and cultural depth.

Geography of Cambodia

Cambodia is a Southeast Asian country located in the southern part of the Indochinese Peninsula. It shares borders with Thailand to the northwest, Laos to the northeast, Vietnam to the east, and the Gulf of Thailand to the southwest. Here is a brief overview of Cambodia’s geography :

• Landforms: Cambodia’s terrain is characterized by low-lying plains, river valleys, and a central plain known as the Cambodian Plain or the Central Lowlands. The Mekong River, one of Southeast Asia’s major waterways, flows through the eastern part of the country, providing fertile soil and playing a crucial role in Cambodia’s agriculture.
• Cardamom Mountains: In the southwestern part of Cambodia lies the Cardamom Mountains, a range that stretches parallel to the Gulf of Thailand. These mountains are covered with dense forests and are home to various wildlife species, including endangered ones like tigers and Asian elephants.
• Densely Forested Areas: Large parts of Cambodia are covered by forests, particularly in the northern and eastern regions. These forests are rich in biodiversity, with diverse flora and fauna, including rare species like the giant ibis and the Asian black bear.
• Tonle Sap Lake: In the central part of the country, there is the Tonle Sap, which is Southeast Asia’s largest freshwater lake. It is unique because its flow changes direction depending on the season. During the rainy season, the lake expands significantly, while during the dry season, it drains into the Mekong River.
• Coastal Areas: Along Cambodia’s southern coastline, there are sandy beaches and several offshore islands in the Gulf of Thailand. Popular tourist destinations like Sihanoukville and Kep are located in this region, attracting visitors with their beautiful beaches and tropical landscapes.
• Climate: Cambodia has a tropical monsoon climate with two distinct seasons. The rainy season usually lasts from May to October, characterized by high humidity and frequent rainfall. The dry season runs from November to April and brings drier and cooler weather.

Overall, Cambodia’s geography offers a diverse landscape, ranging from fertile plains to mountainous regions and coastal areas. This diversity contributes to the country’s natural beauty, rich biodiversity, and varied agricultural resources.

Tourism Industry in Cambodia: 

Cambodia, a vibrant nation nestled in the heart of Southeast Asia, has witnessed a remarkable growth in its tourism industry over the past few decades. This paper aims to examine the country’s tourism sector, exploring its historical significance, popular tourist destinations, policy framework, and economic impacts. By doing so, a comprehensive understanding of Cambodia’s tourism industry can be gained.

Cambodia’s rich historical legacy, prominently exemplified by the majestic temples of Angkor Wat, has been instrumental in shaping its tourism landscape. Angkor Wat, a UNESCO World Heritage site, stands as a testament to the once-mighty Khmer Empire and attracts tourists from across the globe. Furthermore, Cambodia’s tumultuous past, including the tragic era of the Khmer Rouge regime, has generated interest among history enthusiasts and visitors seeking a deeper understanding of the nation’s complex history.

Beyond Angkor Wat, Cambodia offers an array of captivating destinations that contribute to its allure as a tourist hotspot. The bustling capital city of Phnom Penh showcases a blend of French colonial architecture and traditional Khmer heritage. The coastal city of Sihanoukville entices beach lovers with its pristine beaches and lively atmosphere, while the tranquil riverside town of Battambang offers an authentic glimpse into rural Cambodian life. Other notable attractions include the ancient temple complex of Preah Vihear, the wildlife-rich Cardamom Mountains, and the picturesque islands of Koh Rong and Koh Rong Samloem.

Recognizing the importance of the tourism sector, the Cambodian government has implemented various policies and initiatives to foster its growth. These include infrastructure development, visa facilitation measures, and the preservation of cultural and natural heritage sites. The Ministry of Tourism plays a pivotal role in promoting Cambodia as a tourist destination and has been actively engaging in partnerships and collaborations with international organizations and tour operators to enhance the industry’s sustainability and competitiveness.

The tourism industry has emerged as a vital contributor to Cambodia’s economy. Its rapid growth has led to the creation of employment opportunities, particularly in the service sector, thereby improving livelihoods and reducing poverty. Additionally, tourism revenues have supported the development of infrastructure, healthcare, and education systems, indirectly benefiting local communities. However, challenges such as seasonal fluctuations, environmental sustainability, and equitable distribution of tourism benefits persist and necessitate continued efforts for inclusive growth.

The tourism industry in Cambodia showcases the country’s rich cultural heritage, breathtaking landscapes, and hospitable communities. With its historical significance, diverse tourist destinations, proactive policies, and positive economic impacts, Cambodia has positioned itself as a prominent player in the Southeast Asian tourism landscape. While ongoing challenges persist, the sustained growth of the tourism sector holds immense potential for further socioeconomic development and the preservation of Cambodia’s unique identity.

Statistics about Tourism in Cambodia: 

Now lets highlight a few ket statistics about tourism in Cambodia:

• Tourist Arrivals: In 2019, Cambodia welcomed approximately 6.61 million international tourist arrivals.
• Tourism Revenue: The tourism sector contributed around $4.92 billion in revenue to Cambodia’s economy in 2019.
• Economic Impact: Tourism accounted for about 12.1% of Cambodia’s GDP in 2019.
• Employment: The tourism industry provided employment for around 630,000 people in Cambodia in 2019, representing approximately 12.7% of total employment.
• Main Source Markets: The top five source markets for international tourists visiting Cambodia in 2019 were China, Vietnam, Thailand, South Korea, and the United States. 
•  Angkor Wat Visitors: Angkor Wat, the famous UNESCO World Heritage site, attracted more than 2.2 million visitors in 2019.
• Tourism Growth: Between 2010 and 2019, Cambodia experienced an average annual growth rate of approximately 10.3% in international tourist arrivals.
• Average Length of Stay: The average length of stay for international tourists in Cambodia was around 6.7 days in 2019.
• Accommodation Capacity: Cambodia had a total of around 1,067 registered hotels and guesthouses with over 64,000 rooms available in 2019.
• Eco-Tourism Potential: Cambodia has a significant potential for eco-tourism with its diverse natural landscapes, including national parks, wildlife sanctuaries, and ecotourism sites.

Most Popular Tourist Attractions in Cambodia

Here are some of the major tourist attractions in Cambodia:

Angkor Archaeological Park:

• The Angkor Archaeological Park is an unparalleled treasure trove of ancient ruins and religious structures that testify to Cambodia’s glorious past. Nestled amidst lush jungles near the city of Siem Reap, this UNESCO World Heritage site encompasses over 400 square kilometers. Its centerpiece, Angkor Wat, is the world’s largest religious monument and an iconic symbol of Cambodia. Built during the Khmer Empire’s zenith in the 12th century, Angkor Wat displays intricate bas-reliefs, towering spires, and an awe-inspiring architectural design. Other notable temples within the park include Bayon, Ta Prohm, and Preah Khan, each exhibiting distinct architectural styles and historical significance.

Royal Palace in Phnom Penh:

• Situated in the capital city of Phnom Penh, the Royal Palace represents the pinnacle of Cambodia’s royal heritage. Serving as the official residence of the King since the mid-19th century, this magnificent complex showcases a fusion of traditional Khmer architecture and European influences. Its centerpiece, the Silver Pagoda (Wat Preah Keo Morokat), houses a renowned collection of Buddhist artifacts, including the Emerald Buddha. Visitors can explore the opulent Throne Hall, the Moonlight Pavilion, and the manicured gardens, gaining insights into Cambodia’s royal legacy and contemporary monarchy.

Killing Fields Memorial:

• While Cambodia’s cultural attractions evoke admiration, it is vital to acknowledge the country’s tragic history as well. The Killing Fields Memorial, located in Choeung Ek, stands as a poignant reminder of the Khmer Rouge regime’s atrocities during the late 1970s. This somber site encompasses mass graves and a memorial stupa containing the remains of victims. A visit to the memorial provides visitors with a solemn opportunity to reflect upon the past, pay tribute to the lives lost, and gain a deeper understanding of Cambodia’s journey toward healing and reconciliation.

Beaches of Sihanoukville:

• Nestled along Cambodia’s southwestern coast, the pristine beaches of Sihanoukville offer a serene retreat for tourists seeking relaxation and natural beauty. Renowned for its white sandy shores, azure waters, and vibrant marine life, this coastal paradise is an emerging tourist destination. Koh Rong and Koh Rong Samloem islands, located near Sihanoukville, boast idyllic beachfronts and provide opportunities for diving, snorkeling, and island hopping. Visitors can also indulge in local seafood cuisine and immerse themselves in the laid-back atmosphere that characterizes this coastal gem.

Cambodia’s popular tourist attractions encompass a wide array of cultural, historical, and natural wonders that captivate travelers. From the awe-inspiring ancient temples of the Angkor Archaeological Park to the poignant reminders of the country’s turbulent past at the Killing Fields Memorial, visitors are invited to explore the profound layers of Cambodia’s identity. Additionally, the Royal Palace in Phnom Penh showcases the nation’s regal heritage, while the beaches of Sihanoukville offer an oasis of tranquility along the country’s picturesque coastline. By experiencing these diverse attractions, tourists can gain a deeper appreciation of Cambodia’s rich tapestry of traditions, resilience, and natural beauty.

Most Popular Types of Tourism in Cambodia: 

There are many different types of tourism in Cambodia, here are the most common:

• Cultural Tourism: Cultural tourism serves as the cornerstone of Cambodia’s tourism industry. The world-famous Angkor Archaeological Park, home to the magnificent Angkor Wat temple complex, is a UNESCO World Heritage site and a key attraction for cultural enthusiasts. Visitors are captivated by Cambodia’s rich Khmer heritage, traditional dance performances, and local arts and crafts. Cultural tourism not only promotes national identity but also contributes to community development and cultural preservation.
• Historical Tourism: Cambodia’s turbulent history, including the Khmer Empire, the tragic era of the Khmer Rouge, and subsequent rebuilding efforts, attracts history enthusiasts seeking to understand the nation’s past. The Killing Fields of Choeung Ek and the Tuol Sleng Genocide Museum in Phnom Penh are poignant reminders of the Khmer Rouge regime and provide visitors with a solemn and educational experience. Historical tourism plays a vital role in Cambodia’s reconciliation process, preserving collective memory and fostering empathy.
• Ecotourism: The abundant natural resources and diverse ecosystems of Cambodia have nurtured the growth of ecotourism. Visitors are drawn to the country’s pristine national parks, such as Virachey and Bokor, where they can engage in activities like trekking, wildlife spotting, and exploring indigenous communities. Ecotourism initiatives prioritize environmental conservation, sustainable livelihoods for local communities, and the protection of endangered species, reinforcing Cambodia’s commitment to ecological preservation.
• Adventure Tourism: Adventure tourism in Cambodia is gaining popularity, particularly among thrill-seekers looking for adrenaline-pumping experiences. The country offers activities such as zip-lining, off-road cycling, and jungle trekking, allowing visitors to immerse themselves in Cambodia’s natural wonders while enjoying adventurous pursuits. Adventure tourism contributes to diversifying Cambodia’s tourism offerings and attracting a younger demographic of travelers seeking unique and exhilarating experiences.
• Religious Tourism: Religious tourism in Cambodia revolves around the spiritual significance of Buddhist temples and religious sites. Besides the iconic Angkor Wat, the country boasts numerous other ancient temples, such as Bayon and Preah Vihear, which attract pilgrims and spiritual seekers alike. Visitors can participate in meditation retreats, engage with Buddhist monks, and witness religious ceremonies, fostering cultural exchange and spiritual exploration.
• Beach Tourism: Cambodia’s coastline, notably the seaside town of Sihanoukville and the islands of Koh Rong and Koh Rong Samloem, draws beach enthusiasts seeking relaxation and tropical beauty. Beach tourism complements Cambodia’s cultural and historical offerings by providing visitors with a chance to unwind, enjoy water sports, and experience the laid-back coastal lifestyle. Development in this sector aims to balance tourism infrastructure expansion with environmental protection.
• Conclusion: Cambodia’s tourism industry encompasses a diverse range of popular tourism types, each contributing to the country’s economic growth, cultural preservation, and environmental sustainability. By leveraging its cultural heritage, historical significance, natural beauty, and adventurous opportunities, Cambodia continues to attract visitors from around the globe. The promotion of sustainable tourism practices is crucial to ensuring the long-term viability of Cambodia’s tourism industry, as it strives to preserve its unique attractions for future generations.

Impacts of Tourism in Cambodia

Tourism in Cambodia has emerged as a significant economic sector in the country, contributing to the country’s development and providing numerous employment opportunities. However, like any tourism destination, Cambodia experiences a range of impacts associated with the industry. This paper delves into the social, environmental, and economic consequences of tourism in Cambodia, shedding light on the overall effects on the nation.

Social Impacts of tourism in Cambodia

Positive Impacts: 

Cultural Exchange and Preservation: Tourism in Cambodia facilitates cultural exchange between visitors and local communities, fostering an appreciation for Cambodia’s rich heritage. This interaction often leads to the preservation and promotion of traditional arts, crafts, and cultural practices. 

Employment Opportunities: Tourism in Cambodia generates employment opportunities, particularly in the hospitality and service sectors, offering local residents income and improved livelihoods.

Negative Impacts: 

Social Disruption: Rapid tourism growth can cause social disruption by altering the dynamics and values of local communities. The influx of tourists may lead to changes in traditional lifestyles, increased competition for resources, and social inequalities.

Exploitation and Cultural Appropriation: Unregulated tourism in Cambodia can lead to the commodification of culture and exploitation of local communities. Cultural appropriation and misrepresentation may occur, diluting authentic cultural experiences.

Environmental Impacts of tourism in Cambodia

Positive Impacts:

Conservation Efforts: Tourism in Cambodia can provide incentives for the conservation of natural resources and protected areas. Revenue generated from ecotourism initiatives can be reinvested in environmental preservation efforts, contributing to biodiversity conservation and sustainable development.

Environmental Awareness: Visitors to Cambodia often gain a deeper understanding of environmental challenges, leading to increased awareness and support for conservation initiatives.

Negative Impacts:

Overexploitation of Resources: Uncontrolled tourism in Cambodia can strain local ecosystems, resulting in habitat destruction, deforestation, and pollution. Overconsumption of water, energy, and waste generation can degrade natural resources and disrupt fragile ecosystems. 

Carbon Footprint: The transportation and accommodation infrastructure required to support tourism in Cambodia can contribute to increased carbon emissions and climate change.

Economic Impacts of tourism in Cambodia

 Positive Impacts: 

Employment and Income Generation: Tourism in Cambodia is a significant source of employment, particularly for the local workforce. Jobs in the tourism sector provide income opportunities, alleviate poverty, and contribute to the overall economic growth of the country. 

Foreign Exchange Earnings: Tourism generates foreign exchange through visitor expenditures, which contributes to the balance of payments and helps strengthen the national economy.

Leakages and Dependency: Leakage occurs when a significant portion of tourism revenue leaves the host country, benefiting foreign investors rather than the local economy. Overdependence on tourism can make the economy vulnerable to fluctuations in the industry. 

Seasonal Employment: The tourism industry often exhibits seasonality, leading to fluctuations in employment opportunities. This can result in instability and unemployment during the off-peak season.

Tourism in Cambodia has brought about numerous social, environmental, and economic impacts, both positive and negative. While the industry has contributed to cultural preservation, employment generation, and economic growth, it has also posed challenges such as social disruption, environmental degradation, and economic vulnerabilities.

To maximize the benefits and minimize the negative consequences, sustainable tourism development strategies, including responsible tourism practices, community involvement, and environmental conservation efforts, are crucial. These measures can help ensure that tourism in Cambodia continues to play a positive role in the country’s development while preserving its unique cultural and natural heritage.

Crime and Safety in Cambodia

Cambodia has made significant progress in terms of safety and security in recent years, but tourism in Cambodia still faces some challenges related to crime. Here is an overview of crime and safety in Cambodia:

• Petty Crime: Like many tourist destinations, Cambodia experiences incidents of petty crime such as pickpocketing, bag snatching, and theft in crowded areas, markets, and tourist sites. Visitors are advised to remain cautious and take necessary precautions to safeguard their belongings.
• Scams: Some common scams in Cambodia involve overcharging for services, counterfeit goods, and fake charity organizations targeting tourists. Exercise caution when dealing with unfamiliar vendors or individuals asking for money.
• Violent Crime: While violent crime is relatively low in Cambodia, there have been instances of armed robberies, assaults, and burglaries, especially in urban areas. These crimes often occur in dimly lit streets or remote locations. It is advisable to avoid traveling alone at night and remain aware of your surroundings.
• Drug-related Crime: Cambodia has been used as a transit route for drug trafficking, primarily involving illicit substances like methamphetamine. Engaging in drug-related activities can lead to severe penalties, including lengthy prison sentences or even the death penalty.
• Terrorism: Cambodia is not considered a high-risk country for terrorism. However, global threats can affect any nation, so it’s always prudent to stay updated on travel advisories and follow any security instructions provided by local authorities.
• Traffic Safety: Road accidents are a significant concern in Cambodia due to factors like poor infrastructure, reckless driving, and inadequate enforcement of traffic laws. Exercise caution when crossing roads, consider hiring experienced drivers, and use reliable transportation services.
• Landmines: Cambodia still has areas affected by landmines and unexploded ordnance from past conflicts. It is crucial to stay on well-traveled paths and avoid venturing into unknown or unmarked areas.
• Keep your valuables secure and be vigilant in crowded places.
• Use reliable transportation services and licensed taxis.
• Respect local customs, laws, and regulations.
• Avoid excessive displays of wealth or valuable jewelry.
• Stay updated on travel advisories from your government or embassy.

FAQs about Tourism in Cambodia

Now that we know a bit more about tourism in Cambodia, lets answer some of the most common questions on this topic:

Q: Is Cambodia a safe country for tourists?

A: Yes, Cambodia is generally a safe country for tourists. However, like in any other destination, it’s important to exercise common sense and take necessary precautions, such as avoiding isolated areas at night and keeping an eye on your belongings.

Q: What is the best time to visit Cambodia?

A: The best time to visit Cambodia is during the dry season, which runs from November to April. This period offers pleasant temperatures and lower chances of rainfall, making it ideal for exploring the famous temples of Angkor and enjoying outdoor activities.

Q: Do I need a visa to visit Cambodia?

A: Yes, most visitors to Cambodia need a visa. However, citizens from certain countries are exempt from obtaining a visa or can obtain one on arrival. It’s recommended to check with the Cambodian embassy or consulate in your country for the most up-to-date visa requirements.

Q: What currency is used in Cambodia?

A: The official currency of Cambodia is the Cambodian Riel (KHR). However, US dollars are widely accepted and often preferred for larger transactions, especially in popular tourist areas. It’s advisable to carry a mix of both currencies when traveling in Cambodia.

Q: What are the must-visit destinations in Cambodia?

A: Cambodia offers a wealth of attractions, but some must-visit destinations include the ancient temples of Angkor in Siem Reap, the capital city of Phnom Penh with its rich history, and the beautiful coastal areas like Sihanoukville and Koh Rong.

Q: Is it necessary to take malaria medication when visiting Cambodia?

A: Malaria is present in certain parts of Cambodia, especially in rural areas. It’s advisable to consult with a healthcare professional or travel medicine clinic before your trip to determine if malaria medication is necessary and to take appropriate precautions against mosquito bites.

Q: What is the local cuisine like in Cambodia?

A: Cambodian cuisine is known for its blend of flavors and influences from neighboring countries. Some popular dishes include fish amok (steamed fish in coconut curry), lok lak (marinated beef stir-fry), and num banh chok (rice noodles with fish-based curry). Don’t miss trying the delicious fruit shakes and fresh tropical fruits too!

Q: Can I use credit cards in Cambodia?

A: Credit cards are widely accepted in major hotels, restaurants, and larger establishments in Cambodia, particularly in popular tourist areas. However, it’s advisable to carry some cash, especially in more remote locations and smaller establishments where cash transactions are more common.

Q: What should I wear when visiting religious sites in Cambodia?

A: When visiting religious sites, such as temples or pagodas, it’s important to dress modestly and respectfully. Both men and women should cover their shoulders and wear clothing that covers their knees. Carrying a scarf or shawl to cover up when necessary is also recommended.

Q: Are there any cultural customs or practices I should be aware of in Cambodia?

A: Yes, there are a few cultural customs to keep in mind. It’s polite to remove your shoes before entering someone’s home or a place of worship. Additionally, it’s considered respectful to avoid touching someone’s head, as it is considered sacred in Cambodian culture. Showing respect to elders and monks is also appreciated.

To Conclude: Tourism in Cambodia

Cambodia, where history whispers through ancient temples and untouched nature flourishes, reaffirms its stature as a Southeast Asian marvel. As our exploration draws to a close, spanning its archaeological wonders to verdant landscapes, the magnetic appeal of Cambodian tourism is undeniable. For those seeking a voyage anchored in cultural depth and scenic splendour, Cambodia stands as an evocative testament to the region’s rich heritage.

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Asian Tourism Sustainability pp 163–175 Cite as

Scenarios of Sustainable Tourism Development in Cambodia

• Heidi Dahles 5 , 6  
• First Online: 22 February 2022

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Part of the book series: Perspectives on Asian Tourism ((PAT))

The aim of this chapter is to provide a critical assessment of the current tourism development in Cambodia from the perspective of the ‘sustainable tourism development’ narrative. As one of Cambodia’s core industries, second only after the garment industry, tourism is a major source of income and an engine of economic growth. Despite the pivotal role of tourism in Cambodia’s economy, the dimension of sustainability is largely absent from the country’s current Tourism Development Strategic Plan. Outside the scope of this plan and largely ignored by the Cambodian government, myriad of pioneering initiatives are undertaken that have the potential to provide economic benefits to local communities. Commonly led by non-governmental organizations (NGO), such initiatives encourage the establishment of social enterprises that employ tourism as an instrument for creating sustainable livelihoods. But rarely are such enterprises developed and operated by local people. In this vein, this chapter will compare and contrast two scenarios that feature in Cambodia’s tourism development: the government-driven growth scenario and the diversification scenario led by local initiatives that evolve under the banner of sustainable tourism. It will critically assess the extent to which local people are engaged in the development and management of such initiatives in order to achieve sustainable outcomes.

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• Community participation
• Tourism-based social enterprise

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Dahles, H. (2022). Scenarios of Sustainable Tourism Development in Cambodia. In: Selvaranee Balasingam, A., Ma, Y. (eds) Asian Tourism Sustainability. Perspectives on Asian Tourism. Springer, Singapore. https://doi.org/10.1007/978-981-16-5264-6_9

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Navigating uncertainty: Cambodian tourism businesses and the pandemic

Streets crowded with tuk-tuks carrying visitors to Angkor Wat; bustling restaurants and bars; hotels and guesthouses pre-booked for the Water Festival – these scenes vanished when the COVID-19 pandemic stopped international and domestic tourists from visiting Cambodia’s sights.

Although the country’s public health situation was comparably unscathed throughout 2020 – Cambodia recorded only 331 active cases and no deaths by November 2020 – movement restrictions decreased household incomes by 30 to 60%. The situation escalated in 2021 when Cambodia went from a few cases to more than 60,000 by mid-July 2021.

Contributing over 70% of jobs and 58% of GDP in 2018, Cambodia’s micro-, small and medium-size enterprises (MSMEs) have been profoundly affected by the pandemic. The tourism industry, Cambodia’s second-largest driver of economic growth and where many MSMEs work, is especially in crisis. In 2019, tourism generated about US$4.9 billion, nearly 20% of the country’s GDP , while COVID-affected 2020 saw international tourism revenue plummet nearly 80%, to US$1.023 billion.

In 2020 and 2021, to understand the impact of COVID-19 on small businesses in the region, The Asia Foundation collaborated with local partners in carrying out multiple surveys of MSMEs in tourism, handicrafts, manufacturing and other industries across Cambodia, Lao People’s Democratic Republic, Malaysia, Myanmar, Thailand, and Timor-Leste.

In July and November 2020 and in April 2021, we also surveyed registered and unregistered businesses in Cambodia’s tourism sector. The surveys indicated that 99% had been affected by the pandemic and lockdowns, with over 50% severely affected in April 2021. As COVID-19 restrictions were extended, the situation worsened: 54% of respondents reported cash flow problems in November 2020, increasing to 83% by April 2021.

The surveys revealed a link between national COVID-19 caseloads, perceptions around business survivability, and adaptation efforts. In Cambodia, a slight majority of surveyed businesses considered COVID-19 a threat to their operations in July and November 2020, when caseloads were low, but by April 2021 more than three-quarters of businesses viewed the pandemic as a serious threat.

In July 2020, 40% of Cambodian tourism businesses reported pandemic-related layoffs, while 60% had held steady. Only 16% reported letting staff go between July and November. Instead, many had decreased employee hours or were rotating hours to keep workers. However, by April 2021, facing greater restrictions and a worsening public health crisis, 33% of Cambodian tourism businesses reported having laid off employees – twice as many as in November.

Idled tourism workers sought any short-term work opportunities to make ends meet. In Siem Reap, the gateway to Angkor Wat and other attractions, many women – who were disproportionately affected by layoffs – left the city, hoping to find jobs in the garment industry in Phnom Penh. Unfortunately, COVID-19 containment measures caused the garment factories to close.

After the first lockdown in April 2020, street vendors, taxi drivers, and tuk-tuk drivers felt less affected by the pandemic because domestic tourism and daily life continued. However, as pandemic restrictions grew and activity declined, many male tuk-tuk drivers turned to construction work – only to see worksites close in April 2021 lockdowns, leaving some with only half that month’s salary in hand.

Many Cambodian tourism MSMEs were unable to adapt their business models to digital methods. Only 8% reported doing increased business online by April 2021. Some food-related businesses, such as restaurants and street vendors in Phnom Penh, generated income through online delivery platforms. However, online is not an option for tourism businesses that cannot offer takeout food or virtual services.

Since the crisis began, Southeast Asian governments have provided a range of packages to support businesses in weathering the pandemic. However, communication about assistance and how to access it has often been inadequate.

Cambodia has provided direct support, such as cash for laid-off workers, and indirect support, such as debt restructuring. Unregistered businesses do not currently qualify for support, yet they make up a large share of employers and workers.

Although Cambodia was relatively successful in disseminating information to registered businesses compared to other countries in the region, only about 50% of MSMEs surveyed had enrolled and received needed assistance. Some said they lacked information on the programs, especially process and eligibility details, while others found the application procedures difficult to navigate.

The initial optimism of many Southeast Asian MSMEs for a 2021 economic recovery has been dampened by the latest wave of COVID-19. Despite this, Cambodia may see a quicker return to normal due to one of the highest vaccination rates in the region.

Governments must prioritise vaccine rollout, and plan for an uncertain future, in order to mitigate the economic fallout of COVID-19 containment strategies. Financial assistance for MSMEs can help negate the worst of the effects and prolong business survival. But to be effective, coverage needs to include both registered and unregistered businesses.

Beyond existing support mechanisms, governments must provide targeted and tailored assistance for women, young people, and contract and informal workers – those most adversely affected by the economic fallout. A strong and inclusive economic recovery will require more than online access and minor business adaptations – it will demand greater attention to these differential dynamics, better communication and outreach to MSMEs, and larger safety nets while scaling up vaccination.

Read the Cambodia surveys .  Read the latest GovAsia issue 1.3 about the impact of COVID-19 on MSMEs across Southeast Asia . Find individual country survey reports .

This post is part of a collaborative series with  The Asia Foundation .

This article draws on research exploring the impacts of COVID-19 on Cambodian MSMEs in the tourism sector and households in Cambodia. The research was completed in partnership with Angkor Research and Consulting, Centre for Policy Studies, and Future Forum, and was funded under a partnership between The Asia Foundation’s United States Congressional Appropriation; Department of Foreign Affairs and Trade (DFAT), Australia; and Ministry of Foreign Affairs and Trade (MFAT), New Zealand through the Ambassador Fund. The views expressed are those of the authors only.

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Men Pechet is a Program Manager in The Asia Foundation’s Cambodia Office.

Marly Augustine

Marly Augustine is a consultant with The Asia Foundation’s Governance, and Evaluation and Learning Units.

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Building a stronger and more sustainable tourism sector in Cambodia

The COVID-19 pandemic has halted the tourism industry in Cambodia. The ILO and Cambodia’s Ministry of Tourism are collaborating on entrepreneurship trainings in order to recover sustainably, improve working conditions and build back better.

On 25th to 27th of January 2021, the ILO and Cambodia’s Ministry of Tourism (MoT) organized a three-day training for facilitators on entrepreneurship in the tourism sector. The training on the ‘Methodology of Training on Entrepreneurship in the Tourism Sector’ brought together 45 participants (15 females) who learned key business and entrepreneurial skills to build back the industry. 

Due to the ongoing COVID-19 pandemic and travel restrictions, Cambodia’s tourism sector has been heavily impacted. Strengthening the capacity and conditions of SMEs in the industry is crucial for sustainable recovery as the ministry looks to restart tourism after the crisis. The training, held in Phnom Penh, taught ILO’s Community-Based Enterprise Development (C-BED) programme, an innovative business development project for aspiring entrepreneurs in underserved communities. The peer-learning programme teaches critical steps to build and develop a business, as well as strengthening decision-making, planning and finances. The activity-based learning methods of training builds on the experience of fellow participants which ensures flexibility to the evolving needs of industry and workers during difficult times.

Participants learned how to facilitate their own sessions and pass on vital entrepreneurial skills to the wider tourism community. By expanding the quantity and quality of professional entrepreneurial skills in the industry, the tourism sector can recover and become more resilient in the future.

MoT and ILO acknowledged this training was aligned with and contributed to achieving the Strategic Plan for Tourism Human Resource Development 2017-2025, especially the Strategic Plan for Restarting Tourism 2021-2025. The participants of this training programme will deliver practical skills and knowledge to tourism business operators in different provinces with using the new training method of activity-based learning. MoT and ILO will continue working together to sustainably improve entrepreneurship in the tourism sector along with the ongoing direction and action plan for future.

This activity was supported by the Decent Employment for Youth in Cambodia programme, which is a UN joint programme primarily funded by Swiss Agency for Development and Cooperation (SDC), as well as the ILO/Japan Fund for Building Social Safety Nets in Asia and the Pacific (SSN Fund).

To learn more about C-BED and activity-based learning, click here .

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Report Reveals COVID-19’s Deep Impact on Cambodian Tourism Economy

First the industry was devastated by the collapse of international visitors. Then the virus began its rapid spread.

Nearly half of tourism-related businesses in Cambodia have been forced to close their doors due to the compounding impacts of the COVID-19 pandemic, according to a new survey report published by the Asia Foundation last week.

Based on surveys conducted with around 1,000 tourism-related small and medium enterprises in various parts of the country in April 2021, the report found that 47 percent of tourism-related enterprises had ceased their operations since the beginning of the pandemic. Just 22 percent of businesses said that their operations were unchanged from before the arrival of COVID-19.

The businesses included both officially registered business – such as hotels, restaurants, travel agents, and karaoke bars – and the host of informal enterprises clustered around Cambodia’s tourism economy, which include street vendors and tuk-tuk drivers.

In full: https://thediplomat.com/2021/08/report-reveals-covid-19s-deep-impact-on-cambodian-tourism-economy/

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State of the Tourism Industry in Cambodia in 2023: Opportunities and challenges

The tourism industry in Cambodia is one of the key drivers of its economy, accounting for approximately 12% of GDP and employing over 600,000 people pre-pandemic, of which 60 per cent were women ( source ). The country is home to a wealth of cultural and natural attractions, including the world-famous Angkor Wat temple complex, as well as stunning beaches, rainforests, and national parks.

Overall, the state of the tourism industry in Cambodia in 2023 is positive. The sector is recovering from the COVID-19 pandemic and is expected to continue to grow in the coming years. In recent analysis, we find Cambodia’s economic prospects to be quite promising, with a forecasted growth rate of 5.5% in 2023 and a further uptick to 6.0% in 2024. This growth trajectory is underpinned by several key factors, as highlighted in the report released by the Asian Development Bank (ADB). ( source )

However, the tourism industry in Cambodia and its key stakeholders could do more to diversify the industry and attract higher-spending tourists. In this article, we discuss the state of the tourism industry in Cambodia, as well as the opportunities and challenges facing the sector in the post-pandemic era. For more in-market information, view our business and investment resources here or contact us today.

What is the state of the tourism industry in Cambodia in 2023?

Jyotsana Varma, ADB Country Director for Cambodia, said that despite prevailing global economic challenges, Cambodia’s economy demonstrated resilience in 2022, primarily attributed to the ongoing recovery in the tourism sector. Varma points out that Cambodia’s economic outlook is favorable, characterized by robust growth, a narrowing current account deficit, and a controlled inflation rate projected at 3.0% in 2023 and 4.0% in 2024. ( source )

The Asian Development Outlook (ADO) for April 2023 underscores the pivotal role of the tourism sector, which is expected to grow by an impressive 7.3% in 2023, followed by a slightly moderated growth rate of 6.8% in 2024. To maintain this positive trajectory, the report emphasizes Cambodia’s commitment to increasing green investments, a strategic move aimed at unlocking long-term growth potential.

In reviewing Cambodia’s economic performance in 2022, the ADO report reveals an estimated growth rate of 5.2%. This growth was primarily driven by rising external demand for Cambodian products and tourism services. The revival of demand in sectors such as food, accommodation, local trade, transport, and communications contributed significantly to this growth. Notably, international visitor arrivals saw a remarkable rebound, surging from approximately 200,000 in 2021 to about 2.3 million in 2022 as travel confidence was restored. ( source )

However, it’s essential to acknowledge certain challenges and considerations. The report anticipates a deceleration in the growth of exports, particularly in the garment, footwear, and travel goods sectors, due to subdued external demand in key markets like the United States and Europe. Nevertheless, Cambodia’s industrial sector remains on a positive trajectory, thanks to policy reforms and trade agreements. Industrial output is expected to grow by 5.8% in 2023, accelerating to 7.8% in 2024.

Meanwhile, the construction sector’s growth is expected to remain relatively sluggish, while agriculture is projected to grow by 1.1% in 2023 and 1.2% in 2024, with a particular boost from crop production for exports.

What will be the challenges for the tourism industry in Cambodia in 2023?

In terms of potential risks, factors such as weaker growth in the United States and Europe, high levels of private debt, fluctuations in tourist arrivals and foreign direct investment, elevated energy prices, and potential disruptions in agriculture due to extreme weather events will play a big role in the future of the tourism industry in Cambodia in 2023 and beyond.

How can the tourism industry in Cambodia diversify its offerings?

As Cambodia strives to diversify and expand its tourism industry beyond the iconic Angkor Wat and the constraints of a short peak season, it can draw valuable insights from the experiences of neighboring countries in Southeast Asia. Let’s explore how regional success stories, such as Indonesia, Malaysia, and Thailand, have diversified their tourism offerings and how Cambodia can apply similar strategies.

What lessons can the tourism industry in Cambodia learn from regional nations? 

Looking beyond just the ‘honeypot’ of Angkor Wat, there are a number of lessons Cambodia can learn from its neighbors in the ASEAN.

With its vast archipelago, it has successfully diversified its tourism portfolio by promoting ecotourism and celebrating its rich cultural diversity. Cambodia can follow suit by highlighting and promoting its stunning natural landscapes, such as the Cardamom Mountains, Bokor National Park, and Ream National Park, as well as its diverse culture, museums, and traditional villages. Indonesia has also encouraged public-private partnerships to develop tourism infrastructure and services. Cambodia can collaborate with private enterprises to create new attractions, accommodations, and experiences. This collaboration can be incentivized through mechanisms like tax breaks.

Malaysia first began expanding its market by targeting niche markets such as medical tourism and culinary tourism. Cambodia can identify and develop niche markets that align with its strengths, such as wellness and spa tourism, adventure tourism in the Cardamom Mountains, or culinary tours showcasing its unique cuisine. Malaysia then promoted cultural festivals, such as Thaipusam and Hari Raya Aidilfitri, to attract tourists worldwide. Cambodia can promote its own cultural festivals and events, like the Water Festival or Bon Om Touk, as cultural attractions that draw visitors outside of peak season.

Thailand has successfully rebranded itself as a year-round destination, showcasing different regions and activities throughout the year. Cambodia can follow this approach by shedding the traditional peak season label and promoting activities suited for each season, as mentioned earlier. Furthermore, investing in infrastructure, like Thailand’s extensive network of airports, can improve accessibility to different parts of Cambodia. Thailand invests heavily in marketing campaigns that highlight its diverse attractions. Cambodia can allocate resources to robust marketing efforts showcasing its year-round appeal and unique offerings, much like Thailand’s successful campaigns.

Incorporating these strategies, Cambodia can diversify its tourism industry and extend its appeal beyond Angkor Wat and the traditional peak season. By embracing its natural beauty, cultural richness, and vibrant F&B scene, Cambodia can position itself as an all-year-round travel destination, stimulate economic growth, and provide opportunities for its people. Specific initiatives, such as promoting festivals, niche markets, and infrastructure development, can be instrumental in achieving this transformation. The lessons from its regional counterparts offer valuable guidance on Cambodia’s path to unlocking its tourism potential.

How much has the tourism industry in Cambodia grown?

The sector is only second to the garment sector with the largest number of women employed. In terms of hotels and accommodation, as of 2020, a total of 1,028 hotels provide 44,428 rooms residing in 25 provinces across Cambodia.13 Another accommodation type is the guesthouse, in which 2,755 units are divided into 35,791 rooms are available for tourists.14 As the tourism industry grows and demand for accommodation spike over the year, the number of hotels and guesthouses also increase. In 1998, there were only 216 hotels and 147 guesthouses. It shows a growth rate of 386 percent and 1.740 percent for hotels and guesthouses, respectively. ( source )

How has the tourism industry in Cambodia recovered following COVID-19?

The COVID-19 pandemic had a devastating impact on Cambodia’s tourism industry, with international visitor arrivals plummeting by over 90% in 2020. However, the sector has since begun to recover, with international arrivals reaching over 2.3 million in 2022, ( source ) an increase of over 1,000% from the previous year.

The recovery of Cambodia’s tourism industry is expected to continue in 2023, with the government forecasting international arrivals to reach 4.5 million. This growth is being driven by a number of factors, including the relaxation of travel restrictions, the increasing availability of flights to Cambodia, and the government’s ongoing promotion of the country as a tourist destination.

How has the government helped with the recovery of the tourism industry in Cambodia?

The government has taken proactive steps to initiate both short and long-term strategies aimed at revitalizing the tourism industry. These measures encompass a range of initiatives designed to support tourism-related businesses and bolster the sector’s overall resilience.

Among the measures implemented are tax and fee exemptions, along with financial support and loans extended to businesses operating in the tourism sector. Furthermore, there have been concerted efforts to facilitate vaccination campaigns for employees within the tourism industry and to enhance their capacity. Infrastructure development also forms a vital component of these recovery initiatives.

For example, a policy granting monthly tax exemptions to all hotels and guesthouses in Siem Reap was introduced in February 2020. This tax exemption policy, which specifically targets tourism-related accommodations, has been extended until March 2023, providing continued relief to the sector.

Additionally, in May 2022, the government launched the Tourism Recovery Co-financing Scheme (TRCS), amounting to $150 million. This financial support is derived from a $75 million contribution by the Royal Government of Cambodia (RGC), channeled through the Small and Medium Enterprise Bank of Cambodia (SME Bank), complemented by an equal $75 million contribution from Participating Financial Institutions (PFIs). Under this scheme, enterprises in the tourism sector impacted by the COVID-19 crisis have the opportunity to apply for loans from select financial institutions partnering with SME Bank. These loans come with concessional interest rates, further aiding the sector’s recovery.

The government is also investing in tourism infrastructure, such as roads, airports, and hotels. This investment is helping to make Cambodia more accessible and attractive to tourists. For example, the government is currently constructing a new international airport in Siem Reap, the gateway to Angkor Wat ( read more )

To provide a structured framework for the revival of Cambodia’s tourism, the government has devised the Roadmap for Recovery of Cambodia Tourism during and post COVID-19. This roadmap serves as a comprehensive guide, with the overarching objectives of fortifying the tourism sector in the aftermath of the pandemic, mitigating adverse effects, and establishing Cambodia as a secure and appealing destination in the post-pandemic era.

The roadmap unfolds in three distinct phases:

• Phase 1: Crisis Management in the New Normal Phase and Planning for Recovery (2020-2021): During this initial phase, the focus was on navigating the challenges posed by the pandemic and laying the groundwork for future recovery efforts.
• Phase 2: Recovery of the Tourism Sector in Cambodia in the Post-COVID (2022-2023): This phase, currently underway, is dedicated to the active rejuvenation of Cambodia’s tourism sector, aiming for a robust and sustainable revival.
• Phase 3: Preparation for the New Future of the Tourism Sector in Cambodia (2024-2025): In this final phase, the emphasis will be on future-proofing the tourism industry, ensuring its resilience, and positioning it for long-term growth and success.

These phases collectively form a strategic roadmap that guides Cambodia’s efforts to revitalize its tourism industry, adapting to the evolving landscape shaped by the challenges of the COVID-19 pandemic.

What is the government planning for the future of the tourism industry in Cambodia?

The Ministry of Tourism (MoT) has launched a new strategic initiative titled ‘Uniting for a Collective Vision,’ with the goal of elevating Cambodia’s global standing as a premier tourism destination.

Minister of Tourism Sok Soken articulated that this strategic endeavor aims to streamline and amplify efforts toward transforming Cambodia into a globally competitive, sustainable, and inclusive tourist destination. ( source ).

Soken emphasized that adopting a shared language and mindset to plan, execute, and monitor this initiative will yield five significant advantages. 

Firstly, it fosters ‘clarity of purpose,’ ensuring comprehensive comprehension of the strategy’s essence, objectives, and action plan across all ministries. Secondly, it promotes ‘unified decision-making’ by employing a common language, leading to more efficient and effective decision-making processes grounded in a unified analytical framework.

Thirdly, it encourages ‘strengthened collaboration’ by establishing a platform for open dialogue and robust feedback, harnessing collective expertise and diverse perspectives within the ministry. Fourthly, it focuses on ‘trust-building,’ as shared language and information cultivate a sense of trust and alignment, enabling the team to rely on one another and enhance overall work performance.

Lastly, it targets the ‘synchronization of projects and activities,’ optimizing resource allocation, minimizing redundancy, and ensuring that endeavors complement each other.

How is the tourism industry in Cambodia developing in 2023?

While Cambodia’s tourism industry is recovering, there is still room for improvement. One of the key challenges facing the tourism industry in Cambodia is the need to diversify its offerings. Currently, the majority of tourists to Cambodia visit Angkor Wat and other cultural attractions. However, the country has much more to offer, including beaches, rainforests, and national parks.

The Cambodian government is working to promote these new tourism destinations, but more needs to be done to make them more accessible and attractive to tourists. For example, the government could invest in developing new infrastructure and tourist facilities in these areas.

Another challenge facing Cambodia’s tourism industry is the need to attract higher-spending tourists. Currently, the majority of tourists to Cambodia are budget travelers. However, the country has the potential to attract more high-end tourists by developing luxury resorts and spas, as well as offering more unique and experiential activities.

How can the tourism industry in Cambodia better capitalize on new tourism trends?

There are a number of ways in which the tourism industry in Cambodia could better capitalize on opportunities. Some of these are: 

• Focus on sustainable tourism. Sustainable tourism is a growing trend, with more and more travelers looking for ways to reduce their environmental impact. Cambodia can capitalize on this trend by developing sustainable tourism products and services, such as eco-lodges and community-based tourism programs.
• Promote Cambodia’s unique culture and heritage. Cambodia has a rich and unique culture and heritage, which can be a major draw for tourists. The tourism industry in Cambodia could do more to center the tourism industry in Cambodia around this culture and heritage through marketing campaigns and international events.
• Develop new and innovative tourism products and experiences. Cambodia needs to develop new and innovative tourism products and experiences to attract more visitors and keep them coming back for more. For example, there could be further development of new hiking trails in national parks, or create new cultural festivals.
• Improve tourism infrastructure and services. Cambodia could improve its tourism infrastructure and services to make it easier and more enjoyable for tourists to visit the country. For example, more investment could be channeled into developing better roads and transportation networks, and improving the quality of hotels and restaurants.
• Target specific tourist markets. Cambodia needs to target specific tourist markets with its marketing campaigns. For example, the tourism industry in Cambodia could target high-end tourists by developing luxury resorts and spas, or target eco-tourists by promoting sustainable tourism products and services.

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The Introduction of ICT for Sustainable Development of the Tourism Industry in Cambodia

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Essay: Cambodia industries – agriculture, tourism, textile

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• Subject area(s): Geography essays
• Reading time: 3 minutes
• Price: Free download
• Published: 15 October 2019*
• File format: Text
• Words: 773 (approx)
• Number of pages: 4 (approx)

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Cambodia have been an agricultural country since ancient times and have been farming rice ever since. Rice is Cambodia’s main food source and an important indicator in the economy as it contributes to about a third of the Cambodia’s economy. Cambodia’s  agriculture sector have received an annual growth of 5.3% from the year 2004 to 2012 which was one of the highest in world (World Bank, 2015). In 2013, Cambodia became the world’s fifth largest rice exporter and second biggest exporter of premium jasmine rice which reached 378,856 tons (Hunt, 2014). Cambodia’s rice export could possibly reach its full potential producing up to 3 million tons of rice with a total export value of $2.1 billion which is roughly 20% of the GDP. Royal government of Cambodia have selected 3 pronged strategy- productivity enhancement, diversification and commercial agriculture to sustain agricultural production (SNEC, 2010). Agricultural development have increase the wages of farmers in Cambodia’s country side and have decrease the poverty rate from 50% in 2007 to only 18% in 2012 (World Bank, 2015). Because Cambodia is still a developing country many of the nation’s population are farmers. But because the economy keep on growing more and more farmers were able to afford tractors and harvesters instead of using cattle to plough paddy fields. The microfinance sector saw a rise in demand for loans from small businesses mostly associated with agricultural purposes in the first quarter of 2011. Domesticate lending have totalled $473.4 million at the end of the first quarter of 2011with the number of borrowers increased up to 14.4% (Makara, 2011).

2. Tourism sector

Cambodia is a country filled with cultural and architectural history dating back to ancient times. The main tourist attraction in Cambodia are the historical heritage sites such as Angkor Wat, which is also pictured in the center of the Cambodian national flag. In 2013, the number of international tourist arrivals have increased to 4.2 million which is 17.5% higher than 2012 (MOT, 2013). Siem Reap is a province located in the northern part Cambodia is the main tourist attraction which is an important factor to the economy because 50% of the occupations in Siem Reap are related to tourism industry (Biddulph, 2010). Many businesses in the area are engaged to tourism from luxury hotels and restaurant to a budget friendly guesthouse and street vendors. Uk Someth, Apsara Authority’s deputy director have quoted that the 3 key factors to develop Siem Reap are economic development, social relations and environmental protection. But because of the rise of tourists visiting Siem reap every year, many of residents were trained to work as tour guides, carpenters, servers and many other craftsmanship’s. Despite having many tourist visiting Cambodia, there are still threats of sex tourist seeking child prostitution. US State Department’s Trafficking in Persons reported in 2014 that tourist from other parts of Asia, Europe and United States travel to Cambodia to engage in underage prostitution. Cambodian government have a law the will penalise the offender ranging from 2 to 15 years in prison for sexually exploiting children (Dombrowski, 2015).

3. Textile or garment industry

The garment industry in Cambodia is considered to be one of the three pillar of the country’s economy alongside agriculture and tourism sector. It has contributes to about 16% of Cambodia’s economy (textile world Asia, 2013). In 2014, exports of the garment and textile industry have increased a total of $5.3 billion which is higher than the previous year which contributes about $4.96 billion (GMAC, N/A). Despite the increase in the number of exports, there has been many controversies surrounding the industry over the minimum wage of garment factory workers in Cambodia over the past few years. Trade unions NGOs and Cambodian garment workers have been on strike demanding a higher minimum wages. The minimum wage was increased from $80 to $100 but it’s still not enough to the relevant living wage of $283 (Cambodia daily, 2014).  Despite the actions of the government to raise the minimum wage to $128 per month in November 2014, workers are still campaigning to raise the minimum wage to $177 (LICADHO, N/A). Many of the world renown fashion brand that have established factories in Cambodia have agreed to increase payment for the clothes that is made in Cambodia such as H&M, Zara and Primark they have also request to see cooperation with trade unions (Industriall-union, 2014) Apart from low wages, the garment industry other controversies such as poor working conditions and with low wages, factories workers are most likely to be malnutrition and too weak to perform well on the job. Human Right Watch have been complaining about the inhumane working condition and labour abuse. Senior women’s right researcher at HRW, Aruna Kashyap have requested that the government to take measures to enforce the labour law and defending workers from abuse (Kaplan, 2015).

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