tourism industry in cambodia essay

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Recharging Cambodia’s Tourism Sector

This article was first published in Khmer Times on March 18, 2024.

The tourism sector has long been a linchpin of Cambodia’s economic growth and employment. The abundance of natural, cultural, and historical assets has helped attract millions of foreign visitors to the Kingdom each year.

The tourism sector has allowed Cambodia to earn billions of U.S. dollars in tourism revenue and generate a wide range of jobs. In 2019, the sector directly employed 630,000 people with tourism receipts peaking at USD4.9 billion, or 18.2 percent share of GDP, the highest among the ASEAN+3 economies.

Nonetheless, the pandemic disrupted Cambodia’s tourism industry on an unprecedented scale. At the height of the pandemic in 2020-21, the number of tourist arrivals contracted sharply by 82.6 percent to 0.8 million, from 6.6 million in 2019. Tourist arrivals have not recovered to pre-pandemic levels so far. The total number of foreign visitors in 2023 only reached 82.5 percent of the 2019 level, reflecting the pandemic’s scarring effect on the country’s travel and tourism industry.

Insufficient infrastructure and product offerings

Our recently published 2023 Annual Consultation Report on Cambodia highlights long-standing structural challenges in the tourism industry, which should be addressed to support the post-pandemic recovery and its further development.

Limited hard and soft infrastructure is one of the major bottlenecks holding back tourism development. In particular, insufficient long-haul and direct flights from and to major cities cause inconveniences for overseas tourists.

The country’s newly built Siem Reap Angkor International Airport and Techo Takhmao International Airport which is under construction and on track for opening next year, are expected to facilitate and drive more leisure and business travels to the country.

Furthermore, Cambodia’s labor force is not equipped with sufficient skills. The latest Travel and Tourism Development Index 2021 compiled by the World Economic Forum suggests that Cambodia is trailing behind other regional economies with regard to human resources and labor market conditions.

Other challenges weighing on Cambodia’s attractiveness include the lack of diverse tourism product offerings and insufficient tourism promotion.

Cambodia’s tourism products are highly concentrated in cultural heritage, especially revolving around the Angkor Wat, the world’s largest religious structure. However, there are very few other tourist attractions in the vicinity of the Angkor Archeological Park and a limited number of shopping centers. Souvenirs or locally manufactured products also appear to be scarce in the market.

For overseas tourists, the availability of international hotel brands is an important hygiene factor, but they remain fairly limited in Cambodia relative to other tourism powerhouses in Asia. Hence, there is still plenty of room to invest in quality hotels with better facilities.

Post-pandemic strategies for the tourism industry

What can Cambodia do to make itself a sweet tourism spot and take on a prominent role in the region?

First, a major effort should be made to diversify the tourism industry from Angkor Wat-focused tourism products and related promotional campaigns should be launched. Thanks to its rich cultural heritage and natural beauty, Cambodia should also leverage them to build more tourist attractions, focus more on community-based tourism and ecotourism, while building the necessary infrastructure.

For instance, in addition to the regular tours to the Angkor Archeological Park and cultural village, the Siem Reap province can develop an area specifically designed for tourists to embrace cultural and historical values, such as offering a homestay experience featuring the lifestyle during the Angkor era. New tourist attractions, such as the Angkor Wonder Garden as well as Angkor Wildlife and Aquarium, are steps in the right direction.

Rich in natural resources and biodiversity, Cambodia not only has many protected areas, such as national parks, wildlife sanctuaries, but it is also home to rare animal species in Asia, including the Mekong River dolphins. The Tonle Sap Lake is one of the potential ecotourism sites, yet the tourism facilities and amenities such as boat rides remain weak. In this regard, these ecotourism sites and their supportive infrastructure should be further developed.

Tourism campaigns should also be broadened by focusing not only on historical and ecotourism sites assets but also on other attractions, such as Cambodia’s beautiful coastal areas.

Second, the government should provide more financial support for critical tourism-related investment. More budget should be allocated to the development of hard and soft infrastructure for all tourism segments, including cultural/ historical, community-based tourism, and ecotourism.

Investments are necessary to improve transport infrastructure by increasing the number of long-haul and direct flights; build more entertainment locations, theme parks, and shopping centers around tourist attractions; build more accommodations with better facilities; upgrade the skills of the labor force; and encourage more micro, small and medium enterprises to produce souvenirs.

Third, harnessing digitalization is key to promoting tourism and facilitating travel. At present, Cambodia is seen as an add-on itinerary rather than a main tourist destination by most travelers. The country should place greater efforts into promoting itself as a preferred tourist destination to the global tourists through digital marketing campaigns. To revive its travel and tourism industry in the post pandemic new normal, Cambodia should adopt digital technology to modernize its immigration system; facilitate visa application; and improve ticketing and reservation for tourists.

In early 2021, the government released a roadmap aimed at turning Cambodia into a quality, safe and sustainable tourist destination as well as attracting 7 million tourists to the Kingdom by 2025. While these lofty targets may be challenging to realize in the short term, with planning, investment, and promotion, Cambodia has the potential to become a world-class tourist destination in the long term.

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The Resilient Bounce Back: Analyzing Cambodia’s Tourism Recovery (2019-2024)

The COVID-19 pandemic severely impacted global tourism, and Cambodia was no exception. However, the data from 2019 to 2023 highlights a significant recovery trend, especially in air arrivals. This analysis underscores the resilience of Cambodia’s tourism sector and provides insights into the recovery process and ongoing challenges.

Introduction

Did you know that Cambodia saw a drastic 82% drop in air arrivals from 2019 to 2022? The COVID-19 pandemic disrupted global travel, hitting the tourism industry hard. However, recent data shows a promising recovery. This article delves into the rebound of Cambodia’s tourism sector from 2019 to the first quarter of 2024, highlighting key insights and offering recommendations for continued growth.

International Arrivals Overview

2019 : Total international arrivals = 6,610,592

Arrivals by air: 4,403,995

2022 :Total international arrivals = 2,276,626

Arrivals by air: 791,603

2023 : Total international arrivals = 5,453,231

Arrivals by air: 1,866,231

2024 (Q1) : Total international arrivals = 1,582,677

Arrivals by air: 641,713

Arrivals by Air Comparison

2019 to 2022 :Total air arrivals dropped from 4,403,995 in 2019 to 791,603 in 2022, marking an 82% decrease.

2019 to 2023 :Total air arrivals increased to 1,866,231 in 2023 from 791,603 in 2022, a 135.8% increase but still 57.6% below 2019 levels.

2019 to 2024 (Q1) : Q1 air arrivals in 2024 were 641,713, reflecting a continued upward trend compared to previous years but still below pre-pandemic levels.

Key Insights

Impact of covid-19.

The data clearly reflects the severe impact of the COVID-19 pandemic on Cambodia’s tourism sector. The drastic drop in arrivals during 2020 and 2021 highlights the global travel restrictions and reduced consumer confidence. By 2022, there was some recovery, but the levels were still significantly lower than pre-pandemic figures.

Recovery in 2023

The substantial increase in 2023 suggests a strong recovery, with air arrivals more than doubling compared to 2022. However, despite this positive trend, the figures remain below pre-pandemic levels, indicating that the sector is still in a recovery phase.

Performance of Major Airports

Phnom Penh International Airport: Saw a significant increase from 609,667 arrivals in 2022 to 1,365,735 in 2023.

Siem Reap International Airport: Experienced growth from 165,180 arrivals in 2022 to 484,742 in 2023, indicating a stronger recovery in the tourism sector.

Sihanouk International Airport: Showed more modest gains, reflecting ongoing challenges in attracting tourists.

Q1 2024 Trend

Phnom Penh International Airport: Arrivals increased from 339,291 in 2023 Q1 to 431,264 in 2024 Q1

Siem Reap Angkor International Airport: Arrivals increased from 138,046 in 2023 Q1 to 206,788 in 2024 Q1

Sihanouk International Airport: Arrivals slightly decreased from 4,245 in 2023 Q1 to 3,661 in 2024 Q1

The data underscores the resilience of Cambodia’s tourism sector, rebounding strongly in 2023 and continuing to grow into the first quarter of 2024. However, the gap between the pre-pandemic year (2019) and the latest year (2024) highlights that the sector is still in recovery mode, with ongoing efforts needed to reach and surpass previous peaks. The significant increase in air arrivals in 2023 and Q1 2024 is a positive sign, indicating renewed interest and confidence in travelling to Cambodia.

The Cambodian government’s proactive measures, such as implementing rigorous health protocols and launching marketing campaigns, have played a crucial role in reviving tourist confidence. Moving forward, continued focus on enhancing safety, promoting the country’s attractions, and supporting the tourism infrastructure will be essential to achieving full recovery and sustained growth in Cambodia’s tourism sector.

Analysing Tourist Arrivals and Angkor Ticket Sales from 2019 to May 2024

The provided report by the authorities offers a detailed analysis of tourist arrivals and ticket sales for the Angkor complex from 2019 to May 2024.

The data reveals significant changes in tourism patterns, highlighting the impact of the COVID-19 pandemic and the subsequent recovery period. Here are the key points and insights from the report:

Tourist Arrivals Overview

2019 (Jan-May) : Total international arrivals = 1,117,831

Angkor ticket sales: High volume (exact numbers not specified)

2024 (Jan-May) : Total international arrivals = 472,258

Angkor ticket sales: Significant decrease compared to what is estimated in 2019

The data shows a dramatic decrease in tourist arrivals and Angkor ticket sales in 2020 and 2021, reflecting the global impact of the COVID-19 pandemic. By 2024, there is a noticeable recovery, but levels are still below pre-pandemic figures.

Recovery in 2024

There has been a substantial recovery in tourist arrivals and Angkor ticket sales in 2024 compared to 2022 and 2023, although the numbers remain significantly lower than in 2019.

Detailed Country Analysis (Jan-May 2024 vs. Jan-May 2019)

USA: 49,255 arrivals in 2024 compared to 80,425 in 2019, a decrease of 38.76%

UK: 44,607 arrivals in 2024 compared to 60,073 in 2019, a decrease of 25.75%

France: 41,819 arrivals in 2024 compared to 52,303 in 2019, a decrease of 20.04%

South Korea: 40,666 arrivals in 2024 compared to 74,587 in 2019, a decrease of 45.48%

China: 33,293 arrivals in 2024 compared to 409,479 in 2019, a decrease of 91.87%

Countries with Notable Changes

Spain: Relatively stable with only a 3.74% decrease

India: Slight decrease of 8.22%

Indonesia: Notable increase of 5.09%

Angkor Ticket Sales

Overall, there has been a 58% decrease in Angkor ticket sales from January to May 2024 compared to the same period in 2019.

Significant drops in ticket purchases by tourists from Thailand and Vietnam, with only 2% of Thai tourists and 4% of Vietnamese tourists buying tickets to Angkor in 2024 compared to 18% and 9%, respectively, in 2019.

French tourists have the highest percentage of ticket purchases to Angkor at 91%.

Important Points

Overall Ticket Sales: As of May 2024, ticket sales to Angkor are down by 58% compared to the same period in 2019.

Countries with Minimal Decline: Spain and India show less than a 10% decrease in Angkor ticket sales.

Increase in Sales: Indonesia has seen a slight increase in ticket sales.

Thai and Vietnamese Tourists: A significant decline in the percentage of these tourists purchasing Angkor tickets.

French Tourists: Maintain the highest percentage of ticket purchases for Angkor, indicating strong interest despite overall declines.

The data underscores the significant impact of the COVID-19 pandemic on Cambodia’s tourism sector, with a marked decrease in both tourist arrivals and ticket sales for the Angkor complex from 2019 to 2024. While there has been a recovery in 2024, the levels are still significantly below pre-pandemic figures.

The report highlights the need for continued efforts to promote Cambodia as a tourist destination, focusing on increasing ticket sales for key attractions like Angkor. The Cambodian government and tourism stakeholders should consider targeted marketing campaigns and incentives to attract more tourists and encourage them to visit cultural heritage sites.

Recommendations

Marketing Campaigns: Enhance international marketing efforts to promote Cambodia as a safe and attractive destination.

Incentives: Provide incentives such as discounted tickets or bundled packages to increase ticket sales for attractions like Angkor.

Focus on Key Markets: Develop specific strategies to target countries showing resilience or growth in tourist numbers, such as India and Indonesia.

Enhance Visitor Experience: Improve facilities and services at tourist sites to boost visitor satisfaction and encourage repeat visits.

Collaborate with airlines: Partner with airlines to offer attractive travel packages and promotions to boost international arrivals.

These measures can help accelerate the recovery of Cambodia’s tourism sector and bring it back to pre-pandemic levels. As the President of Thalias, I am optimistic about the future and committed to supporting initiatives that will ensure the sustainable growth of our tourism industry.

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Enabling ecotourism development in Cambodia

Maurice andres rawlins, elisabeth steinmayr, werner kornexl.

Iconic Cambodian landscapes, such as the Cardamom Mountains have a wealth of natural assets that allow for new and exciting multi-day tourism itineraries for domestic and international markets. In addition, the remoteness of Cambodia’s picturesque forested landscapes also entices the mid to high-end tourist market, who are looking to unwind and unplug.

Cambodia’s tourism industry is a key contributor to its economic growth. It provides a sizable contribution to Cambodia’s economy (21 percent of GDP in 2019) , which has been on the rise for the past ten years. The ecotourism sector was a notable part of this and, in recent years, was showing signs of even greater growth than the rest of the tourism industry.

A recent slowdown in the growth of tourism in Cambodia , however, points to a need to diversify the sector. Angkor Wat in Siem Reap has been the main attraction to Cambodia, and while the iconic temples still draw crowds, statistics show that growth in arrivals to Angkor sites is slowing. Experts suggest that the decelerated growth of tourist arrivals is due to fewer Chinese tourists visiting Siem Reap.  Instead, these tourists are increasingly drawn to Cambodia’s coastal areas. Another reason is that higher competition from neighboring countries, especially Vietnam, is drawing Chinese and South Korean tourists away from Siem Reap.

Trends of increased visitors to ecotourism sites in Cambodia indicate that ecotourism is a product that could be further developed to harness its potential, and the Cambodian government wants to capitalize on this potential. Developing tourism can also create much-needed revenues to help manage Cambodia’s extensive protected area (PA) network and protect important economic services provided by forests in the PAs.

“Invest now in ecotourism development to: DIVERSIFY Cambodia’s tourism product with ecotourism offerings; CREATE jobs and STIMULATE rural economies; and PROTECT the forest assets that underpin ecotourism” is one of the main key messages that has been formulated in a newly released World Bank advisory report on Enabling Ecotourism Development in Cambodia ; a report which has been developed to support the Royal Government of Cambodia in the sustainable development of ecotourism. One of the main tenets promoted in the report is around investing and diversifying the country’s tourism, which is part of the Bank’s broader strategy for sustainable management of the country’s natural capital and strengthening its links to the economy. 

COVID-19 is an additional reason for diversifying the country’s tourism offerings. “BUILD BACK BETTER after COVID-19 in the tourism sector by investing in ECOTOURISM” is another key message being promoted in the World Bank’s advisory report. As more people become unemployed due to the fallout of COVID-19, they are more likely to turn to illegal activities to supplement incomes, such as illegal wildlife trafficking and logging, and clearing forests for agriculture. The promotion of ecotourism development in Cambodia is, therefore, an essential element of Cambodia’s post-COVID-19 recovery strategy. It is also an essential ingredient that can pave the way towards the building back of a more resilient economy, which in turn can boost sustainable livelihoods and rural job creation for the Cambodian people.

In response to the need to diversify Cambodia’s tourism product and respond to the COVID-19 through the development of ecotourism, this new World Bank report provides five key recommendations each with strategic actions for:

• Mitigating the impacts of COVID-19 on the ecotourism industry.
• Strengthening regulatory frameworks for ecotourism.
• Strengthening key institutions and partnerships for ecotourism development.
• Strengthening ecotourism destination planning, management, and marketing.
• Enabling and supporting the private sector in tourism. 

The World Bank will support the Royal Government of Cambodia on implementing these recommendations and developing its ecotourism sector through the Cambodia Sustainable Landscape and Ecotourism Project (CSLE) . The analytical work on ecotourism will also be expanded to Cambodia’s coastal areas with funding from the PROBLUE trust fund and will inform a regional approach for ecotourism development with funding from the PROGREEN trust fund .

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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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Tourism in Cambodia: Opportunities and Challenges

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During the 1960s, Cambodia was one of the foremost tourism destinations in Southeast Asia. Attracted primarily by the culture of Phnom Penh and the temples of Angkor, between 50,000 and 70,000 tourists visited the country each year (Hall and Ringer 2000), a significant number in those early days of mass international travel. However, as a result of the political turmoil of the following two decades, Cambodia became off-limits to international tourists and it was only in the early 1990s that it regained its place on the international tourism map. Following the Paris Peace Accords, some 22,000 people visited Cambodia in 1991, more than doubling to around 50,000 the following year although, according to Chheang (2008a, 291), the majority were UN personnel. In 1993, the year that international tourist arrivals were first officially recorded, the country adopted an open-door policy to attract foreign investment in tourism and since then, the sector has grown rapidly (Grihault 2011). Some 118,000 tourists visited Cambodia in 1993, a number that increased to almost half a million by 2000 and subsequently grew remarkably to more than 4.5 million by 2014 (MoT 2015). The economic contribution of tourism has increased commensurately. In 1996, tourism receipts amounted to US$118 million; by 2014, the figure had risen to US$2,736 million (MoT 2015).

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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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Doubling Down on Tourism Today will Constrain Cambodia’s Policy Options Tomorrow

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COVID-19 has given Cambodia an opportunity to rethink its reliance on tourism. Will the government take it?

Anyone following the news out of Cambodia is likely to have encountered two conflicting sentiments regarding the current COVID-19 situation.

On the one hand, in late July, the spokesperson for the Ministry of Health and the chairwoman of the COVID-19 Vaccination Committee proclaimed that the country is at a critical  “redline,” an assessment which led to government-mandated lockdowns in Siem Reap starting in the middle of September.

On the other hand, thanks to swift vaccination progress, the country’s tourism leaders are already preparing for a potential re-opening of Siem Reap to vaccinated tourists in the last quarter of 2021, with the government hinting at the possibility of reducing quarantine measures for incoming visitors.

Although only about 82,000 foreign tourists were reported to have visited Cambodia in the first four months of 2021, the government is already making arrangements with foreign partners, including requesting that the Philippines encourage more tourists to visit Cambodia and making plans with Singapore to organize a tourism fair . More importantly, the Ministry of Tourism has set up an online tourism vocational school registration system to encourage participation in its training program for workers in the tourism sector.

Local authorities have also described tourism as an indispensable path towards economic recovery in the post-pandemic world. According to the Roadmap for Recovery of Cambodian Tourism During and Post COVID-19 , the government envisions a reformed tourism sector that emphasizes quality, safety, and sustainability, while also planning to bring back 7 million international tourists each year by 2025 and 11 million domestic tourists by 2023.

One thing that this health crisis should have revealed to the government, however, are the ways in which an economy which is over-reliant on travel and tourism is unsustainable and susceptible to shocks. More importantly, this development approach defies experts’ calls for economic diversification into higher value-added sectors. Without deliberate consideration, policies undertaken during the COVID-19 pandemic might lock Cambodia in a loop of perpetual underdevelopment and over-reliance on tourism.

Therefore, before doubling down further on the tourism sector as a COVID-19 recovery strategy, the Kingdom must understand how its decisions will impact the range of future policy options.

Path Dependency and Tourism

The path dependency theory argues that history matters and that decisions made in the past can affect those possible in the future. This phenomenon is caused by “lock-ins” or self-reinforcing processes that continuously force an actor to make the same decision or oppose changes despite having other viable options.

A nation can be locked onto a fixed development path because of its dependence on the existing structures: namely, assets, competencies, institutional patterns, and power relations. As a result, the cost of switching to a different path is so high that it is not even worth considering. For instance, if investment is poured into tourism-specific infrastructure or projects such as tourist attractions, the local community and authorities will have less room to diversify their economic activities out of the tourism sector unless they have access to a large pool of public or private funds.

On the other hand, lock-ins can also be reinforced by the increasing returns generated from the chosen path. For example, the profits generated from pro-tourism policies are more likely to keep businesses doubling down on their investment in the sector and limiting incentives to invest in other productive or higher value-added industries.

Nonetheless, destinations can still break free from existing lock-ins and create new paths toward a more sustainable development trajectory. This would require local authorities and major actors in the tourism and non-tourism industries to choose the right path during a “ critical juncture ,” a situation of extreme challenge and uncertainty in which policies and institutional reforms may result in lasting changes.

The Case of Central Australia

Central Australia is an interesting case study that Cambodia should investigate, particularly related to this idea of “critical juncture.” Central Australia is a sizable and sparsely populated desert region that experienced a tourism boom from the 1980s. It became the center for large-scale tourism projects with limited diversification into other economic activities and products, making it substantially vulnerable to the boom-and-bust cycle. Foreseeably, the region was significantly impacted by the global financial crisis in 2008 and continued to experience a significant slump until 2012.

What the Australian government failed to grasp was the fact that the 2008 financial crisis was one of the aforementioned critical junctures. Consequently, their inaction in diagnosing tourism policies in Central Australia and initiating reforms prevented the region from achieving sustainable development.

Rather than perceiving the consequences as a sign of structural weaknesses, the Australian authorities pointed almost exclusively to the external shocks as the cause of the extreme downturn. Hence, the government persistently poured more investment into maintaining the status quo through extensive marketing campaigns and infrastructure upgrades.

Local authorities overlooked the entrenched culture of overdependence on the government and external investors for capital, the lack of entrepreneurial capabilities, and the limited collaboration among key industry players on the creation of new products and services. As a result, Central Australia was trapped in a perpetual pattern of chasing the boom while having to bear the increasing costs of replacing decaying infrastructure, seeking new markets, and attracting attention from the central government.

Central Australia missed the opportunity to reassess its development path and mobilize support for a more productive trajectory during the global financial crisis. Cambodia should learn from an example like this and must not brush off the COVID-19 pandemic as just a random catastrophe, but consider it as a critical juncture for meaningful changes and reforms.

COVID-19 as a Critical Juncture

Essentially, the COVID-19 pandemic can be regarded as a critical juncture. While the consequences of the virus are widely known, many disregard the possibilities it presents for rethinking existing systems for a more sustainable and resilient future. This platitude about how every crisis presents great opportunities is often overlooked, despite the educational values of such experiences.

A country’s inability to mitigate the consequences of crises are symptoms of institutional shortcomings that are themselves defects of the established system. And actors engaging in the system generally have incentives to swiftly act because disaster recovery necessitates hard choices, strengthening political will and consensus for change.

This health crisis has catalyzed efforts to reassess the country’s healthcare system and the pandemic preparedness programs. It has spurred discussions on expanding social protection coverage, attracting investment for 21st-century classrooms, and encouraging digital adoption within the government and businesses.

So why miss the opportunity to reimagine the tourism sector and propose solutions for economic diversification for the post-pandemic world?

Here is what the pre-pandemic status quo looked like: Cambodia’s spectacular cultural and natural heritages became attractive destinations for both western and eastern travelers. As a result, investments are predominantly pulled into established destinations, such as Siem Reap and Sihanoukville. Nonetheless, this lack of diversification and the limited number of tourism destinations and products has led to the slowing growth of tourists visiting the Kingdom and a decline in daily spending.

More importantly, the surge in the number of Chinese visitors, which accounted for over 35 percent of all international arrivals in 2019, led local authorities to implement the “China-Ready” strategy that aims to attract 2 million tourists from China annually. This decision, in turn, pushed the Kingdom to create more tourism products catered towards the Chinese market . While it is uncertain what kind of experience is deemed suited for the Chinese travelers, recent development trends point to the dubious gambling industry as the number of casinos jumped by 53 percent in 2018.

As I have previously outlined , before the pandemic, Cambodia’s tourism was already facing several issues, including the notable economic leakages, the potential undermining of culture, and environmental impacts. However, I have also argued that there are other tourism approaches that Cambodia can investigate, such as Bhutan’s model of valuing quality over quantity.

Taking into consideration the Kingdom’s post-pandemic tourism plan, which generally accentuates the need to attract more tourists, I cannot help but worry that the government is overlooking the opportunity to use this critical juncture to reevaluate the current tourism model.

If the status quo is maintained, it could potentially exacerbate the nation’s dependency on the tourism sector and the Chinese market, contradicting the national priority of economic and market diversification. More importantly, it can also promote the emergence of contentious industries and mass tourism initiatives at the costs of social order and the environment.

Having a comprehensive post-pandemic recovery plan is essential, but what is most crucial for countries during this critical juncture is to choose the right development path. Fortunately, the past has already provided invaluable knowledge about the existing system that can inform this decision – if only the relevant authorities look back before taking their next step forward.

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Home — Essay Samples — Geography & Travel — Tourism — The Positive and Negative Impacts of Tourism on Cambodia

The Positive and Negative Impacts of Tourism on Cambodia

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Published: Jul 10, 2019

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Positive effects of tourism in cambodia, negative effects of tourism in cambodia, positive and negative impacts of tourism on the environment of cambodia, works cited.

• Conservation Efforts: Revenue generated from tourism has been channeled into conservation initiatives aimed at protecting Cambodia's natural and cultural heritage sites. This includes funding for the preservation of historical temples like Angkor Wat and the conservation of biodiversity in national parks.
• Reforestation: In some regions, tourism-driven conservation projects have led to reforestation efforts, helping to restore damaged ecosystems and combat deforestation.
• Deforestation: The growth of tourism has contributed to deforestation in Cambodia, particularly in areas near popular destinations like Siem Reap. Forests are cleared to make way for infrastructure development, such as hotels and roads, resulting in habitat loss for numerous plant and animal species.
• Pollution: Increased tourist activities have led to higher levels of pollution, including water pollution from sewage and waste disposal. This pollution can harm aquatic ecosystems and water quality, affecting both wildlife and local communities.
• Habitat Destruction: Construction of tourist facilities, such as resorts and golf courses, often involves the destruction of natural habitats. This can disrupt the ecosystems that support Cambodia's unique and diverse wildlife.
• Overuse of Natural Resources: The demand for water, energy, and other resources in tourist areas can strain local supplies, leading to over-extraction of resources and exacerbating scarcity in already vulnerable regions.
• Soil Erosion: Activities related to tourism, such as hiking and off-road vehicle tours, can contribute to soil erosion, further degrading natural landscapes.
• Wildlife Exploitation: The demand for wildlife-based tourism activities, such as elephant rides and visits to wildlife sanctuaries, can contribute to the illegal wildlife trade and the mistreatment and endangerment of animals.
• Nhean, P. (2013). 'The Kingdom of Wonder': Cambodia's Destination Branding. In R. Raj & G. Musa (Eds.), Tourism Development in Asia (pp. 139-153). Channel View Publications.
• Royal Government of Cambodia (RGC). (2012). Cambodia Tourism Marketing Strategy 2012-2020. Ministry of Tourism, Cambodia.
• World Travel and Tourism Council. (2016). Travel & Tourism Economic Impact 2016 Cambodia. World Travel and Tourism Council.
• Meng, K., & Nhean, P. (2018). Chinese Tourists Driving Southeast Asia Airport Boom. Nikkei Asian Review.
• Ma, A., & Cripps, K. (2017). Angkor Wat: Tourists behaving badly at Cambodia's sacred site. CNN Travel.
• Fifield, A. (2018). Cambodia’s Chinese tourism boom sparks concerns over impact. Financial Times.
• World Bank. (2019). Cambodia: Maximizing the Benefits of Tourism for Inclusive Development. World Bank Group.

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Positive Effects Of Global Tourism

Global tourism has been one of the most dynamic and growing economic sectors during the last 50 years. With a proved powerful capacity of resilience against economic crisis and officially supported positive economic predictions of continuing growing for the first half of the 21st century (UN-WTO, 2013) (Figure 4), this old but healthy globalized market has produced positive and negative effects over the developing territories where it has landed. In the specific case of Ecuador, the last decade has been characterized by an intensive and strong public investment in tourist infrastructure and international marketing in order to attract something of the flows from this huge global market. Especially, it is positively accepted in developing countries

Advantages And Disadvantages Of Domestic Tourism In Malaysia

Domestic tourism is tourism involving residents of one country traveling only within that country (Domestic tourism, 2015). In 1960s, tourism industry in Malaysia has been traditionally concentrated and promoted towards international markets. Nowadays, the tourism sector has grown rapidly and has been ranked the second largest foreign income earners. A domestic tourist can be defined as "any person residing in Malaysia regardless of his/her nationality who travels to a place at least 40 kilometres away (one way) from his/her usual place of residence for at least one night or less than one night for any reason other than following an activity remunerated at the place visited".

Positive Economic Impacts Of Tourism

According to McNeely (1998) and Mbaiwa (2003), tourism is known as the largest growing industry especially in the area of job creation, improve quality of life to host community, improving local economy and many more (Mochechela, 2010).This is because tourism industry is one of the largest industries where host resident can get the economic benefits where both skilled and unskilled people can be employed. Economic impact usually can directly bring benefits to communities. However, even though the economic benefits are popular with the tourism impact, the negative side still need to be taken with caution. In addition, tourism industry can make a positive economic contribution such as increase income of local people, increasing foreign exchange

Global Tourism Essay

Indonesia is known for thousands of islands, its natural beauty, its cultural uniqueness, and it lies along the equator. No wonder if Indonesia is always becoming a special tourist destination from developed countries. The development of the tourism industry certainly provides a positive aspect to the country 's economy through job creation and increased revenues from foreign exchange. However, because the model of tourism development that are "closed" to cause their party from the host that cannot be involved in the tourism sector only for reasons of political, geographical, social, cultural, or business.

Social, Social And Economic Benefits Of Tourism

Benefits of Tourism Tourism is an important activity that people has undertaken for a very long time in the most countries around the world. In recent time it has been recognized as an important social and economic phenomenon. As well as its direct effect it has indirect effects both on the society and at the individual level. . The interaction between tourists and poor communities can provide a number of intangible and practical benefits. These can range from increased awareness of cultural, environmental, and economic issues and values, on both sides, to mutual benefits from improved local investment in infrastructure.

Write An Essay On The Benefits Of Tourism To A Country

Over the past few decades, tourism has experienced the sustained growth and deepening ‎diversification to become one of the fastest growing economic sectors over the world. Nowadays, the business volume of tourism can be said to be equals to or even surpasses the business volume of food products, automobiles or oil exports. Tourism plays an important role in almost every country due to it has a greater impact on the development of country economy. The main benefits of tourism are creating extra money for national income and creating more career opportunities for locals. One of the easiest benefits to determine is the career opportunities that the tourism brings.

The Global Tourism Industry

The tourism industry contributes significantly to the worldwide economy, employing 200 million people and representing 10% of global GDP (Socci, 2016). International tourism is defined as a person or group of people temporarily visiting a foreign country and the activities they partake in while abroad (Filiposki, 2014). Socci expands on the definition by identifying ten primary sub-industries that combine to form a more aptly named tourism “cluster.” These sub-industries include: accommodation services; hotel and restaurant; food and beverage; land transport; water transport; rail transport; air transport; supporting transportation services; recreational, cultural, and sporting services; and retail and country-specific tourism (2016). In 2014, foreign tourism generated $1409 billion, which was 30% of global service exports (Filiposki, 2014).

Sustainable Tourism Development Essay

In this report sustainable tourism development will be explained and analyzed in relation to the essential features that influence a country’s tourism development. Sustainable tourism has to deal with social, environment and economic impacts. However tourism except from positive impacts has also some negative impacts regarding the economy, environment and social aspects. Sustainable development is also about developing a better life for all people that will be as practicable in the future as it was at present.

The Importance Of Tourism In The Tourism Industry

The main concept is to provide number of quality services to the tourists, who planned their trip through a travel and tourism firm. There are number of services that tourists are eligible and bound to receive as they had spend money while travelling from one place to another. Tourism is the industry in which passenger contacts their tour operator to get what he/she dreams of for their holiday. Travelers at the end of the day go on a vacation to relax and to have a good time. Every airline, railway company or travel agency emphasize a strong customer service as to those who get service are more likely to return for their future travel arrangements.

Importance Of Tourism Promotion

The field of tourism promotion deals with marketing tourism services using various promotional tools. A tourism degree program combines the marketing disciplines, business and personnel management pertaining to managing tourism businesses. Some degree programs and specialisations offer training specifically in tourism promotions. Tourism is travel for business or leisure purposes. A tourist is a person who travels outside his city, state or country for business or leisure purposes for more than 24 hours and not more than one consecutive year.

What Is The Importance Of Rural Development

Rural development is as important as urban development. Alleviating the hardships of the rural people is fundamental to rural development. Efforts at developing the rural areas are aimed at creating industries and employment opportunities. Any initiative towards this end would be welcomed with open arms in Nepal. This would also reduce the population density in the cities.

More about Disadvantages And Disadvantages Of Tourism In Cambodia

Related topics.

• World Tourism Organization
• Cultural tourism

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