Cambodia Investment Review
The tourism market in Cambodia is gradually recovering from the significant impacts of the COVID-19 pandemic. The Cambodia Hotel Association (CHA), an official body representing the hospitality industry since its establishment in 2005, has played a crucial role in this resurgence. Approved by the Ministry of Interior of the Kingdom of Cambodia, CHA’s membership has grown to 139, and it continues to actively promote and support the business interests of its members through dialogue with the Royal Government of Cambodia.
In 2023, Cambodia’s tourism market reached 81% of its pre-pandemic levels, a notable recovery, though it still faces challenges. International flight arrivals are at only 42% of pre-pandemic levels, with two-thirds of arrivals now coming via land borders. This shift indicates a significant change in the tourism dynamics, with land travel becoming more prominent.
Chinese Tourist Decline 93% Decrease From Pre-Pandemic Figures
The decline in Chinese tourists has been particularly impactful, with a dramatic 93% decrease from pre-pandemic figures. This drop has significantly affected ticket sales for Angkor Wat, a key tourist attraction. In 2023, Angkor ticket sales were only 36% of 2019 levels, reflecting the broader challenges facing the sector.
Mr. Hy Sothea, President of the Cambodia Hotel Association, commented on the current state of the tourism market: “We have seen a gradual return of tourists, but the numbers are still far from what they were before the pandemic. The decrease in Chinese tourists has had a considerable impact, but we are optimistic about the future. We are working closely with the government and other stakeholders to create a more conducive environment for tourism.”
CHA’s core activities include promoting the interests of hoteliers within Cambodia’s National Tourism Authority, coordinating events to boost the tourism industry, and addressing individual issues faced by hoteliers. The association has been instrumental in lobbying for tax exemptions and financial aid during and post-pandemic, as well as advocating for the pioneering reopening of Cambodia’s tourism sector. Their efforts also include the creation of a National Tourism Authority to better manage and promote tourism.
Despite the challenges, there are signs of positive trends. The number of international arrivals by land has increased from 220,000 in 2019 to 352,000 in 2023, indicating a shift in travel patterns. However, arrivals by air have decreased significantly, from 440,000 in 2019 to 186,000 in 2023.
Competitive and Evolving Nature Of The Regional Tourism Market
Occupancy rates and Average Daily Rates (ADR) in Cambodia have also shown fluctuations when compared to neighboring countries, highlighting the competitive and evolving nature of the regional tourism market. The CHA continues to mediate and lobby on regional issues, participating in efforts to promote tourism across Southeast Asia.
Mr. Hy Sothea further noted, “Our goal is to not only recover but also to innovate and improve the tourism experience in Cambodia. We are focusing on quality and sustainable tourism practices that will attract a diverse range of visitors. The increase in land arrivals is a positive sign, and we are working on strategies to boost air travel as well.”
The Cambodia Hotel Association remains committed to empowering the Kingdom’s hotel and tourism industries through sustained efforts and strategic collaborations. As the country navigates the post-pandemic landscape, the association’s role in representing and advocating for the hospitality sector is more critical than ever. By continuing to foster dialogue with the Royal Government and regional partners, CHA aims to create a more efficient and fertile business environment for tourism to flourish once again in Cambodia.
