Cambodia Investment Review
In a recent round-table session with Cambodian media, Mohammed Al Qassim, Emirates’ Country Manager for Cambodia, shared the airline’s optimistic outlook for both global aviation and the local Cambodian market. With a focus on passenger growth, service enhancements, and the benefits of the UAE-Cambodia Comprehensive Economic Partnership Agreement (CEPA), Al Qassim outlined key strategies for strengthening Emirates’ presence in Cambodia and supporting the country’s growing tourism and trade sectors.
Al Qassim’s key points included the airline’s positive response to its resumption of daily flights to Phnom Penh, the expected impact of the CEPA on Cambodia’s trade and investment ties with the UAE, Emirates’ sustainability initiatives, and their role in boosting Cambodia’s profile as a travel destination.
Passenger Growth and Market Outlook
Emirates’ resumption of daily flights between Phnom Penh and Dubai via Singapore in May 2024 has already been met with increasing demand. Mohammed Al Qassim expressed his satisfaction with the initial response, stating, “Since we resumed our flights in May this year, we have noticed that Phnom Penh is becoming an increasingly attractive destination for passengers across our global network. Passenger demand for our Singapore-bound leg is also growing steadily.”
He also observed that more and more airlines are adding Cambodia to their flight networks, a trend which, he said, will support the Cambodian Ministry of Tourism’s efforts to bolster the country’s tourism industry. “We are noticing more and more airlines are adding Cambodia to their flight networks, which will ultimately support the Cambodian Ministry of Tourism’s vision to propel tourism development in the country, in line with their BUILD Plus 3Ds strategy,” Al Qassim added.
Another key topic discussed was the UAE-Cambodia Comprehensive Economic Partnership Agreement (CEPA), which came into effect on January 31, 2024. Al Qassim explained that this agreement is set to create new opportunities for trade and investment between the two countries, with Emirates well-positioned to meet the needs of businesses operating between the UAE and Cambodia.
“Emirates is ideally placed to service the needs of UAE companies doing business in Cambodia,” he said. The CEPA, which aims to eliminate tariffs, reduce non-tariff trade barriers, and promote trade in goods, services, and investment, is expected to create a favorable environment for both countries to strengthen their economic ties. Al Qassim expressed confidence that the agreement would facilitate increased bilateral trade, with the airline playing a key role in supporting the movement of people and goods between the two regions.
Cambodia’s Aviation Recovery and Market Growth
In addition to expanding its services, Emirates is also focused on improving its sustainability practices. Al Qassim highlighted a recent partnership with Etihad Clean Energy Development to launch a large-scale solar energy project at the Emirates Engineering Centre in Dubai. The project, which will see the installation of 39,960 solar panels, will provide 37% of the facility’s energy needs, reducing CO2 emissions by more than 13,000 tonnes annually. Al Qassim noted, “This is a significant step forward in Emirates’ efforts to enhance energy efficiency and sustainability.”
Further enhancing its presence in Cambodia, Emirates is set to open a new retail travel shop in Phnom Penh at The Peak in 2025. Al Qassim shared that the airline’s competitive pricing on flights to Dubai, Singapore, and beyond, combined with seamless connections through Singapore, provides Cambodian travelers with cost-effective access to Emirates’ global network. The airline’s service enhancements, along with its commitment to sustainability, reflect its strategy to offer more value and a better experience to passengers.
Emirates’ outlook aligns with the broader recovery of Cambodia’s aviation sector, which saw significant growth in 2023. According to the State Secretariat of Civil Aviation (SSCA), Cambodia welcomed over five million passengers last year, a sharp increase from the previous year. “Looking at the numbers, we see that activity in the sector rose sharply in 2023 compared to 2022, reflecting the resurgence of tourists,” said SSCA Undersecretary of State Sinn Chanserey Vutha. However, despite the recovery, Cambodia’s aviation industry is still operating below pre-pandemic growth levels, with air freight growth remaining modest at just 1%.
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Al Qassim also pointed out the increasing interest in Cambodia as a travel destination. “Emirates is actively promoting Cambodia on our international website, encouraging global travelers to explore the country’s rich cultural heritage, historical sites, and natural beauty,” he noted. This effort is part of a broader strategy to support Cambodia’s tourism sector and further boost its profile on the international stage.
Expanding Connectivity and Future Prospects
Emirates operates modern Boeing 777-300ER aircraft on its flights to Phnom Penh, offering a three-class configuration that includes 8 private suites in First Class, 42 lie-flat seats in Business Class, and 304 spacious seats in Economy Class. Passengers traveling to and from Cambodia benefit from Emirates’ industry-leading service, regionally inspired cuisine, and a vast selection of in-flight entertainment, including movies, TV shows, music, and podcasts.
Looking forward, Al Qassim expressed confidence in the continued growth of both the Cambodian aviation sector and Emirates’ role in supporting this expansion. “We are excited about the future of aviation in Cambodia and the opportunities that the UAE-Cambodia CEPA will bring,” he said. As Emirates continues to enhance its services and promote Cambodia as a key global travel destination, the airline remains optimistic about its future prospects in the region.
Through its commitment to growth, sustainability, and strengthening bilateral ties between the UAE and Cambodia, Emirates is poised to play a significant role in the continued development of Cambodia’s aviation and tourism industries.
