Cambodia Investment Review
Cambodia’s tourism and hospitality sector reported its weakest business sentiment since tracking began in early 2024, with every respondent saying operating conditions became more challenging during the first half of 2026, according to EuroCham Cambodia’s latest Business Pulse survey.
The findings show the sector moving into pessimistic territory for the first time after maintaining a broadly neutral outlook over the previous two years. Tourism and hospitality was also the only industry surveyed where businesses clearly expected to implement cost-cutting measures over the next six months.
EuroCham said the results strengthened the case for urgent policy support, including more flexible visa arrangements and a dedicated digital nomad visa to stimulate visitor arrivals and spending across tourism, hospitality, retail and other service industries.
The Business Pulse H2 2026 surveyed 154 EuroCham members during July. Around 81% of respondents were business owners, board members, C-suite executives or senior managers.
The survey covered real estate and construction, tourism and hospitality, consumer products, agriculture and food processing, and services. Transport and logistics sentiment was also measured for the first time.
Tourism Businesses Call for Faster Reform
Tourism and hospitality emerged as the sector facing the most severe pressure, reflecting continued weakness in visitor demand and broader challenges affecting Cambodia’s travel industry.
EuroCham has renewed its call for changes to Cambodia’s visa policies, arguing that easier access for leisure and business travellers represents a relatively fast-acting measure that could support the sector.
The chamber’s recommendations include establishing a digital nomad visa and introducing more flexible arrangements capable of encouraging longer stays and increased visitor spending.
EuroCham said it was continuing to raise the proposals directly with government counterparts as part of efforts to restore momentum to the tourism economy.
Logistics Reforms Deliver Measurable Results
While tourism operators reported deteriorating conditions, transport and logistics companies recorded the strongest positive response to recent government reforms.
About 55% of logistics respondents said reforms had produced tangible benefits — the highest proportion among the sectors examined and more than double the overall average of 26%.
The results followed sustained public-private discussions over customs processes, port operations and administrative requirements.
Nine of the 13 forms previously required for customs procedures have been eliminated, while round-the-clock customs operations at Sihanoukville Autonomous Port were officially announced in June 2026.
EuroCham has also advocated for greater interoperability between customs platforms, the integration of government ministries into the Cambodia National Single Window, a port gate-booking system, rail incentives and improved access to the Phnom Penh-Sihanoukville Expressway.
However, logistics companies continued to report substantial administrative difficulties. Around 75% described the level of bureaucratic procedures as “too much” or “far too much,” compared with 62% across all surveyed industries.
The figures suggest that targeted reforms are delivering results, but broader administrative simplification remains necessary.
Construction Sector Secures Long-Sought Standards Agreement
Sentiment in Cambodia’s real estate and construction industry remained between neutral and slightly pessimistic during the first half of 2026.
Respondents characterised the market as structurally weak rather than undergoing a new and sudden deterioration, indicating that companies are still absorbing the effects of earlier headwinds.
Despite the subdued outlook, the sector recorded a major regulatory milestone in May when the European Committee for Standardisation and the Institute of Standards of Cambodia signed an agreement allowing Cambodia to adopt selected Eurocodes.
Eurocodes are internationally recognised standards governing the design and construction of buildings and civil engineering projects. Their national adoption is expected to be completed by June 2027.
EuroCham’s Real Estate and Construction Committee first championed the initiative more than a decade ago and continued pursuing it through discussions with successive land management ministers, technical regulators and other stakeholders, supported by the European Union Delegation to Cambodia.
Businesses See Progress but Warn of Implementation Gaps
Across the wider survey, businesses generally viewed Cambodia’s reform agenda as moving in a positive direction, although confidence had moderated compared with previous editions.
Among nearly 50 detailed written responses addressing reform, approximately one-quarter expressed clearly positive views. Digitalisation, administrative simplification and stronger government engagement with the private sector were among the most frequently recognised improvements.
Companies specifically pointed to faster customs clearance and reduced dependence on intermediaries.
However, implementation difficulties were the most commonly cited concern, raised by approximately 22 respondents. Businesses also highlighted uneven tax enforcement and rising compliance costs.
EuroCham’s red-tape research found that 59% of documents required for Qualified Investment Project applications and online business registration were requested more than once by different government institutions.
The Council for the Development of Cambodia has committed to working with EuroCham to reduce this duplication by improving data sharing across government digital platforms.
Overall, 62% of Business Pulse respondents said the level of bureaucracy confronting their companies was “too much” or “far too much.”
The findings suggest businesses are not necessarily demanding an entirely new reform agenda, but faster and more consistent implementation of measures already announced.
Survey Supports EuroCham’s Government Advocacy
Martin Brisson, Executive Director of EuroCham Cambodia, said the Business Pulse had become an important benchmark for companies seeking to compare their performance and expectations with those of industry peers.
He added that the survey helped EuroCham measure the effects of reforms it had advocated and provide evidence-based feedback to government partners.
Conducted every six months since H1 2024, the Business Pulse combines quantitative and qualitative data covering business performance, revenue expectations, investment plans, government reforms and Cambodia’s attractiveness as an investment destination.
Its findings will contribute to a policy paper for the Royal Government of Cambodia and development partners, as well as EuroCham’s White Book 2027 and Live Advocacy Compass.
