by

Lodging Industry in Cambodia

Travel and Tourism in Cambodia: A Macro View

Although wedged between Thailand, Laos and Vietnam—competitive emerging market destinations, Cambodia possesses exceptional tourism assets and unparalleled opportunities, led by its World Heritage gem in Siem Reap—Angkor Wat .  Fueled by non-trivial cash flows from Foreign Direct Investment along with hefty Government initiatives to increase capability, tourism investment and growth of visitors has significantly increased in Cambodia since the mid-1990s after the re-instatement of King Sihanouk.  Due to limited but ongoing infrastructure improvements, there are currently three major tourist destinations in Cambodia: Phnom Penh (Capital City), Siem Reap (Cultural Heritage) and Sihanoukville (Beach).  As can be seen in the graph below,  Siem Reap contains the largest capacity for accomodation:

Asia-Pacific Hotel Industry – October 2010 – Supply Structure
Figure 8: Cambodia’s accommodation capacity, by region, 2009
Destination Hotels Hotel rooms Guesthouses Guesthouse rooms
Phnom Penh

159

6,920

355

5,648
Siem Reap

117

8,675

225

2,929
Coastal area

59

2,206

169

2,463
Ecotourism area

22

781

61

749
Other

73

2,770

341

2,787
Total

430

21,352

1,151

14,576
Source: Cambodian Ministry of Tourism

Of all international visitors to Cambodia, ~50% visit the province of Siem Reap, making it the top single destination of the country.  Since 2003 (when official tracking of tourist figures began), the number of arrivals to Siem Reap has grown faster than the other two destinations, resulting in an increase of market share for Siem Reap:

2005 2006 % of total 2006 2007 (e) % of total 2007 % change 2005-07
Phnom Penh and other destinations 744,806 843,531 49.6 855,147 42.4 14.8
Siem Reap Province 676,809 856,510 50.4 1,160,082 57.6 71.4
Total 1,421,615 1,700,041 100.0 2,015,229 100.0 41.8

However, the average length of stay in Siem Reap, as of 2007, is reported to be only 1.7 nights.  Since 2003, the primary source market to Cambodia has been South Korea (particularly Kim, Youngsun), with significant increased arrival trends from Japan, US, Taiwan and China.

The Loding Industry in Siem Reap

The Government’s “open sky” policy enacted in 200 has enabled for an increase in direct flights to Siem Reap, which has helped drive up Lodging requests in the province.  Also, new attractions such as Angkor National Museum, the Johnnie Walker Camodia Golf Open and a Half Marathon have assisted the uptick in demand.  Between 2006-2007, arrivals into Siem Reap increased at a rate of 51%:

FIGURE 6: Distribution of international visitor arrivals, 2005-07*

2005 2006 % of total 2006 2007 (e) % of total 2007
Siem Reap Province 676,809 856,510 50.4 1,160,082 57.6
Total 1,421,615 1,700,041 100.0 2,015,229 100.0

Siem Reap has seen a transformation in supply over the last ten years – from a town providing simple guesthouses to a destination with a wide choice of accommodation, including upscale offerings.   While guesthouses are still more numerous in terms of raw numbers, Hotels now provide the overwhelming majority of lodging in Siem Reap.   As can be seen in below chart, Hotel Rooms account for ~75% of all rooms in the market.   Compared to just four hotels in 1969, supply grew to 86 hotels in 2007 and development continues to push forward.  Excluding guesthouses as of 2010, there are 117 hotels in Siem Reap—each averaging 74 rooms for a total Room Supply of 8,675 beds.

Asia – Pacific Hotel Industry – October 2010 – Supply Structure

Figure  8: Cambodias accommodation capacity by region 2009

Destination               Hotels           Hotel Rooms           Guesthouses      Guesthouse rooms

Siem Reap                  117                  8,675                        225                          2,929

Occupancy levels, appearing to be driven by seasonality, show tremendous fluctuation and wide spreads.  Occupancy rates range from as low as 20% in the low season to 100% in the high season.  The top six hotels in Siem Reap had, on average, a 45% occupancy level, with an average rate of US$117 in 2006.  Similarly, Rate shows inconsistency and wide price spreads, ranging from $2 up to over $200/night.

The market currently contains some well-known, branded luxury properties including Amansara (Aman Resorts), Sofitel Phokeethra Royal Angkor and Raffles Grand Hotel d’Angkor, which highlight a possible maturation stage in the market.  This stage can be characterized by larger, branded facilities entering the market, owing to an increased confidence in development opportunity and sustainability.  Of great importance, Marriott has officially entered the Siem Reap lodging market with a 218-room Courtyard slated to open this year.

Conclusion

Siem Reap is the most significant driver of tourism in Cambodia and is rapidly growing.  Since the Government wants to “distribute” these visitors to other areas of the Republic in an effort to “share the wealth” in foreign currency brought in by tourists to ultimately grow per capita GDP, there is some risk that infrastructure issues initiated by the public sector could have a disproportionate effect on Siem Reap.  There is also a real issue that in the coming years, because of the hotel boom in the 2000s, Siem Reap could be reaching the point of over-capacity.   However, the increased development and competition–particularly in the luxury sector, could assist the market in terms of quality delivered—by eliminating the weak.

I believe the longer term effectiveness of the Lodging Market will be driven by a continued aggressive, well-coordinated effort between development investment and tourism marketing, both in the private and public sectors.  But ultimately, the burden of sustaining the Industry lies on the shoulders of the Khmer people to effectively acquire the knowledge imported via Foreign Direct Investment by aggressive Private Equity Firms and established Hotel Operators.

All of these signs point toward increasing capacity and growth within this crucial sector in one of the world’s poorest economies, which could help in the Government’s much needed plan to drive up per capita GDP in the Republic.

Albeit ushered, the Cambodian nation was able to successfully close a chapter in history by successfully bringing legal action to some of the remaining, more brutal remnants of the Khmer Rouge in 2010.  Although the recent events in the Middle East show us the unpredictable, inherent risk in investment, it appears that the Tourism and Lodging Markets in Siem Reap are positively riding the wave of “efficiently moving forward” from a tumultuous past.

– Mark Eckenroth – mre47@cornell.edu

1,812 thoughts on “Lodging Industry in Cambodia”

  2. I’m some sort of intended for the vast majority of content pieces, When i certainly savored, We would definitely desire far more facts about that, provided that it truly is very good., Well done for placing. lingerie

  3. “””Every time I sit down to start my Assignment, I get horrible dreams.
    I wanted help, and Assignment Help Center came to the rescue.
    I simply can’t thank them enough for supporting me with their education.”””

  6. You sure do understand what youre talking about. Man, this website is just great! I cant wait to learn much more of what youve have got to say. Im really happy that we discovered this after i did because I was really beginning to become bored with the whole blogging scene. Youve turned me around, man! UFABETแทงบอลบนมือถือ

  8. Thanks for such a valuable post. I am waiting for your next post, I have enjoyed a lot reading this post keep it up. 토토

  14. Photographs found on your web site regardless of whether generating fascination speedily a bit of volume submits. Pleasing way of long lasting potential, I shall be book-marking back then turn into your current floor conclude comes up ” way up “. แทงบอลUFABET

  15. Situs judi online terbaik Perdana138 dijamin teraman dan terpercaya dan mendatangkan kepuasan tertentu untuk beberapa penggemarnya untuk peluang menang besar.
    kini hadir dengan sistem slot paling canggih untuk mempermudah para pemain mendapatkan kemenangan. Sudah terbukti sangat mudah mencapai kemenangan slot hanya dengan memainkan satu user ID saja, Anda bisa melakukan deposit minimal 25.000 Rupiah saja dan langsung mainkan semua permainan slot terlengkap di situs resmi Perdana138.

  16. Hi this is somewhat of off topic but I was wondering if blogs use WYSIWYG editors or if you have to manually code with HTML. I’m starting a blog soon but have no coding skills so I wanted to get advice from someone with experience. Any help would be greatly appreciated. 메이저사이트

  18. بهترین شرکت دیجیتال مارکتینگ اصفهان شرکتی هست که بتواند بهترین افرادش را در تمام شاخه های دیجیتال مارکتینگ برای پروژه شما انتخاب کند. .همانطور که گفتیم ابزارهای مختلفی برای دیجیتال مارکتینگ وجود دارد که معمولا تیمی انجام میشود و نفرات آن تیم باید متخصص در هر کدام از این ابزارها باش و در کنار مدیر پروژه قوی همه این اجراها و گزارشات ابزارهای مختلف را کنار هم مثل پازل قرار دهند تا بتوانند نتیجه کامل و مفیدی از ابزارها در پروژه بدست بیاورند

    https://raysan.ir/%d9%be%d9%86%d9%84-%d8%a7%d8%b1%d8%b3%d8%a7%d9%84-%d8%a7%d8%b3-%d8%a7%d9%85-%d8%a7%d8%b3/%d8%af%d8%b3%d8%aa%da%af%d8%a7%d9%87-%d8%b0%d8%ae%db%8c%d8%b1%d9%87-%d8%b4%d9%85%d8%a7%d8%b1%d9%87-%d9%85%d9%88%d8%a8%d8%a7%db%8c%d9%84-%d9%85%d8%b4%d8%aa%d8%b1%db%8c%d8%a7%d9%86/

  19. اگر شما بخواهید تبلیغات هدفمند دیگری به بانک مشاغل انجام دهید باید مبالغ خیلی سنگین پرداخت کنید تا بتوانید صدای خود را به مشتری‌های واقعی یا افرادی که بالفعل هستند برسانید تا بتوانید آنها را با شغل خودتان آشنا کنید و مرحله‌ به‌ مرحله پیش بروید تا این افراد تبدیل به بالقوه شوند و تبدیل به خریدار واقعی و میدانید که هزینه بسیار سنگینی دارد ولی شما با بانک اطلاعات شماره موبایل اصناف مشاغل صنف خودتان، راحت چند مرحله را جلو هستید و به مرحله آخر یعنی معرفی محصول خودتان میپردازید.

    https://senfonline.ir/

  20. هنگام خریداری و تهیه ی بانک اطلاعات مشاغل مورد نظر خود از هر سایتی باید به این نکته ی مهم توجه کنید که آیا اطلاعاتی که در اختیارتان قرار می دهند جامع و صحیح می باشد یا خیر که در غیر این صورت بیهوده زمان و هزینه ی خودتان را روی این موضوع قرار داده اید . بنابراین پیش از اینکه بانک اطلاعات مشاغل و بانک اطلاعاتی موبایل مشاغل مورد نظرتان را از هر کدام از سایت های موجود سفارش دهید ،

    https://iran-asnaf.ir

  21. بیش از ۱۵ سال فعالیت در زمینه آی تی، برنامه نویسی با زبان های C # ، ASP.NET ، PHP، بیشتر پروژه های اجرایی در اصفهان بوده و در حال حاضر پروژه های طراحی سایت در اصفهان ، سئو در اصفهان را در حال اجرا می باشم .

  22. بیش از ۱۵ سال فعالیت در زمینه آی تی، برنامه نویسی با زبان های C # ، ASP.NET ، PHP، بیشتر پروژه های اجرایی در اصفهان بوده و در حال حاضر پروژه های طراحی سایت در اصفهان ، سئو در اصفهان را در حال اجرا می باشم .

    https://vahidboroushak.ir/seo-in-esfahan/

  29. You may rent a great 12 passenger van from Atlanta’s Best Van Rental for use in a variety of situations, including road vacations, business outings, sporting events, deliveries, moving bags, and more.sexy bra

  31. Greetings! The advise in this post is quite useful! The biggest changes will be brought about by the smallest adjustments. Many thanks for sharing!|lingerie

  37. It has been there for at least 7 years, and possibly longer, since we purchased the house. It worked one day and didn’t the next. It looks that the issue is with the device itself, not the remote.beach coverups lebanon

  50. Hiya, I’m really glad I’ve found this information. Nowadays bloggers publish only about gossips and net and this is actually frustrating. A good web site with interesting content, that’s what I need. Thanks for keeping this web-site, I will be visiting it. Do you do newsletters? Can’t find it. สูตรแทงบอลเว็บUFABET

Leave a Reply

Your email address will not be published. Required fields are marked *