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”

  6. جهت خرید اینترنتی بلیط هواپیما کافیست مبدا و مقصد خود را مشخص کرده و با مقایسه ایرلاین ها و قیمت ها، مناسب ترین گزینه را از بین پروازهای داخلی و خارجی را انتخاب نمایید.

  10. There are a couple of fascinating points with time in the following paragraphs but I do not know if all of them center to heart. There’s some validity but I most certainly will take hold opinion until I check into it further. Very good post , thanks and then we want a lot more! Included with FeedBurner at the same time salingsilang

  14. One way to trick draftkings vpn into thinking you are in a different location is to use a VPN. VPNs are programs that allow you to change your IP address. It is important to choose a VPN that has a high-quality server and offers fast speeds. These programs are also inexpensive and easy to use.

  15. Rapidly this website may irrefutably end up being well-known amongst just about all running a blog individuals, due to the diligent content articles or even evaluations. taktik88

  16. If you are looking Chennai Independent Escorts then you are at the best place. We provide 24/7 VIP Escorts service to our clients. We have some of the top and beautiful Independent Escort girls in the city who are ready to give you a memorable experience.

  17. واحد سالنامه برگ ارائه دهنده انواع مدل های سررسید 1403، سالنامه 1403

     این واحد به جهت ارائه محصولاتی باکیفیت و خاص و در عین حال با قیمت مناسب، توانسته در طی 15 سال فعالیت خود، بهترین بازخورد را از سوی مشتریان داشته باشد. از دیگر ویژگی های محصولات سالنامه برگ می توان به تنوع زیاد اشاره کرد و از این رو محصولات این مجموعه، طیف گسترده ای از سلایق مشتریان را در بر می گیرد. جهت سفارش و خرید سررسید ١٤٠٣ ، سالنامه 1403 و تقویم رومیزی 1403 هم اکنون با کارشناسان ما تماس حاصل فرمایید

  19. excellent submit, very informative. I’m wondering why the other experts of this sector do not notice this. You must proceed your writing. I am confident, you’ve a huge readers’ base already!메이저놀이터

  21. This is the reason why short-term loan specialists like Skycap Financial Reviews, an alternative financing company,
    launched a free programme to teach its consumers the fundamentals of managing money.Amazons GPT55X

  32. Nice post. I learn something totally new and challenging on sites I stumbleupon on a daily basis. It will always be exciting to read articles from other writers and use a little something from their sites.스포츠토토

  34. I absolutely love your website.. Great colors & theme. Did you develop this web site yourself? Please reply back as I’m attempting to create my very own website and would like to learn where you got this from or exactly what the theme is called. Kudos.온라인카지노

  37. After looking at a few of the blog articles on your web page, I truly like your way of blogging. I saved as a favorite it to my bookmark webpage list and will be checking back in the near future. Please check out my web site as well and let me know how you feel.스포츠토토

  39. Thanks for posting the best information the blog is very important. We are also providing the best services click on the below links to visit our website.
    Join our Digital Marketing Course today and unlock the secrets to online success! Learn from experts, master the latest strategies, and boost your career. Don’t miss out—enroll now!
    Video Editing Course In Hyderabad

  44. There couple of intriguing points in time in this post but I do not know if I see these people center to heart. There is some validity but I most certainly will take hold opinion until I investigate it further. Great post , thanks and we want more! Included in FeedBurner likewise shillong teer common number

  50. Thanks for your blog post and discussing your own results together with us. Very well completed! I think a lot of people find it hard to understand paying attention to many controversial things associated with this topic, and your own results speak for themselves. I think several additional takeaways are the significance of following each of the ideas you presented above and being willing to be ultra unique about which one could really work for you best. Nice job. ท่อดักส์

Leave a Reply

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