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

2,611 thoughts on “Lodging Industry in Cambodia”

  9. Every student, regardless of their academic level, wants to perform well in class and impress their teacher, but not many get the chance to do so. Providing students with the best assignment writing service and assisting them in achieving their academic objectives is where essay writing help comes in. With prestigious degrees and relevant experience, the skilled writers are always prepared to deliver flawless documents and services of the highest quality.

  10. Your writing is perfect and complete. 먹튀사이트 However, I think it will be more wonderful if your post includes additional topics that I am thinking of. I have a lot of posts on my site similar to your topic. Would you like to visit once?

  11. I am just willing a new offered. It really is amazing to find out most of the people explain in words through your heart let alone potential in that will simple theme place are likely to be pleasantly observed. muka lu kayak kontol

  13. After study a few of the blogs on your internet site now, we truly like your technique for blogging. I bookmarked it to my bookmark website list and are checking back soon. Pls check out my site in addition and inform me what you consider. Đăng ký jun88

  14. From some point on, I am preparing to build my site while browsing various sites. It is now somewhat completed. If you are interested, please come to play with 토토사이트 !

  15. excellent submit, very informative. I wonder why the other experts of this sector do not realize this. You must continue your writing. I am confident, you have a great readers’ base already! LOGIN ASIA4D

  16. Wow! This can be one particular of the most beneficial blogs We have ever arrive across on this subject. Basically Magnificent. I’m also a specialist in this topic so I can understand your effort. Xo88

  17. Enjoy unmatched pleasure and friendship with your long-desired professional call girls. This is a popular spot where you may enjoy fresh call girl that satisfy your expectations. If you feel unsatisfied with your everyday routine, this is a great time to realize your goals. Some couples have struggled to develop sexual intimacy due to their busy lifestyles. Having sexual attraction to someone may enhance personal interactions. Since many call girls offer passionate services, engaging with them might be helpful. Select girls of your choice to temporarily meet your expectations and satisfy your wants. Have fun and you’ll feel better.

  18. Spolu s vaší prezentací vám to opravdu připadá opravdu snadné, ale já považuji toto téma za opravdu jednu věc, o které si myslím, že jí nikdy nebudu rozumět.
    Připadá mi to příliš složité a extrémně široké.

    스포츠토토
    Těším se na vaše další odeslání, pokusím se o to
    pochopte to!

  19. Woah… – Gulvafslibning | Kurt Gulvmand I’m genuinely digging your design:style for the blog. It is very simple, though great. A lot of times it’s tough to obtain that balance between usability as well as appearance. I actually should mention that you’ve done a very good site. Also, this weblog starts very quick to me with Opera. Outstanding Site – Gulvafslibning | Kurt Gulvmand Mmm what about Libya awesome news flash! Peace Flash Factory Web Design jun88

  20. PERDANA138 adalah situs judi slot online terpercaya yang sudah resmi bergabung selama bertahun tahun lamanya, sudah banyak yang membuktikan bahwa sangat mudah untuk mendapatkan kemenangan ketika bermain di situs PERDANA138. Daftarkan diri Anda untuk mengambil keuntungan besar sekarang.

  21. Can I just say that of a relief to locate someone who actually knows what theyre preaching about online. You definitely learn how to bring a problem to light and work out it important. The best way to ought to ought to see this and appreciate this side from the story. I cant believe youre less well-liked as you certainly possess the gift. Jun88

  23. Promptly your blog might irrefutably typically possibly be visible related to each one of blog site people today, on account of diligent studies and as well lab tests. jun88

  25. This key fact write is get many site visitors. How should you publicize it? Doing it offers a fantastic customized style during strategies. My partner and i possessing a little something truly and / or excessive provide home elevators is the most essential element. Rút tiền Miso88

  26. Snap shots entirely on your web blog although building desire immediately a pinch of amount of money submits. Fully satisfying way of permanent long run, Soon we will be book-marking in the period develop into a person’s work surface accomplish takes place inches right up inches. https://vn58.uno/

  27. This would be the right blog for anyone who desires to find out about this topic. You know a whole lot its practically difficult to argue along with you (not that When i would want…HaHa). You certainly put a new spin on the topic thats been discussing for years. Fantastic stuff, just fantastic! nohu

  29. Greetings! I stumbled upon your blog via MSN, and I must say, this is an exceptionally well-written article. I’ve also visited a site at briansclub to explore more useful information. Thanks for the post; I’ll certainly be back for more.

  30. I appreciate your generous words and am delighted to hear that you found the article captivating. Your encouragement means a lot. If more website owners and bloggers strive to create valuable content, the internet can become an even more enriching space.

  31. One time i actually got on your webpage even if finding account simply to some extent great deal submits. Fulfilling technique for coming, We’re book-marking together receive styles ending rises up. sv66

  32. An impressive share, I simply with all this onto a colleague who had previously been carrying out a little analysis during this. And then he in reality bought me breakfast since I came across it for him.. smile. So permit me to reword that: Thnx for the treat! But yeah Thnkx for spending any time to go over this, I feel strongly about this and enjoy reading read more about this topic. Whenever possible, as you grow expertise, would you mind updating your website with more details? It is extremely helpful for me. Massive thumb up for this short article! Trang chủ Xo88

  43. One time i actually got on your webpage even if finding account simply to some extent great deal submits. Fulfilling technique for coming, We’re book-marking together receive styles ending rises up. nha cai uy tin

  45. I adore your website.. excellent colours & theme. Did an individual design this site oneself or maybe have you actually rely on someone else to do it for you personally? Plz answer while I!|m planning to design and style my very own blog site as well as want to learn where by u became this specific through. thanks kèo nhà cái hôm nay

  46. Hello, really fascinating article. My sister and I have been looking for extensive details on this type of stuff for a little bit, but we could not until now. Do you consider you can also make several youtube videos concerning this, I do believe your web blog would be far more thorough in case you did. If not, oh well. I will be viewing on this web page in the not too distant future. Contact me to maintain me up-to-date. granite countertops cleveland tỷ lệ bóng đá kèo nhà cái

  47. I would like to verbalize that I haven’t reviewed something so exciting in a while. There are many motivating ideas and opinions. I suppose that you absolutely stumbled upon an vital fact and I signed up to your rss feed to stay well-versed. tylebongda

  49. Situs Taruhan Bola untuk JUDI BOLA dengan kelengkapan permainan Taruhan Bola Online diantaranya Sbobet, M88, Ubobet, Cmd, Oriental Gaming dan masih banyak lagi Judi Bola Online lainnya. Dapatkan promo bonus deposit harian 25% dan bonus rollingan hingga 1% . Temukan juga kami dilink kantorbola77 , kantorbola88 dan kantorbola99 . kantorbola

  50. Thanks for all of your work on this blog. My mother really loves managing investigations and it’s really obvious why. A lot of people know all of the compelling method you create very important strategies on this web blog and as well recommend response from visitors on the matter so my daughter is now studying so much. Take pleasure in the rest of the new year. Your carrying out a fantastic job. top nhà cái

Leave a Reply

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