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

1,226 thoughts on “Lodging Industry in Cambodia”

  1. Nestled in the heart of the Mediterranean, Kibris, also known as the Turkish Republic of Northern Cyprus, is a destination rich in history, culture, and charm. Beyond its stunning landscapes and historical sites, Kibris offers a unique experience for those who love to shop: second-hand shopping. From bustling markets to quaint thrift stores, Kibris boasts a plethora of opportunities for treasure hunters and bargain seekers alike Mezunum satiyorum

  2. Really impressed! Everything is very open and very clear clarification of issues. It contains truly facts. Your website is very valuable. Thanks for sharing. indoslot

  3. Going to graduate school was a positive decision for me. I enjoyed the coursework, the presentations, the fellow students, and the professors. And since my company reimbursed 100% of the tuition, the only cost that I had to pay on my own was for books and supplies. Otherwise, I received a free master’s degree. All that I had to invest was my time. driveway cleaning bristol

  4. Jalandhar Call Girls are purely independent, elite girls who offer a memorable pleasuring time to the person who is tired in their life. They belong to different age groups and to different by birth and upbringing. They love to roam around different places where they can enjoy their time and life with the people they want to hang around with.

  5. Whether you’re looking for the perfect companion to take out for a night on the town or an intimate evening with a special someone, we have got you covered. Our call girl service Hyderabad professionals is here to make sure that all your needs are taken care of.

  6. Good to become visiting your weblog again, it has been months for me. Nicely this article that i’ve been waited for so long. I will need this post to total my assignment in the college, and it has exact same topic together with your write-up. Thanks, good share. bj 배팅사이트

  8. You actually make it look so easy with your performance but I find this matter to be actually something which I think I would never comprehend. It seems too complicated and extremely broad for me. I’m looking forward for your next post, I’ll try to get the hang of it! dIva4d

  9. Thanks for the concepts you write about through this website. In addition, numerous young women which become pregnant usually do not even seek to get health insurance because they have anxiety they wouldn’t qualify. Although many states currently require that insurers offer coverage no matter what about the pre-existing conditions. Fees on these guaranteed programs are usually higher, but when thinking about the high cost of medical care it may be any safer strategy to use to protect your current financial potential. cam match video

  10. While i acquired on your web log however adding awareness just a bit touch submits. Nice technique for potential, We are book-marking during a period find versions conclude spgs way up. business group pro

  12. The heart of your writing whilst appearing agreeable in the beginning, did not sit perfectly with me after some time. Someplace throughout the paragraphs you actually were able to make me a believer but just for a while. I still have got a problem with your leaps in assumptions and you would do well to fill in all those gaps. When you actually can accomplish that, I would surely end up being fascinated. depannage informatique a distance

  15. I still can’t quite think I could often be one of those reading through the important tips found on this blog. My family and I are really thankful for your generosity and for giving me the chance to pursue our chosen profession path. Thank you for the important information I got from your site. dépannage informatique courbevoie

  16. در میان هیاهوی زندگی، به خودتان فرصتی برای آرامش و رهایی از تنش بدهید.
    سالن ماساژ دلایت، با ماسورهای مجرب و خدمات متنوع، شما را به سفری عمیق در دنیای آرامش می‌برد.
    لحظه‌ای غرق در سکوت و صلح شوید و خستگی و اضطراب را از خود دور کنید.

  18. 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 dépannage ordinateur neuilly sur seine

  20. I am typically to blogging and i really appreciate your content regularly. This content has really peaks my interest. I’m going to bookmark your web site and maintain checking for first time information.

  21. That’s internet marketing special deals plans as a way to important consider before ad. Be more successful to put in writing more advantageous put along these lines. moving company service list

  22. That’s internet marketing special deals plans as a way to important consider before ad. Be more successful to put in writing more advantageous put along these lines. akun pro monaco

  23. I would recommend virtually any articles. It is usually great to work through you may describe inside terms coming from midsection not to mention image quality applying this beneficial articles is fairly basically identified. akun pro rusia

  24. Hello Friends Welcome to Kolkata Call Girl Service. We are offering High Profile Top Sexy Call girls at a Very Affordable rate. So If you in Kolkata and looking for High-Class Sexy Kolkata call girl visit my website.

  25. Hello Friends Welcome to Kolkata Call Girl Service. We are offering High Profile Top Sexy Call girls at a Very Affordable rate. So If you are in Kolkata and looking for a High-Class Sexy Kolkata call girl visit my website.

  27. Wow, great stuff. I have been considering this for a few years. I’m glad to seemingly find someone that comes to the same conclusions as me. At least it seems that’s the case. I’ll keep visiting your site to stay informed. depannage ordinateur boulogne billancourt

  28. Our Gaya Call Girls are considered the greatest because of our amazing offers and gorgeous agencies. You would be delighted to travel with our incredibly capable associates. These women are enthusiastic and eager to meet with clients. You will feel better in no time if you select one of these lovely and kind Call Girl in Gaya. Customers feel free to express their true feelings because our females are friendly. One may feel really satisfied at home with these stunning, horniest cuties.

  29. Hello! I recently wish to give a enormous thumbs up for your great information you’ve got here for this post. I’ll be coming back to your website for additional soon. maintenance informatique paris

  31. 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. dépannage pc à distance

  32. Wow! This could be one particular of the most beneficial blogs We’ve ever arrive across on this subject. Actually Wonderful. I’m also an expert in this topic so I can understand your effort. assistance pc à distance

  33. 1win promo code “DOR777” gives you the right to participate in exclusive bonus 500% up to $1025, with an opportunity to win valuable gifts. If you aim at increasing your capital, don’t miss out on a chance to use profitable offers. Apply it upon register for better rewards in the future. It is one of our unique bonus codes that people can avail themselves of and get a welcome promotion. Some online casinos have a complicated procedure you have to complete to apply the coupon, but as you will see, 1win is different. 1win bonus code no deposit

  35. Woah! I’m really digging the template/theme of this blog. It’s simple, yet effective. A lot of times it’s challenging to get that “perfect balance” between usability and visual appeal. I must say you’ve done a great job with this. Additionally, the blog loads extremely quick for me on Firefox. Outstanding Blog! assistance pc en ligne

  36. 1win promo code “DOR777” gives you the right to participate in exclusive bonus 500% up to $1025, with an opportunity to win valuable gifts. If you aim at increasing your capital, don’t miss out on a chance to use profitable offers. Apply it upon register for better rewards in the future. It is one of our unique bonus codes that people can avail themselves of and get a welcome promotion. Some online casinos have a complicated procedure you have to complete to apply the coupon, but as you will see, 1win is different.
    1win promo code today

  37. I’m extremely impressed with your writing skills and also with the layout on your blog. Is this a paid theme or did you modify it yourself? Anyway keep up the excellent quality writing, it is rare to see a nice blog like this one today.. depannage informatique courbevoie

  38. You really make it seem so easy with your presentation but I find this topic to be really something that I think I would never understand. It seems too complex and extremely broad for me. I’m looking forward for your next post, I’ll try to get the hang of it! depannage ordinateur courbevoie

  46. Thanks for another excellent article. The place else could anyone get that type of information in such a perfect means of writing? I have a presentation next week, and I’m at the search for such info. reparation ordinateur

  48. Good luck getting people behind this one. Though you make some VERY fascinating points, youre going to have to do more than bring up a few things that may be different than what weve already heard. What are trying to say here? What do you want us to think? It seems like you cant really get behind a unique thought. Anyway, thats just my opinion. reparation pc

  49. Financial advice and investment online and in person
    Dr. Abbas Rafiee covers all the services needed by businesses in his collection, so that business activists can review and of course cover all the services needed by their business in a centralized and unified manner. In this series, Dr. Abbas Rafiee specially helps people to improve their financial situation and investment so that they can follow the most reliable path in this field according to the necessary knowledge.
    https://abbasrafiee.com/

Leave a Reply

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