Tourism Sector in Cambodia

EXECUTIVE SUMMARY

This Report is presenting the current development of Cambodia tourism sector, which is a core area in service industry. Even though there are some hurdles for the time being, we believe the prospects of this sector will be very strong. Over the period of 16 years, tourism has an average growth of 19.3%, and become one of the key sectors of the Cambodian economy, representing 15.7% (or US$1.78 billion) of GDP in 2010, up from just 2.9% in 1995. This significant growth has been reflected in increasing political stability, improving safety, rising quantity and quality of available room supply, restaurants, development of tourist attractions, and gradually growing global awareness of the country as a destination. In addition, it has contributed to the excess of demand on accommodation over the rooms supply growth. In the mean time, tourism sector is expected to grow significantly in the coming years because of the efficient and effective strategy made by the Royal Government of Cambodia. As a result, this will provide more rooms of profit for new comers to the market, while existing players should find good solution, i.e. more funds and expertise, to compete and maintain their leading position in the sector.

OVERVIEW OF SERVICES INDUSTRY
After the sharp slowdown in 2009 caused by the global financial crisis, services industry, producing about one third of Cambodia GDP, grew by 4.3% in 2010. The contribution was mainly from a relatively high growth rates in the local trade and banking sector, especially from tourism (figure 01). The recovery in tourism means a pickup in hotels and restaurants, increasing in turn local transportation and trade activities to a certain extent. The number of visitor arrivals in 2010 ascended by 16% y-o-y to 2.5 million people, according to Ministry of Tourism (MOT) statistics.

| | Print This! | No comments

Do you like this post?