Cambodia riding on domestic tourism to tide over slow international arrivals

Cambodia has stunning beaches and cultural sites that have lacked promotion in the past. - Phnom Penh Post/ANN

PHNOM PENH, June 4 (Phnom Penh Post/ANN): Local tourists have been travelling inland whenever the opportunity allows for it in Cambodia. Though it isn’t enough to prop up the economy, domestic tourism has helped resuscitate some parts of industry

By default, the commune elections this weekend will likely cause a spurt in spot tourism as people travel home to cast their votes, thanks to a government order to employers to give workers time off.

“I have no doubt this will happen as Monday is a holiday. They will definitely enjoy the local [tourist] sites in their hometown,” said Thourn Sinan, chairman of Pacific Asia Travel Association (PATA) Cambodia chapter.

For Cambodia, it is the next long holiday after the weekends in May, which saw up to one million domestic trips, following the four-day Khmer New Year break.

Between January and April this year, Ministry of Tourism statistics showed, some 4.6 million Cambodians, 10 times more than foreigners, visited main tourist sites.

During the Khmer new year break, over five million domestic travellers criss-crossed the country, with Battambang, Kampong Cham and Banteay Meanchey holding the top three positions for the most visited provinces.

In that time, local tourists spent nearly US$500 million or an average of US$500 based on the expenditure of a family of five, the ministry said.

Since the pandemic, life has breathed into the tourism sector following the government’s decision to open up Cambodia to vaccinated travellers, though the complete return to pre-Covid tourist arrivals might only be in 2025.

In 2019, the tourism sector contributed 12.1 per cent to gross domestic product, Asian Development Bank stated. Last year, it plunged to 1.3 per cent.

Overall, the hotel sector has seen some improvement at around 20 per cent, said Din Somethearith, president of Cambodia Hotels Association.

“We are still struggling though. As you know hotels need to secure 50 per cent occupancy to survive, to sustain business. If you can’t secure 50 per cent occupancy, you are running at a loss. Therefore, we continue to struggle although the trend is positive,” he said.

International tourism in this region remains sluggish as external headwinds (Russia-Ukraine war, inflation, fuel surcharge) continue to weigh on the industry, and more in the coming months.

For the moment, industry players are banking on revenge booking in domestic and regional markets to sustain but this optimism is measured due to competition. - Phnom Penh Post/ANN