This document reviews Cambodia's growing tourism industry and its implications for sustainability. It discusses the rapid growth in tourist arrivals and tourism receipts in recent years. Infrastructure like airports, hotels and transportation have also grown significantly. Tourism has contributed greatly to Cambodia's economy by generating jobs and income, but it also faces challenges like seasonal fluctuations and economic leakage. The document proposes several mechanisms to promote sustainable tourism development, such as diversifying tourism products, improving connectivity, developing human resources and establishing safety and environmental management systems.

1. Review of Cambodia’sTourism Industry:
The Growth and Implications on
Its Sustainability
Dr. NETH Baromey
Department of Tourism, Royal University of Phnom Penh

2. Contents
§ Cambodia’s Tourism Development from a Glance
§ Tourism Infrastructure and Logistics
§ Tourism Momentum in Generating Formal and Informal
Economy
§ Implications of Tourism Growth
§ Opportunities and Challenges for Tourism Growth
§ Mechanisms to Sustain Tourism Development in
Cambodia

3. Cambodia’sTourism Development
from a Glance

5. Tourism Highlights
Year Num. of Inter.
Tourists
Tourism
Receipts ($ mil.)
2010 2,508, 289 1,786
2011 2,881, 862 1,912
2012 3,584, 307 2,210
2013 4,210, 165 2,547
2014 4,502, 775 2,736
2015 (Until Oct) 3,755, 792 NA
Source: Statistics and Tourism Information Department, MOT, (2015)

6. TopTen Market Arrivals
in 2014 and 2015
Source: Statistics and Tourism Information Department, MOT, (2015)
Region No. of Inter.Tourists
(Oct. 2015)
Asia and the Pacific 2,937,169
Europe 552,605
Americas 247,672
Africa 6,964
Middle East 11,382

7. 3.Transportation
Tourism Logistics
1. Infrastructure and
Connectivity
2. Production
4. Services

8. Infrastructure and Connectivity
Est.Accommodations 1396
Est.Travel agents 804
Est.Transportation 380
Source: http://www.tourismcambodia.org/

9. Access Modes
Access
from
Total No. of
Inter.
Checkpoints
List of Inter. Checkpoints
Vietnam 9 Bavet, Kaam Samnor, Phnom Den,Trapaing
Phlong,Trapaing Srè, Oyadav, Banteay Chakrei ,
Preak Chak, Samrong
Lao 1 Trapaing Kreal
Thailand 6 Poipet, ChamYeam, O'smach, Choam, Prom,
Dong
By Land
Source: Ministry of Tourism, (2016)

11. Access Modes
Total No. Name of the International Ports
1 Sihanouk International Port
2 Phnom Penh International Port
Alternative Choices
1 Reach Phnom Penh through the ships along the
Mekong River (Vietnam and partly from Laos)
2 Trapaing Kreal international border checkpoint (Lao)
By Water
By Air
No International Airports
1 Phnom Penh international airport
2 Siem Reap international airport
3 Sihanouk international airport

12. Infrastructure and Connectivity
Tourism connectivity:
§ ASEAN tourism connectivity

13. By-RegionTourism
Zones
1. Mekong tourism
corridor
4. Emerald triangle
5. Southern coastal
tourism corridor
6. Green development
triangle
v Heritage necklace
circuit
v GMS coastal and river
cruise lines

14. Transportation
§ Bus and car rental companies
§ Local & international airline companies
§ Local transports
§ Water way transport, etc.

15. Low cost carriers airline

16. Services & Production
§ Accommodation (hotels, guesthouses, eco-
lodges, boutiques, resorts, home-stays, B&B,
etc.)
§ Restaurants and local food catering
§ Travel agents and tour operators
§ Handicrafts and souvenirs
§ Transport
§ Merchandise

17. Implications ofTourism Growth

18. Positive Economic Impacts
Economic Implication
§ Foreign exchange earning
§ Plenty of job
opportunities
§ Infrastructure investment
§ Contribution to local
economy
§ Others

19. Tourism Momentum in Generating Economy
Source: WTTC, (2015)

20. Tourism Momentum in Generating Economy
Source:WTTC, (2015)

21. Positive Social Impacts
§ Tourism can encourage the innovation
of entrepreneurs within the local
communities.
§ Encourage people to value their living
culture.
§ Motivate local employment in tourism
industry.
§ Strengthening safety and security,
§ Improved social welfare of the locals
§ Others

22. Positive Environmental Impacts
§ Improved & integrated environmental
governance agendas and mechanisms
§ Improved environmental management
plans
§ Improved CSR practices among
private entities
§ Community based ecotourism
guidelines and monitoring toolkits
§ Sign post and the interpretation
§ Rehabilitation and environmental
conservation fund
§ Others

23. Negative Impacts
§ Economic leakage in the tourism sector in Cambodia, roughly estimated by
the MoT and the Ministry of Commerce (2006), reached 40% in 2006, as
cited in UNCTAD (2007) and Tourism&Leisure (2009).This amount of
leakage was also predicted to continue through to 2010 (MoC 2006;
UNCTAD 2007;Tourism&Leisure 2009).
§ The sources and amounts of “leakage” or “non-retention” in Siem Reap Town
(SRT) and Siem Reap Province (SRP) as a whole in 2010 comprise:
(1) the continuing import of required products and services from outside
SR, especially from foreign countries (SRT: 52%, SRP: 43%);
(2) the remittance of wages and salaries by Cambodian in-migrants and
foreign staff out of SR (SRT: 24%, SRP: 8%);
(3) the remittance of gross operating surpluses out of SR (SRT: 54%, SRP:
45%); and
(4) taxes and other fees or non-taxes remitted outside the designated area

24. Negative Impacts
§ Increased dependency on single-coined economy while
tourism is not widely used for multi-sectoral growth
§ Cultural alienation and commoditization
§ Homogenization of local identities
§ Seasonal tourism wages due to impacts of using casual
labors

25. Negative Impacts
§ Direct impacts of extractive
industries on tourist attractions &
product development and
diversification
§ Impacts from the uses of energy
§ Overcrowded and pollution
§ Impacts from tourists and other
human-induced consequences, i.e.
commercialization of natural
environment & biodiversity resources
in an unsustainable way
§ Impacts of waste on tourism
§ Impacts on wildlife & their behaviors

26. Challenges forTourism Growth
§ Lack of direct flights from far
away tourism market sources
§ Limited local connectivity
§ Limited national airlines and
dependency on external
investment
§ Lack of facility, infrastructure,
and hospitality services at the
international bordering gateways
1. Connectivity andTravel Facilitation

27. 2. Human Resource Development
§ Lack of tourism professionals: 500,000 tourism
workforces are required to fill the loop by 2020 (MoT,
2012).
§ Cambodian workforces enormously are employed in
low-skill and operational skill levels within the industry.

28. 3. Marketing and Promotional Aspects
§ Lack of promotional activities for secondary destinations.
§ Lack of marketing campaigns at tourist generating regions.
§ Lack of information and interpretation materials in each
province / destination / site (brochures, core maps of
attractions, etc.).

29. 4. Connectivity and Circuit of Attractions
§ Lack of connectivity among core attractions and secondary
destinations.
§ Many potential attractions are not widely known.
§ Lack of satellite attractions to develop extensive tourist visit circuits.

30. 5. Seasonal Fluctuations & Impacts of
the Global Economy

31. Other Challenges
Legal
Challenges
Policy
Challenges
Ins1tu1onal
Challenges
Structural
Challenges
Market
Challenges
Implementa1on
Challenges
Poli1cal
Challenges
Technological
Challenges
Capability-­‐
supported
Sustainability
of
CBT
/
CBET
Economic
Development
HR
Development
Community
Empowerment
Community
Health
Conserva1on

32. Mechanisms to
SustainTourism Development
Inclusiveness
Innova1on
Resilience
Green
Approaches
Equity
Risk
&
Crisis
Solving
Approaches

33. (1) Strategic Direction and Strategies
Tourism Product Development
Marketing and Promotion
Connectivity and Facilitation of travel and tourists
transportation
Safety system and tourism negative impact management
Legal system and management mechanisms
Human resource development

34. 1. Product Development & Diversification
based upon Innovation of Sustainability
Small scale
ecotourism
Large scale
ecotourism
Agro-ecotourism
Community
-based
tourism /
ecotourism

35. The EmergingTrend of Community-BasedTourism
/ Ecotourism (CBT/CBET)
Source: MoT (2016)

36. New Customers, Emerging Destinations
The rising number of Asian travellers: “The Asian middle
classes will make up the largest share of international
travel” R. Conrady & M. Buck (2012).

37. Emerging
Destinations

38. Creative Events

39. 2. Marketing and Promotion

40. AVision to Build Siem
Reap Angkor Region as
a Cultural & Economic
Hub of ASEAN
3. Connectivity and facilitation ofTravel

41. 3.The Facilitation of E-Visa
TouristVisa
Entry Single entry only
Fees USD20 + USD5 (processing charge)
Validity 3 months (starting from the date of issue)
Length of Stay 30 days

42. 4.Tourist Safety System and Impact
Management
§ Angkor Tourism Master Plan-
Visitor Code of Conduct
§ Sustainable Coastal Tourism
Management Committee
§ Green Hotel Standard
§ Others

43. 5. Legal System and Management
Mechanisms
Marketing Strategies for Emerging
Chinese Market

44. 6. Human Resource Development
§ There are increasing numbers of
degree and non-degree tourism,
hospitality and hotel management
training programs in Cambodia.
§ Degree programs are normally
provided by higher education
institutions, while non-degree
programs are usually established and
supported by INGOs and NGOs
running social enterprises, responsible
ministries (i.e. MoT, MLVT, MoEYS),
and private establishments, all are
struggling to reach ASEAN standard
for tourism education.

45. (2) One Belt One Road Initiative

46. (3) ASEANTourism
Connectivity

47. (4) ASEAN Initiative:ASEAN Clean
Tourist City Standard
§ Leading coordinator
§ With indicator, criteria,
implementation
mechanisms were
endorsed at ATF, 2014.

48. (5) ASEAN Initiative:ASEAN
Community-BasedTourism Standard
§ The set of standard of
community based tourism was
developed with facilitation from
Cambodia’s MoT.
§ The meeting on ASEAN
community based tourism
standard was held in 2014 in
Siem Reap Province

49. Samples of Certificates

50. (6) Guidelines, M&EToolkits and
Scorecards for CBT/CBET
§ Were developed by Department of Tourism of
Mondulkiri and WWF-Cambodia with the
technical support from the Department of
Tourism of RUPP.
§ Aim at providing community roadmap of how to
basically develop CBT/CBET in an
entrepreneurial and sustainable way at local level.
§ Will be replicated at other CBT/CBET sites
across Cambodia

51. CBET Guideline Components
Phase 1
Feasibility
Study
Phase 2
Formalization
Procedure of
CBET Site
Phase 3
Formulation
Sustainable
CBET
Business
Phase 4
Sustainability
Management
and
Monitoring

52. Phase 1: Feasibility Study
1. General
Poll
2. Resource
Inventory
3. Stakeholders
& Institutional
Analysis
4.
Community
Assessment
5. Market
Assessment
Feasibility
Methods
and Process

53. Phase 2: Formulation Procedure of CBET Site
CBETEstablishment
Step 1. Registration and Feasibility Study
Step 2. Zoning and Spatial Land Use Planning
Step 3. Establishment of CBET MC
Step 4. Formulation of By-Laws
Step 5. Formulation of Management Plan
Step 6. Stakeholders Endorsement and Implementation

54. Phase 3: Formulation of CBET Business Plan
Step 1:
Envision CBET
Business
Typology
Step 2:
Develop vision
and mission
statement
Step 3: CBET
Enterprise
Description
Step 4: Value
chain and
Green supply
management
Step 5:
Consumer care
and quality
management
plan
Step 6: Sale
and marketing
strategy
Step 7: Risk &
crisis
management

55. Phase 4: Sustainability
Management and Monitoring Plan
Step 1: Environmental & Biodiversity Conservation
Step 2: Visitor Management
Step 3: Community/Indigenous Empowerment
Step 4: Community/Indigenous Capacity Development
Step 5: Contribution to Community Welfare & Social Inclusion
Step 6: Respect of community/indigenous culture
Step 7: CBET Business Sustainability

56. (7) Principles for Agro-Ecotourism
Development in Northeastern Cambodia
• Crop diversification with rotational crop planting
system, improve animal and human welfare
Organically-grown and
managed farm
• Water quality and soil fertility management, integrated
land used planning, ecosystem approaches in
agricultural production
CC response in agricultural
practice and environmental
governance
• Product development & diversification and quality
improvement
Visitor and tourist
experiences
• Create strong linkage and network with other
businesses
Multi-sectorial integration
• Create partnerships, networks, and consultation with
government advisor, CSOs, CBOs, private sectors,
etc.
Stakeholder collaboration
• Build trust, ownership, capacity and capital
investment, proper governance structure, business
legal frameworks
Community empowerment
and ownership building
• Product development, marketing network, distinctive
product branding, sustainable business models,
extensive initial consultation
Market mechanisms

57. Agro-Ecotourism Development under 3 Scenarios
Scenario 1: Community-Owned & Managed
Community
Empowerment,
Ownership
building
Stakeholder
Collaboration
Organically-
managed
farm
Climate
Change
Responses &
Environ.
Governance
Market
Mechanisms
Visitor /
Tourist
Experience &
Satisfaction
Multi-Sectoral
Integration

58. Scenario 2: Joint Venture
Community
Empowerment,
Ownership
building
Market
Mechanisms
Stakeholder
Collaboration
Multi-Sectoral
Integration
Organically-
managed
farm
Climate
Change
Responses &
Environ.
Governance
Visitor /
Tourist
Experience &
Satisfaction

59. Scenario 3:
Private-Owned & Managed Farm
Market
Mechanisms
Community
Empowerment,
Ownership
building
Visitor /
Tourist
Experience &
Satisfaction
Stakeholder
Collaboration
Organically-
managed
farm
Climate
Change
Responses &
Environ.
Governance
Multi-Sectoral
Integration

60. (8) Private Sector Partnership Building
and Public-Private and
Community-Private Sector Partnership
§ The Cambodia hotel
association
§ The Cambodia restaurant
association
§ Cambodia chefs federation
§ Cambodia chefs association
§ Cambodia E-Visa
§ Business 2 Business The strong alliance of private
services provided in tourism

61. THANKS