CBRE Suggests Strategies for Cambodia’s Tourism: Navigating Recovery and Charting a New Horizon

• 18 January 2024
• Local News
• 1866 Views

In the wake of the global upheaval caused by the COVID-19 pandemic, Cambodia’s tourism sector emerges as a beacon of recovery, though challenges linger on the path to regaining pre-pandemic glory. In 2019, Cambodia witnessed a bustling 6.5 million international tourists. The pandemic cast a shadow in 2020, plummeting arrivals to a mere 1 million.

The subsequent years saw a commendable rebound, with a surge to over 2 million arrivals in 2022. By November 2023, the numbers edged close to 5 million, marking a robust recovery. However, this still stands at a 26% deficit from the 2019 benchmark. This summary of tourism statistics was last updated by the CEO of CBRE Cambodia on 12 January 2024.

Tourism’s Economic Impact, Catalysing GDP Growth: The anticipated upswing in Cambodia’s GDP to 6.2% in 2023 underscores the pivotal role of tourism as a linchpin in the country’s economic revitalization.

Tourism Receipts, A Tale of Transformation: International tourism receipts underwent a significant metamorphosis, experiencing a seismic 71% shift from nearly US$5 billion in 2019 to a modest US$1.5 billion in 2022.

Average Daily Expenditure, Decoding Economic Dynamics: The average daily expenditure per arrival saw a substantial 62% dip, dwindling from US$120 in 2019 to approximately US$50 in 2022.

Strategies for Advancement: Navigating New Realities: Although statistics and tourism growth are still far lower than before the global crisis, however, since the end of 2021, tourism activity has been steadily increasing. Amid the recovery of this important economic challenge, at a real estate seminar on 12 January, Marc Townsend, CEO of CBRE Cambodia, proposed some strategies to seize this new opportunity as follows:

1. Diversification of Source Markets: Cambodia, recognising the decline in Chinese tourists, is engaging with India to unlock the vast potential of its burgeoning market—a strategic move to reduce dependence on specific sources.
2. Promotion and Marketing: Stepping up promotional activities across diverse channels becomes imperative for Cambodia to reclaim its standing as a premier tourist destination.
3. Enhanced Tourism Experience: A commitment to continuous enhancement and diversification of tourism offerings is pivotal, ensuring an enriched experience that compels visitors to extend their stays and contribute more to the local economy.
4. Addressing Spending Concerns: A nuanced understanding of factors influencing the decline in daily expenditures is critical, guiding initiatives to maximize the economic impact of each tourist’s visit.

• Analysis