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Economy & Tourism forum: How Cambodia tourism revival is possible ?

The Cambodia Tourism Board (CTB) held a highly successful workshop on Friday with the objective of revitalising the country’s tourism sector. The workshop under the theme ‘Cambodia Tourism Revival’, attracted more than 200 participants, including representatives from airline companies and tourism sectors, as well as journalists and delegates from all chambers of commerce.

A « Can Do » attitude

The event though brought together key industry stakeholders, government officials and international experts to address critical challenges and develop a strategic roadmap for the revival of Cambodia’s tourism industry.

The event, held at the Sofitel Phnom Penh Phokeethra, featured a keynote address by Mr. Vichit Ith, the newly appointed CEO of the CTB. In his opening speech, Mr. Ith outlined the Board's vision and strategic action plan for the industry.

Mr. Vichit Ith outlined first the reasons behind the country's current tourism crisis.

"Angkor Wat, Cambodia's renowned tourist attraction, has been the foundation of our tourism strategy. However, this mono-product strategy has made Cambodia particularly vulnerable to seasonality, as heritage tourism accounts for only 10% of the global market. This is why Cambodia's tourism industry has taken longer to recover from the economic shock of the pandemic than our ASEAN counterparts”.

In 2023, Cambodia recorded a net genuine tourist arrival figure of less than 6.6 million. This figure is considerably lower than that recorded in Thailand (39.9 million), Malaysia (26.1 million), Singapore (19.2 million) and Vietnam (18 million).

"It is crucial to make significant efforts to diversify and enhance our tourism products and services. This will help us to improve our image, attractiveness, competitiveness and sustainability, and to achieve our full potential.", he added.

Mr. Vichit Ith has identified six key factors that must be addressed to fully unlock the potential of the tourism industry in the region. These include a commitment to humility, creativity, and a "can do" attitude, as well as the development of an international brand, access to funds and resources, a supportive and responsive policy environment, and a genuine public-private partnership.

Challenges

Distinguished speakers, including H.E. Sok Soken, Minister of Tourism, and representatives from leading international companies such as Expedia and Vinci Airports, shared valuable insights and recommendations.

The minister presented the CTB action plan.He outlined that over the past six months, the CTB has been concentrating on engaging with international tourism markets, strengthening private sector connections and promoting the integration of Cambodia into tour packages.

The Ministry of Tourism has organised a series of events and activities to promote tourism through the "Visit Siem Reap 2024" campaign, as well as the "Year of people-to-people exchanges between Cambodia and China" and the inaugural "Cambodia-India tourism year".

The CTB will continue to arrange familiarisation trips for travel agents and other industry professionals, as well as other promotional events such as roadshows and travel fairs. These events are being held both domestically and internationally, with a particular focus on Siem Reap province. The private sector is playing an active role in these initiatives. It is anticipated that these activities will result in an immediate increase in international tourist numbers.

"The CTB will work closely with the Tourism Ministry to jointly promote these important events in order to attract both domestic and international tourists," explained H.E. Sok Soken.

"In the short term, over the next six to twelve months, the council's objective is to raise awareness of Cambodia's reputation. "This will include overseas marketing campaigns with a focus on public relations and the expansion of our strategies to attract key target markets," he added.

In the medium and long term, the council will focus on expanding the participation of all stakeholders through the development of new tourism products, leisure tourism, business and well-being tourism, as well as the promotion of major infrastructure development projects.

Subsequent panel discussions and presentations addressed pivotal issues, including the identification of deficiencies in tourism infrastructure, an understanding of evolving consumer behaviour, improvements to regional connectivity, and the development of a comprehensive industry assessment

During the debate moderated by M. Norinda from Cambodia Airports, each of the four panelists was first required to provide their assessment of the current tourism situation in the Kingdom.

The image of Cambodia

According to Catherine Germier-Hamel, one of the key challenges is not necessarily with the mechanisms themselves, but rather with the way in which they are being used. By sending blurred messages or an impressionistic image of Cambodia, people are unable to see what the country has to offer. It is a combination of various factors.

“In essence, there is a singular, dominant image of Cambodia: Angkor Wat. However, Angkor is just one component of a larger, more diverse set of attractions that contribute to Cambodia's overall appeal and potential.”

She thinks that the country is not particularly well known. There are numerous preconceived notions. For instance, Cambodia is often perceived as a poor country, with a multitude of narratives and images that reinforce this perception.

“However, when discussing the numerous advantages Cambodia offers, it is important to recognise that there are multiple aspects involved. We must focus on the unique experiences, products, and services that set us apart from our competitors, rather than simply highlighting our beaches, which are similar to those of our neighbors”, she said.

“Furthermore, it would be prudent for Cambodia to adopt a more confident stance, avoiding constant comparisons with neighbouring countries. In some instances, these comparisons may not be entirely relevant, given the distinct competitive landscape”, she added before mentionning Korea.

I have been resident in Korea for 17 years. In the aftermath of the war in 1953, Korea was facing significant challenges. Despite the challenges it has faced, Korea has become an attractive destination for foreign investment. It has successfully overcome the legacy of colonialism and other issues to become a vibrant and competitive nation. "Cambodia can learn from Korea's example and leverage its unique strengths to attract international interest," she concluded.

"Currently, the tourism sector is experiencing a relatively average performance. Some businesses in this field may be thriving. In this instance, I would like to extend my congratulations. I am pleased to hear this positive news. However, the overall trend is not particularly encouraging," stated Charles-Henri Chevet, General Manager & Area General Manager of Phokeethra Hotels · Sofitel Phnom Penh Phokeethra.

Despite Cambodia's numerous advantages, including reliable internet, advanced digital payment solutions, excellent hotels and restaurants, stunning landscapes and welcoming people, the situation remains challenging.

Mr. Chevet also noted the potential for confusion between the roles of the private and public sectors.

"It is essential that Cambodia is positioned as a nation on the global stage. To achieve this, we require publicity and marketing in key markets, feeder markets and those we believe can bring us high-quality tourists."

M. Chevet then highlighted that the private sector is unable to finance international marketing campaigns, as this is beyond its financial capabilities. "We are pleased to assist with events and other initiatives, and to welcome and facilitate visits from the public sector to showcase the destination”.

"However, we do have limitations," he added.

“I believe the glass is half empty and half full. Let us first consider the half-empty scenario. In terms of the figures, I am in complete agreement with Charles. The global outlook is not particularly encouraging at this time. A review of the data reveals a decline in airport numbers in Penang Bay, Malaysia, which is the capital and the centre of gravity of the country. We are currently operating at approximately 65% of the 2019 level. Singapore is experiencing even greater challenges due to the lack of diversified traffic typical of a capital city," stated Ms. Patrine Tay, Marketing Director for VINCI Airports in Singapore.

She then proceeded to outline the three main obstacles to Cambodia's competitiveness. These are the lack of a visa waiver policy, the perception of Cambodia as unsafe, and the reduced interest from Chinese investors in rebuilding the zero-dollar tourism product in Cambodia. These factors have resulted in ongoing supply chain disruption.

She also highlighted China-related issues, including the economic challenges faced by Chinese mass travellers due to the pandemic, the real estate crisis and the government crackdown on online gambling to maintain domestic consumption.

B2C marketing, products and stories

Furthermore, Ms. Patrine Tay outlined the preferred travel themes, which were found to be natural scenery (68%), local cuisine, local customs and traditions, and the sea and beach.

“In terms of visitor interest, history and culture are currently in fifth place, which indicates that the Angkor Temples are no longer the primary attraction for tourists”, she said.

Furthermore, Ms. Patrine stated that B2C marketing and diversification are essential strategies for boosting tourism. In order to improve Cambodia's competitiveness, three key areas require attention. The measures would be to lower Cambodia's entry barriers, strengthen Cambodia's destination marketing and create new tourism products and stories.

More coordination and diversification

According to Chiang Jo-Peng (Cambodia Angkor Air), the coordination in Cambodia could be improved. “As private sector organisations, we were each contributing our own input, but there was never a unified leader to direct the overall effort.”, she said.

“This has had a significant impact on the effectiveness of the individual initiatives that we were all struggling to implement independently. It is imperative that the country adopts a more coordinated and unified approach in order to remain competitive in the current global market.”

“The competitive landscape in Cambodia has intensified significantly in recent years. The world is changing rapidly, and we must adapt to keep pace. To some extent, Cambodia is a victim of its own success. You have a magnificent UNESCO heritage site. While this is a positive outcome, it has also led to a lack of motivation to diversify and explore new products, branding, and narratives, as Patrine mentioned.”, she underlined.

“I believe this is the key area of focus as we look to the future. Furthermore, two years ago, we began to perceive a sentiment among industry stakeholders that the global pandemic was nearing its conclusion and that the aviation market would soon resume its pre-crisis trajectory. Furthermore, the majority of global cities have demonstrated a markedly positive outcome. However, there is still room for improvement in Cambodia. By way of illustration, Angkor Wat is widely regarded as an exceptional tourist attraction.

“However, I would like to suggest that it may not be the most suitable attraction for children or family members, given that the children are always running around. There was a clear expectation that the experience would be more engaging and allow for more interaction.”

“Therefore, when attempting to promote these attractions further, it is challenging to encourage visitors to venture beyond their comfort zone and seek out more appealing experiences. However, they all stated that there are additional attractions. These include the country's sights, natural resources, and its people. In particular, the Khmer smile is a distinctive and appealing feature that could be further promoted in conjunction with the tourism sector and the country's other resources. I believe there are further opportunities for market development. For instance, we recently launched a historical flight between New Delhi and Cambodia, and we are exploring the possibility of opening additional international routes to attract tourists to this beautiful country and its cities.”, she concluded.

It may not be immediately apparent, but it is nonetheless crucial to ensure that there is effective terrestrial connectivity. Some border crossings between Cambodia and its neighbours are facing challenges, such as substandard infrastructure and a lack of coordination between the respective immigration services.

A key outcome of the workshop was the formation of task forces to spearhead specific initiatives. Industry representatives volunteered to lead these task forces, demonstrating their commitment to revitalising Cambodia's tourism sector. Finally, participants engaged in constructive discussions, identifying key challenges and proposing innovative solutions to address them.

The workshop concluded with a networking cocktail reception, providing attendees with an opportunity to further discuss potential partnerships and collaborations.

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