Observers are skeptical that the tourism sector will really benefit Cambodians since most of the companies in this sector are foreign-owned

2015: $3.2 billion revenue expected in the tourism sector

11 June 2008
By Ky Soklim
Cambodge Soir Hebdo
Translated from French by Luc Sâr

The number of tourists keeps on increasing from one year to another. In 2007, Cambodia welcomed 2 million tourists who brought in a revenue of $1.4 billion. The tourism sector then represented 15 % of the GDP and allowed the creation of 300,000 jobs.

The ministry of Tourism predicts that in 2010, the number of foreign tourists will reach 3.2 millions, and will generate $2.1 billion in revenue for the kingdom. For 2015, 5 millions tourists are expected and they would bring in $3.2 billion in revenue. “The growth in tourism contributes to the development of the country, creates jobs, and reduces poverty,” Thong Khon, the Tourism ministry, commented during a presentation for the results of the government realizations between 2004 and 2007.

Some observers are skeptical about this optimistic outlook. According to these observers, revenue from tourism only benefit products imported from Thailand and Vietnam, such as for example, some of the companies are foreign owned [KI-Media note: The Sokha group which collects entrance fees at the Angkor park is owned by the Vietnamese Sok Kong].

While the number of foreign visitors in Cambodia continues to rise, the number of Cambodians leaving for overseas also increases steadily. In 2007, this number was estimated to be close to 1 million.

Son Chhay: "What China cares most about is land ... [it] is not going to help our economy"

$3 Billion Coastal Economic Zone to Open

By Mean Veasna, VOA Khmer
Original report from Phnom Penh
26 February 2008

China's Gainxu Taixu company and Cambodia International Economic Cooperation Investment announced the opening of the Sihanoukville Special Economic Zone Saturday, which could employ as many as 80,000 workers.

The investment was seen as a significant step to reduce widespread unemployment and boost economic growth in Cambodia.

"One hundred percent of the products from this special economic zone will have to be exported," Prime Minister Hun Sen said during an opening ceremony. "I am convinced that the Cambodian economy will rise, finally employing more than 80,000 workers, as China has a lot of investments. And with the export, our economic value is high and increasing."

Not all are optimistic Chinese investment will benefit Cambodia in the long run.

"What China cares most about is land, which can be rented or sold to investors from other countries, and such a thing is not going to help our economy," said opposition lawmaker Son Chhay. "Thus, the government has to encourage investment from other countries, with honest investment and that have developed industry, such as Japan or the US."