Tourism fears over Thai-Cambodia conflict

February 16, 2011
ABC Radio Australia

A number of tourism associations in Cambodia have warned that the ongoing border dispute and military conflict between Thailand and Cambodia could seriously harm the local tourism industry. Thai and Cambodian troops have exchanged fire for more than a week over a plot of land that surrounds the ancient Preah Vihear Temple. The temple itself is not directly disputed. But it is a UNESCO World Heritage Site and a major tourist attraction. And it's becoming an area that governments - including Australia's - now consider dangerous and they are warning people to stay away.

Presenter: Zulfikar Abbany

Speaker: Ho Vandy, co-chairman, Tourism Working Group, Phnom Penh

Click here to listen to the audio program (Windows Media)

Growing unrest to hit Cambodia's tourism sector

Tuesday, 18 May 2010
Nguon Sovan
The Phnom Penh Post

TOURISM industry representatives expressed concern Monday that visitors to the Kingdom could decrease as Bangkok, a key gateway to Cambodia, descended further into violence.

Government officials played down the impact of escalating violence in Thailand’s capital, where at least 36 people have died in the past four days, on Cambodia’s tourist trade.

However, anecdotal evidence from operators in the Kingdom show the number of international travellers visiting Cambodia has declined heavily in recent weeks.

Until recently, Phnom Penh-based agency AOT Travel was used to some 60 guests arriving to Cambodia from Thailand each week, its president Chin Thim said Monday.

But last week the agency saw close to no visitors arriving from Thailand, he said, and travellers heading out of Cambodia to its neighbour also dropped dramatically.

“Up to 80 tourists used to book flights to Bangkok each week, but over the last two months our company has had on average five tourists booking flights each week – with no bookings last week,” he said.

“The Thai situation looks more serious, so more tourists will be scared to visit Thailand. It will probably have a further impact on Cambodian tourism in the coming months,” he said.

Chim Tim added that between 30 and 40 percent of tourists visiting Thailand also travel to Cambodia, meaning that cancellations in Bangkok could impact the sector.

Bangkok hotels were less than 30 percent full, about half the usual rate for this time of year, representatives from the Thai Hotels Association told Bloomberg on Monday.

Ang Kim Eang, chairman of the Cambodia Association of Travel Agents, which has 196 agents as members, also said the unrest in Thailand had forced package tourists to cancel trips.

“Some international tourists have bought tour packages to visit both Thailand and Cambodia, and when there is turmoil in Thailand, they cancel their tours, so Cambodia will also lose these tourists,” he said.

However, he said that Cambodia’s tourism sector would be buffered by tourists rerouting through other ASEAN countries such as Vietnam and Singapore, a viewpoint reiterated by government officials.

Cambodia’s Tourism Minister, Thong Khon, agreed Monday that the violence in Bangkok is affecting the tourism industry, but said he believes it is not a serious problem.

He cited figures showing foreign visitors to the Kingdom increased 10.55 percent in the first four months of this year, compared to the same period last year.

“If there was no unrest in Thailand in recent months, the sector would have increased even further, but despite the unrest, our tourism has not been seriously affected,” he said.

“Tourists are changing their plans to enter Cambodia through other gateways instead of Thailand,” he added.

Thong Khon said that Thailand was the main tourist gateway into Cambodia before the political crisis began.

He estimated that in the past, around 37 percent of tourists entered via Thailand, with Vietnam a close second with around 32 percent.

He said the trend has shifted, with Vietnam now bringing 35 percent of tourists and Thailand decreasing to 33 percent, followed by countries such as Singapore, Malaysia and South Korea.

The minister remained confident that overall tourist numbers would increase this year, with projections based on the first four months data forecasting 2.4 million tourists will visit the Kingdom this year, up from 2.16 million last year.

He added that there is no way of firmly evaluating how hard the Thai conflict has impacted the industry in recent weeks.

Shares in Thailand’s tourism-allied companies fell more than 4 percent on average on the Thai Stock exchange Monday, according to Bloomberg.

Share value for Thai Airways International, which runs flights into Cambodia, had dropped 4.7 percent to 25.25 baht (US$0.78) by 10am.

Airports of Thailand, the nation’s biggest airfield operator, fell 3.6 percent to 33.75 baht. Minor International, the largest hotel and fast-food restaurant operator, slid 4 percent to 9.7 baht.

Cambodia 'stands to lose B40bn [~US$1 bn]' income

10/11/2009
Bangkok Post

Cambodia could lose 30 to 40 billion baht in tourism income as the latest conflict with Thailand is driving Thai and foreign tourists away, Apichart Sangka-aree, an adviser to the Association of Thai Travel Agents (ATTA), said on Tuesday.

“On the tourism front, Cambodia will face stronger negative impact from the dispute than Thailand.

''European tourists are now refraining from visiting Cambodia’s Angkor Wat and are instead visiting the Northeast of Thailand, which has a similar culture and tourist attractions,'' Mr Apichart said.

Charoen Wang-ananont, chairman of the Thai Travel Agents Association (TTAA), took the same tone, saying 95 per cent of Thai tourists who had booked tour packages to Cambodia in advance have now cancelled or delayed their trip.

“We found that 20 per cent of them changed their destination to Laos and another 10 per cent to Burma,” Mr Charoen said. The tourist attractions that coincidently gained benefits from the conflict included Luang Prabang, Vientiane, Savannakhet and Champasak.

More than 600, 000 Thais visited Cambodia last year and they spent about 7,000 baht each, while only 60,000 Cambodian traveled to Thailand, according to the TTAA chairman.

Catch me if you can

November 10, 2009
The Nation

Bureaucratic moves afoot to request Thaksin's tradition

The move to seek the extradition of ousted prime minister Thaksin Shinawatra was proceeding at snail's pace through the Thai bureaucracy yesterday even as he was about to land in Phnom Penh for his first lecture on economic matters on Thursday.

Although Cambodia has vowed to throw out any extradition request, Bangkok seems determined to test that resolve. But Thailand's first hurdle could be its own bureaucratic clumsiness.

Sirisak Tiyaphan, chief prosecutor for foreign affairs at the Office of the Attorney-General (OAG), said documentation for the extradition had already been prepared and that all that was needed to proceed was an official request from the Foreign Ministry.

"As soon as we know Thaksin's exact address in Cambodia, we will submit a document requesting extradition to Phnom Penh, in accordance with the extradition treaty between the two countries," he said.

However, Foreign Ministry spokeswoman Vimon Kidchob said the ministry was awaiting the arrest warrant and related documents from the OAG.

"Once we obtain the document, we'll submit it through our embassy in Phnom Penh to seek extradition," she said.

Thailand has sent the same request to Fiji, Nicaragua and the United Arab Emirates but failed to establish an extradition trail in any of those countries so far.

Thailand and Cambodia signed an extradition treaty in 1998, but Cambodian Prime Minister Hun Sen has said he will not extradite Thaksin to Thailand, because the treaty prohibits sending anyone to face punishment for a political offence.

Thaksin was appointed Hun Sen's economic adviser and is scheduled to give a lecture in Phnom Penh on Thursday.

Thaksin's appointment has worsened tensions between Thailand and Cambodia. The neighbours have already been at loggerheads over the Preah Vihear Temple since last year.

The two countries have downgraded their diplomatic relations, and Thailand has terminated a maritime memorandum of understanding (MoU) signed during Thaksin's administration in 2001.

The Cabinet today will consider the decision to terminate the MoU.

The diplomatic row may affect financing for Highway 68 from Surin to Siem Reap, as a Bt1.4-billion tranche is due for disbursement in the middle of next year, said Neighbouring Countries Economic Development Cooperation Agency director Akarasiri Buranasiri.

"Still, it depends on the Thai government's policy. In the worst case, all funding will be stopped."

Cambodia could lose Bt30 billion to Bt40 billion in tourism revenue because of the conflict, which has encouraged European tourists to turn to northeastern Thailand instead, said Apichart Sankary, honorary adviser to the Association of Thai Travel Agents.

Thai Travel Agents Association president Charoen Wangananont said 20 per cent of Thai travellers who had cancelled packages to Cambodia had switched to Laos and 10 per cent to Burma. He said Cambodia stood to lose more tourism revenue than Thailand, because more than 600,000 Thais visited the country annually, against 60,000 Cambodian visitors to Thailand. Parliament yesterday failed to discuss documents for a joint boundary-demarcation commission. The government, opposition and Senate whips agreed to propose postponement of the discussion, because talks now could be sensitive.

Cambodian luxury hotels witness drop in occupancy

Friday, 30th October 2009
Source : HVS International

Luxury hotels in Cambodia have witnessed a double-digit drop in occupancy due to the global economic crisis.

Some hotels in the market have reported a decline of approximately 10% in occupancy rate in the 2009 autumn period compared to the same period in 2008.

In comparison, Siem Reap, Cambodia's main tourist destination, has suffered more than the capital city, Phnom Penh, as guests usually stay for a longer period in Phnom Penh.

Other than the financial crisis, the Influenza A(H1N1) outbreak and the Thailand border dispute have also affected the market.

As Losses Mount, Plans To Help Economy Emerge [-Where's that loud mouth PM who said that Cambodia will not be affected by the economic crisis?]

Kong Chandararoth, president of the Cambodian Institute of Economic Study and Development.

By VOA Khmer, Reporters
Reports from Phnom Penh & Washington
28 April 2009

Cambodia’s four main economic drivers have sustained multi-million dollar losses so far this year, despite insulation from the financial markets, a leading economist said Monday.

A report released by the International Labor Organization released Monday shows losses of $280 million in garments, $260 million in tourism, $180 million in agriculture and $45 million in construction.

Despite those losses, Cambodia remains somewhat insulated from the global financial crisis, said Kong Chandararoth, president of the Cambodian Institute of Economic Study and Development.

“Our country is not close to the financial market, so that does not have an impact as serious as other countries,” he said, as a guest on “Hello VOA.”

Cambodia’s agriculture has also made the global financial downturn easier that industrialized countries, he said.

Organizations like the International Monetary Fund and Asian Development Bank have warned that Cambodia’s economy will shrink this year, thanks to the financial crisis.

However, Kong Chandararoth said such predictions were “too dark about Cambodia,” and he predicted economic growth around 5 percent for 2009.

Cambodia’s situation is further different from other countries, he said, because it does not have a stock exchange or other financial markets, which have been hard-hit by the collapse of the US financial market.

Meanwhile, the government has prepared a package to restore the economy, including tax exemptions, tourism promotion, and help for construction, agriculture, garment factories and other investments.

The government announced Tuesday it will release $25 million to the agriculture and garment sectors, in an effort to mitigate the effects of the global downturn.

The money—$18 million to agriculture and $7 million to garments—will be used to increase farm production and help train people who have lost their jobs thanks to the slowdown.

Government officials made the announcement during the semi-annual donors meeting on Tuesday.

Toothache in Bangkok ... but it hurts Phnom Penh mouth instead

Thai political crisis 'disastrous' for Cambodian tourism

Thu, 27 Nov 2008
DPA

Phnom Penh -The seizure of Thailand's main international airport by protesters Wednesday left thousands of travelers stranded in Cambodia and will hurt the country's already beleaguered tourism sector, officials and tourism industry leaders said Thursday. Director of Civil Aviation Chea Aun said up to seven Thai Airways, Bangkok Airways and AirAsia flights from Phnom Penh to Bangkok were cancelled Wednesday, leaving more than 1,000 business people and tourists stranded in the capital.

"There were also five Thai Airways flights cancelled from Siem Reap to Bangkok, which grounded a few hundred passengers there," he said.

Chea Aun said the aviation authority did not know when flights would resume and could not comment on the likelihood of Bangkok's Suvarnabhumi Airport reopening.

President of the Cambodian Association of Travel Agencies Ho Vandy said thousands of foreign tourists had been left without accommodation in Phnom Penh and Siem Reap.

"Many tourists who were supposed to check out of hotels on Wednesday could not stay because the hotels had no more rooms available," he said.

"This is big problem, but the travel agencies are working together to find accommodation for these people."

Ho Vadny said ongoing political tensions in Bangkok had made a "serious impact" on Cambodia's previously buoyant tourism sector.

Tourist arrivals in Cambodia have slumped in recent months amid fears over an ongoing border dispute between Thailand and Cambodia and the volatile political situation in Thailand, which is regarded as a tourism gateway to its South-East Asian neighbours.