In the first part of this piece, we looked at the growth in international tourism numbers visiting Cambodia as well as the hopes of growth being pinned on more air routes to new regions.
As an update over the last week with regards to India, IndiGo Airlines and Cambodia Angkor Air have now both received official approval to operate direct flights but no date has been set and both still need to fulfil certain requirements.
ASEAN - Cambodia Flights (Continued)
Within the region, competition is heating up for premium and low-cost airlines in 2024.
AirAsia’s Cambodia unit, which was initially planned to launch in 2023, is now expected to only commence operations in the middle of 2024 in the Kingdom but they could be a launching pad to several new destinations in the ASEAN region, initially. AirAsia Cambodia confirmed it would be operating a Phnom Penh-Macau route. (Cambodia Angkor Air also confirmed it would operate routes between Phnom Penh and Hong Kong increasing to three flights from April 2024).
British Airways has announced that it will again offer direct flights to Malaysia and Thailand from London. Cambodia has never had a direct flight to the UK and there have been recent efforts to increase economic and trade between the two regions.
Targeting British and European airlines well in advance of the potential 2025 opening of the Phnom Penh Airport should be high on the agenda. British Airways has said the return of these routes to Southeast Asia is its “commitment to expanding its network to Asia post-pandemic”.
In total, 65,000 British nationals visited the Angkor Temple complex near Siem Reap in 2023 despite there not being any direct flights between the UK and Cambodia.
Scoot, the low-cost subsidiary of Singapore Airlines, has taken on new aircraft to expand its network of flights in SEA while Jetstar Asia has also announced the resumption of old routes and added new ones to the Philippines (Clark) and Thailand (Krabi) from its main hub in Singapore. They currently have routes to Phnom Penh from Singapore.
Australia - Cambodia Flights
Prime Minister Hun Manet, on a site inspection of the under-construction Techo International Airport, confirmed that flights to Australia from the Kingdom were on the horizon. He had recently visited Melbourne as part of the 2024 ASEAN-Australia Special Summit, and the trip also saw him meet several business leaders, with the Cambodia-Australia Business Council being formed.
The PM said an agreement on the opening of air relations between the two countries has been signed and that direct flights will take place as the number of passengers increases, as all travel from Australia To Cambodia currently passes through other countries (as is the case with most long haul international flights),
In addition, the Cambodia Chamber of Commerce (CCC) & the Victorian Chamber of Commerce and Industry (VCCI) signed an MoU to develop the exchange of trade and investment information as well as implement referral mechanisms.
Cambodian Commercial Aviation Expansion
The Commercial Aircraft Corporation of China, Ltd. (COMAC) conducted flight displays of its ARJ21 and C919 commercial aircraft in Cambodia in March 2024 - trying to appeal to the local airlines which currently have small fleets but will be hopeful of expanding in the future and will need larger aircraft to fly further.
The two aircraft were also showcased at the Singapore Airshow in February 2024 and Boeing and Airbus have acknowledged the manufacturer as a potential threat in the commercial airline space - this was the first time these aircraft were showcased outside of China.
Marketing Cambodia Is Open For Business And Tourism
There needs to be improved and better-coordinated marketing for the country as a tourist and business destination. The very foreigner-friendly visas and the relaxed business and foreign property ownership regulations in the Kingdom offer a competitive advantage.
At ITB Berlin 2024, which the government had previously asked Cambodian vendors to attend, Travel Asia a la Carte told TTG Asia that there is increased interest from European travelers who want to stay longer and not just add-on the excursion to other visits in the region. One of the areas that could be better targeted are the local cultural festivals but tour operators claim that the schedules for these need to be made known well in advance.
The “Visit Siem Reap 2024’ campaign for example, under the guidance of the restructured MoT, aims to promote the region, look to add connecting flights between major tourist destinations, and create an attractive and stimulating tourism environment in 2024.
- In the short term, Siem Reap hosted the 8th River Festival 2024 in mid-March 2024 and it held the Giant Puppet Project in February 2024.
- The 2024 launched ‘BUILD Plus 3Ds” which aims to boost tourism has seen some support from US firms such as Mastercard, VISA and META Facebook, said the Ministry of Tourism.
- The Tourism and Trade Fair 2024 is planned to be held from 25th-30th March 2024 in Sihanoukville under the theme “Tourism – Opportunity for All”.
Aquatic Tourism - Ferries & International Tourism
In the mid to long term, there will also be more options for the MoT to strategise aquatic tourism, which involves tourism activities associated with water such as cruise ships and river cruises.
Sihanoukville has seen as many as ten cruise ships dock at the coastal port between January and February 2024 with more than 8,000 passengers and tourists, reported the Preah Sihanoukville Tourism Department.
The expansion of Cambodia’s port network, the upcoming Funal Techo Canal and the increased return of cruise ships to Sihanoukville in 2024 all hint at untapped potential - and an age group which potentially could have additional income and could be looking at holiday homes and other property assets.
Cambodia’s Eco-Tourism Appeal
Finally, eco-tourism is forming a bigger and better part of the attraction for visitors to Cambodia, although many of the current offerings still need improvements and offer a wider price range - with several publicised retreats on the pricier side - however from an investment perspective, attracting more visitors with expendable and higher income, certainly won't be frowned upon.
The Sydney Morning Herald article mentioned last week references amazing luxury retreats such as Shinta Mani Wild, and described how the Kingdom is now trying to compete with higher-end luxury offerings. The country wants to be “perceived as a viable alternative to neighbouring Thailand or Vietnam, a new, enticing frontier for high-end travellers.”
At the 2023 Destination Mekong Summit 2023, panellists said that in terms of future trends and sustainable travel, innovation and creativity in destination marketing, with an emphasis on authentic experiences were crucial.
With further horizons in mind, if wealthier visitors such as ultra-high-net-worth individuals (UHNWI) are looking towards Cambodia as a holiday destination, luxury accommodations and homes might need to cater for this niche market.
Private jets, first-class cabins, and even in the future eVTOL (electric vertical take-off and landing) taxi services could all be a reality with a local firm confident that a vertiport (a small airport terminal accommodating these aircraft) is a real possibility for one of the phased developments at the Techo International Airport. The latest reports indicate the international Phnom Penh airport will be operational by mid-2025 and it will be one of the largest in the world.
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