|Monks cross a street in front of the |
Royal Palace in Phnom Penh.
Photo: Jack Kurtz / Zuma
The Royal Palace in Phnom Penh has just opened its doors for the day and Chinese tourists are already arriving by the busload, sporting bumbags and armed with expensive camera equipment as they queue for the first tour of the morning.
In Cambodia, these groups, like the many that will follow it, are indicative of the changing face of an evolving industry. Tourism is a key driver of Cambodia’s economy, contributing approximately one quarter of GDP last year, according to a report from the World Travel and Tourism Council.
Once a destination popular with adventurous Western visitors, when Cambodia’s government looks ahead nowadays its focus is increasingly placed on one nation: China.
Whereas many Europeans are tightening their belts when it comes to spending, China has millions of people who, for the first time, have the money and desire to get out and see the world. Last year, China overtook Vietnam to become the number one source of visitors to the Kingdom. And given its close relations with Beijing, Cambodia is in a prime position to cash in.
According to Cambodia’s Ministry of Tourism, the country welcomed close to 830,000 Chinese visitors in 2016 alone, up almost 20% from the previous year and almost halfway to the government’s goal of attracting two million Chinese tourists annually by 2020. Figures from the China Outbound Tourism Research Institute (Cotri), an independent research organisation based in Hamburg, estimate that about 270,000 Chinese tourists visited Cambodia in the first quarter of 2017, putting it on track to top a million this year.
Men Phearom, director of planning at the Ministry of Tourism, said that the government had implemented a policy of promoting mainly Chinese visitors as part of a wider economic strategy with Beijing.
“Through the strong relationship of both countries, it brings together the Chinese investors and Chinese tourists in Cambodia.” he said. “So we have to catch this opportunity to attract more tourists and tourism investment.”
All signs point to a significant increase in tourist traffic coming into the country, but all visitors are not equal when it comes to the money and time they spend, and adapting to a Chinese-driven market could mean major changes to an industry that has been largely built around the demands of visitors from the West.
“As a hotelier I will of course be happy to see the overall numbers [of tourists] go up,” said Pok Ratha Ming, senior sales manager at the Phnom Penh Hotel, a popular spot for Chinese visitors.
He does have reservations, though.
“Chinese and European tourists are different,” explained Ming. “The Chinese come to Cambodia for four days. They stay in Angkor Wat for three days and Phnom Penh for maybe one. The Europeans spend longer and spend more.”
Wolfgang Georg Arlt, the director of Cotri, said that despite the huge figures involved, a surge in Chinese tourists needs to be managed carefully.
“The Chinese are the biggest source of the growth of global tourism figures, but this does have negative effects,” said Arlt, citing the island of Palau in the western Pacific ocean as an example.
Known as a diver’s paradise, the island was until recently a hotspot for American, Australian and European diving enthusiasts. Then the “whole atmosphere changed”, said Arlt, when Chinese tourists started to arrive en masse, thanks to cheap deals on chartered flight package tours.
“The divers put… money into the local economy,” said Arlt. “Chinese tourists pay money to Chinese tour operators.” If the tourist dollars are, as often happens, also funnelled into Chinese-owned hotels and souvenir shops, this often minimises the benefits to the local economy while simultaneously making the destination less attractive to visitors from other countries, who no longer feel catered for.
“So all of this is not really benefitting the local Palau people. They get this big group of tourists who are actually endangering the traditional customer base,” said Arlt. “I used to be asked how to get more Chinese tourists. Now I’m asked: ‘How do we get better Chinese tourists?’”
In Phnom Penh, as in Palau, local traders say that money from Chinese tourists tends to bypass them.
“We get very little money from Chinese customers,” said Pheap, a motorbike-taxi driver based outside the capital’s gleaming Royal Palace. “It makes us sad, because we see big buses of Chinese tourists come who have a lot of money and we don’t see any of it.”
Nearby, another driver, named Sothear, took a break from teasing his friends by stealing their flip-flops to lament the drop off in visitors from the West.
“Most people we see coming to the palace are Chinese and Vietnamese. Five years ago it was all Europeans and Australians,” he said. “Now we have about 40% less Europeans than before. I don’t care what nationality, we will take anyone, but we don’t really get money from the Chinese tourists. They come mostly on a bus.”
While economic benefits often fail to trickle down to tuk tuks and motorbike drivers, opportunities are opening up elsewhere. A taxi driver based outside NagaWorld casino in Phnom Penh, who gave his name only as ‘Mr Black’. “Many people worry that China is taking over our country, but we are happy because it is more customers,” he said. “Most of our customers are Chinese or Western, but we make most money from Chinese… Chinese customers tip more than Europeans.”
However, ‘Mr Black’ did have one gripe: having to pay a large portion of his income to the Chinese-owned taxi firm he works for.
While the pivot to China is currently a mixed blessing for the tourism sector, what it will mean for the industry’s future remains uncertain and potentially fraught by over-dependence on one source of tourists.
China has been known to use tourism as a soft power tactic in the past, with Beijing stopping tour groups from visiting Taiwan and South Korea during periods of political tension, slashing both countries’ tourism figures by about 40% in the process. The Philippines, on the other hand, has already seen a rise in Chinese visitors since President Rodrigo Duterte made moves to warm relations with Beijing upon taking office last year.
“China uses outflows of tourism as a tool to either curry favour or punish foes. What we’re seeing in Cambodia at the moment is the former, with China now the country’s main source of tourists,” said Miguel Chanco, regional analyst for the Economist Intelligence Unit. “Outbound travel from China is strongly influenced by political factors, as Beijing can throw up informal bureaucratic obstacles that impede visits by its citizens to nations that are out of favour.”
With Cambodia very much in China’s good graces now and for the foreseeable future, it would appear wise to use this momentum to invest in other areas of the tourism industry.
The UN named 2017 the international year of sustainable tourism, with the impact of tourism around the world becoming a growing concern for travellers and destinations. China is not a market normally associated with sustainability but, according to Arlt, eco-tourism could prove to be a huge draw for Chinese visitors.
“If you go to China, you can do everything except breathe,” he said. “If you live in Shanghai, kids will probably never see a goat or sheep except on their plate. They will almost certainly never have seen the Milky Way… But in Cambodia, after culture, nature is the draw for Chinese tourists.”
|Tourists take photographs at Angkor Wat in 2007.|
Photo: Nigel Dickinson
Read full article at Southeast Asia Globe: http://sea-globe.com/cambodia-future-tourism/