Cambodia’s Tourism Crossroads: Industry Eyes Revival, But Key Hurdles Remain

Cambodia’s tourism industry, a vital pillar of its economy, is navigating a difficult yet promising path to recovery. At HoSkar Night Phnom Penh 2025, held at the Rosewood Hotel in early June, a panel of senior hotel executives, developers, and industry insiders provided a frank assessment of both the challenges and emerging opportunities for one of Southeast Asia’s most dynamic but vulnerable tourism markets.

The event took place against a cautiously optimistic backdrop. The high season, from October to March, showed signs of improvement, buoyed by infrastructure upgrades – including the ongoing construction of Phnom Penh's new international airport and renewed flight connections. Emirates' resumption of its Dubai–Siem Reap route on June 3, 2025, is also seen as a signal of international confidence returning.

Yet, even as indicators point to a gradual revival, industry leaders warn that without structural reform and strategic repositioning, Cambodia risks falling further behind regional peers like Vietnam and Thailand.

Branding Crisis and Labour Shortages Cloud Recovery

Despite improvements in infrastructure, panellists pointed to Cambodia’s deteriorating international image as a major obstacle to tourism recovery.

"We need to fix the Cambodia brand," said Daniel Simon, Managing Director of Rosewood Phnom Penh. 

He cited growing unease among tourists and prospective hospitality workers over scam-related news and negative headlines, which have contributed to Cambodia’s exclusion from many travelers’ itineraries.

Joseph Colina, General Manager of Raffles Grand Hotel d'Angkor, said tourist arrivals to Siem Reap plummeted from 2 million in 2019 to under 940,000 in 2024.

“The luxury market in Siem Reap is doing quite well, there are a number of reasons why it's not bad, but the volume of travellers is certainly not back in Siem Reap,” he said.

Equally pressing is the talent shortage. Sarah Moya, Cluster General Manager at Courtyard by Marriott, said that much of Cambodia’s skilled hospitality workforce left the industry during the pandemic, and many have yet to return.

“We lost a lot of great people, now the challenge is bringing them back and retraining a new generation,” she said.

Moya explained that while Phnom Penh has seen measurable growth – 535,000 arrivals between January and February – the hospitality sector does not fully feel the impact due to its heavy reliance on business travel, which remains sensitive to factors like tariffs and security concerns.

Despite the lack of strong business growth, she noted that the number of hotel rooms continues to increase, with new hotel openings like Novotel, Shangri-La, and Wyndham. This imbalance between room supply and demand mirrors past issues in Siem Reap, where hotel development outpaced tourist arrivals.

Sokoun Chanpreda of HMD Asia added bluntly: "We're still picking up the pieces from post-COVID times. Some hotels are struggling, others are reviving, and some are just beginning. But we're struggling very well."

Destination Repositioning: Siem Reap and Sihanoukville Seek New Identities

Panelists stressed the need to rethink Cambodia’s key tourism hubs. While Angkor Wat remains the country’s most iconic draw, stakeholders say Siem Reap must diversify.

"Siem Reap is not just about ancient temples," said Sunnaline Himyon from Sokhalay Angkor Hotel. "We can develop meditation retreats, food tourism, marathons – there’s much more potential."

Rocky Khou of the Cambodia Hotel Association also pointed to a critical marketing gap, saying, "Everyone knows Angkor Wat, but few understand Siem Reap as a full destination. That needs to change."

Meanwhile, Sihanoukville is undergoing what some call the most ambitious transformation in Cambodia’s coastal tourism history. Long plagued by unchecked casino development and environmental degradation, the port city is now positioning itself as both an industrial zone and a luxury tourism hub.

Melita Koulmandas of Song Saa Collective said the surrounding islands, particularly the Koh Rong Archipelago, offer vast eco-tourism opportunities.

“There's so much incredible beauty out there that is so unknown,” she said. “I think by repositioning [the islands] as a beautiful, natural wonder, as well as this exciting place, would be fantastic. I think it needs to be amplified some more."

Sihanoukville’s Dual Identity: Industry Meets Leisure

Michel Cassagnes, Managing Director of Archetype Group for Cambodia, Laos, and Vietnam, said the shift in Sihanoukville is already visible.

"It’s becoming Cambodia’s industrial capital,” he remarked. “The BYD car factory is under construction, and we expect vehicle assembly to begin by early next year."

David Richard, Senior Director of Hospitality Investment & Development at Canopy Sands Development, told B2B Cambodia that the government’s coastal redevelopment vision is gaining momentum.

"There’s clear political will to elevate the coastline into a sustainable, premium tourism destination. We’re seeing major F&B and hospitality brands from the Middle East and Asia show interest," he shared.

New projects he highlighted included:

• Times Square 10 Otres – a premium residential development along the coast
• Bay International Convention Centre (BICC)
• Cambodia’s first Greg Norman-designed golf course
• Hotel 101 – a hospitality venture with business travel potential

"With Sihanoukville's growing industrial base, we see room for business-oriented hotels as well," added David Roberts of Fusion Hotel Group.

Looking Ahead: Regional Competition and Digital Strategy

As Cambodia attempts to rebound, it faces stiff competition.

 "Vietnam had a record-breaking first four months this year," said Roberts. "It’s gaining market share from Thailand, and Cambodia must act fast to stay in the game."

Sylvain Colle of The Bale Phnom Penh underscored the need for professional destination branding and stronger digital marketing campaigns, saying, "We need to change how Cambodia is perceived globally. Communication is key."

Daniel Simon echoed the sentiment with a metaphor:

We’re an old oil tanker – it will take time to turn around, but we must start steering now.

Cambodia’s Long Road to Recovery

While short-term recovery remains fragile, most panelists agreed that long-term potential is intact if reforms are made. Michel Cassagnes offered a cautiously optimistic view from the design and construction side.

“We were still building during COVID. While 2025 may be slow in terms of profit, I believe we’ll see growth again by 2026. Long-term, I’m very optimistic about Cambodia,” he said.

As the sector charts its recovery, four imperatives stand out:

• Rebranding Cambodia’s global image;
• Rebuilding and reskilling the tourism workforce;
• Diversifying offerings beyond temples and casinos;
• Investing in infrastructure that supports both leisure and business travel.

“Until we collectively change the mindset of travelers in Southeast Asia, Europe, the U.S., China, and Russia about what Cambodia really is, we’ll continue to struggle,” David Simon concluded.