CAMBODIA ECONOMIC UPDATE
OCTOBER 2017
CAMBODIA CLIMBING UP THE MANUFACTURING VALUE CHAINS
EUROPEAN UNION
JANUARY 18, 2018
Main findings
2
• Growth remained strong, expanding at 7.0 percent in 2016.
It is projected to ease slightly, to 6.8 percent in 2017.
• Clothing & other textile product exports have moderated,
partly offset by gradual emergence of the exports of electrical
machinery, equipment and vehicle parts. The construction boom
is showing signs of easing.
• Efforts to attract international tourists by the authorities
seem to have paid off, with a marked recovery of foreign
tourist arrivals.
• Growth is projected to remain robust, at 6.9 percent in
2018, boosted by export diversification and underpinned by
healthy FDI inflows and improved global outlook.
• Downside risks to this outlook are slowdown in the
Chinese economy and potential election-related uncertainty.
Growth remained strong but is projected toslightly ease in 2017…
3
0
20
40
60
80
100
120
140
Dec-14 Dec-15 Dec-16 Jun-17
Steel imports
Other materials for construction
Cooling equipment
Cement
Imports of basic construction materials
have moderated. (y/y % change)
Source: Cambodian authorities.
7.1 7.3 7.47.1 7.0 7.0
6.8
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2011 2012 2013 2014 2015 2016 2017/p
Agriculture Indus-garment & footwearIndus-construction Serv-real estateIndus-others Serv-tradeServ-others Taxes less subsidiesGDP growth
Strong growth continued in
2016...(contribution to growth, percent)
Source: Cambodian authorities.
…as garment export growth has moderated,although Cambodia’s share in world market hasincreased.
4
1.1
1.21.3
1.5
1.7
2012 2013 2014 2015 2016
Cambodia's share in the world’s exports of
textiles and clothing accessories rose. (% of
global trade in HS 61 and 62)
Source: UN Comtrade.
Note: HS = harmonized system
-20
-10
0
10
20
30
40
50
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
6-m
2017
Fabric imports
Clothing and other textile products
Source: Cambodian authorities.
Cambodia's exports of clothing and other
textile products moderated. (y/y % change)
This is partly offset by gradual emergence ofthe exports of electrical machinery, equipmentand vehicle & parts…
5
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
2008 2009 2010 2011 2012 2013 2014 2015 2016
Machinery (HS 84)
Electrical (HS 85)
Vehicles & parts (HS 87)
New export products are emerging. (% total
merchandise exports)
Source: UN Comtrade.
Note: the numbers in parentheses are harmonized system (HS)
Rising number (and share) of nontextile and footwear manufacturers in
Cambodia
2012 2017 (Aug)Industrial Classification (ISIC, Rev.
4) Factories
Share
(%) Factories
Share
(%)
Food, Beverages & Tobacco (10-
11-12) 74 8.2 140 8.3
Textile, Wearing Apparel &
Footwear (13-14-15) 673 74.2 1,110 65.5
Paper & Paper Products (17) 17 1.9 46 2.7
Chemical, Rubber and Plastics
(20-22) 60 6.6 124 7.3
Other non-Metallic
Manufacturing (23) 15 1.7 33 1.9
Metallic, Electronic, Electrical,
Machinery, Motor Vehicle, other
Transport Equip (24-25-26-27-28-
29-30) 46 5.1 121 7.1
Furniture (31) 12 1.3 82 4.8
Other Manufacturing (32) 10 1.1 39 2.3
907 100.0 1,695 100.0
Source: Cambodian authorities
Note: International Standard Industrial Classification (ISIC), Rev.4
…while diversification is still incipient,compared to neighboring countries.
6
66
11
1
8
43
44
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
Cambodia Vietnam Thailand
Clothing Machines/elect/vehicles (HS 84+85+87) Footwear
Rubber and plastics (HS 39+40) Mineral fuel & meat prep Others
While expanding, Cambodia’s export diversification remains lagged behind
its neighbors (% share, 2016)
Source: UN Comtrade.
Climbing up the manufacturing value chains,however, is challenged by high electricitytariffs and inadequately educated workforce.
7
0
5
10
15
20
25
Cambodia Philippines Vietnam Myanmar Thailand
cen
ts /
kW
h
Cambodia’s electricity tariff isamong the highest in the region
Large Industry Customers
Residential
Sources: Electricity Authority of Cambodia, 2015; Philippines Energy
Regulatory Commission, 2016; Vietnam Ministry of Industry and Trade,
Decision No. 2256/QD-BCT, 2015; Myanmar Ministry of Electric
Power, 2015; Thailand Energy Regulatory Commission, 2016; De
Ferranti et al., 2016. Latest available data.
0.2
0.6
1.4
1.5
1.6
2.4
3.3
5
6.3
6.7
7.3
7.6
11.7
16.1
28.3
0 10 20 30
Customs and trade regulations
Courts
Tax administration
Labor regulations
Crime, theft and disorder
Electricity
Business licensing and permits
Access to land
Tax rates
Corruption
Transportation
Access to finance
Inadequately educated workforce
Political instability
Practices of the informal sector
2016 2013 2007
Obstacles to firm operation (Percent of firms)
Source: World Bank Group Enterprise Surveys.
Tourism seems to be recovering, led by risingarrivals from China.
8
16.014.9
24.3
17.5
6.96.1
5.0
12.8
0.0
5.0
10.0
15.0
20.0
25.0
30.0
40.0
45.0
50.0
55.0
60.0
65.0
Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16
Arrivals by air (% of total) Total visitors (y/y, RHS)
Tourist arrival growth accelerated, driven by
arrival by air
Source: Cambodian authorities.
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
Jan
-11
Jun
-11
No
v-1
1
Ap
r-12
Sep
-12
Feb
-13
Jul-
13
Dec
-13
May
-14
Oct
-14
Mar
-15
Aug-1
5
Jan
-16
Jun
-16
No
v-1
6
Ap
r-17
Cambodia
Visitors to Angkor Wat
Angkor Wat remains the main attraction
site, although tourists visiting coastal region
rose to 15% of total arrivals. (3mma, y/y)
Source: Cambodian authorities.
Note: 3mma = 3-month moving average
Modest expansion of rice cultivated areasdue to better weather conditions, while yieldgains remain sluggish.
9
-1.00
0.00
1.00
2.00
3.00
4.00
5.00
2.44
2.46
2.48
2.50
2.52
2.54
2.56
2.58
2.60
2.62
2011 2012 2013 2014 2015 2016 2017 (Sep)
Wet rice (million ha) planted
Planted area (percent, y/y, RHS)
Rice cultivated areas increased modestly
Source: Cambodian authorities.
Note: Cultivation of rainy season has not completed yet (up to Sep only)
Consumption, earlier fueled by rapid credit growth (and construction boom), has now eased, subduing inflation.
10
-4.0
-2.0
0.0
2.0
4.0
6.0
8.0
Jan
-10
Jun
-10
No
v-1
0
Ap
r-11
Sep
-11
Feb
-12
Jul-
12
Dec
-12
May
-13
Oct
-13
Mar
-14
Aug-1
4
Jan
-15
Jun
-15
No
v-1
5
Ap
r-16
Sep
-16
Feb
-17
Others Transport sub-index
Food sub-index Housing & utilities sub-index
Y/Y
Inflation declined as food prices moderated
with easing demand. Contribution to 12-
month inflation (percent)
Source: Cambodian authorities.
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
-20
0
20
40
60
80
100
120
Jan
-06
Jul-
06
Jan
-07
Jul-
07
Jan
-08
Jul-
08
Jan
-09
Jul-
09
Jan
-10
Jul-
10
Jan
-11
Jul-
11
Jan
-12
Jul-
12
Jan
-13
Jul-
13
Jan
-14
Jul-
14
Jan
-15
Jul-
15
Jan
-16
Jul-
16
Jan
-17
Credit to private sector
Inflation (RHS)
Credit (which fueled consumption) growth
has decelerated. (Y/Y, % change)
Source: Cambodian authorities.
Continued good revenue collection containeddeficit as rising wage was offset by decliningpublic investment.
11
6.4 7.3 8.27.0 7.0 6.3
4.9 3.9
2.42.4
2.62.1 2.1
1.9 2.52.4
4.84.4
4.3
4.6 5.0 5.7 6.3 7.7
0
5
10
15
20
25
2009 2010 2011 2012 2013 2014 2015 2016e
External fin capital Gov't-financed capital
Wage Non-wage
NSDP (required capital)
… as outlay remained contained with rising
wages being offset by declining capital (percent
of GDP)
Sources: Cambodian authorities and World Bank staff estimates.
Note: e = estimates; NSDP = National Strategic Development Plan
-15
-10
-5
0
5
10
15
20
25
2010 2011 2012 2013 2014 2015 2016e
Revenue Expenditures Fiscal balance
Fiscal deficit continued to gradually
decline… (percent of GDP)
Sources: Cambodian authorities and World Bank staff estimates.
e = estimates
Budgetary dependency on external financingreduced, but Chinese is now the largestcreditor.
12
China, 2,818 , 48%
Japan, 208 , 3%
South Korea, 280 , 5%
Other bilateral, 181
, 3%
Old debt, 635 , 11%
ADB, 1,129 , 19%
WB, 518 , 9%
Other multilateral,
94 , 2%
China became Cambodia's largest
creditor. Outstanding debt by creditor (US$
Source: Cambodian authorities
35.8
32.3 32.7
29.1
23.9
18.6
2011 2012 2013 2014 2015 2016
External finance (% of total public outlay)
Sources: Cambodian authorities and World Bank staff estimates
Cambodia's dependency on external
financing has significantly reduced, thanks to
increased collection.
Rising private and public savings may bemobilized for productive pro-poor and pro-growth investment.
13
-10.0
0.0
10.0
20.0
30.0
40.0
50.0
60.0
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Cambodia Philippines Malaysia
Singapore Thailand Vietnam
Cambodia's domestic saving is rising but
remains relatively low. Gross domestic saving
(% of GDP)
Source: World Development Indicators, the World Bank
-
2.00
4.00
6.00
8.00
10.00
12.00
14.00
2013 2014 2015 2016 June 2017
Government deposits at the banking
system has increased. (Percent of GDP)
Source: Cambodian authorities
While exports remained solid, imports ofvehicles and fuels eased (with moderate creditgrowth)…
14
-50
-40
-30
-20
-10
0
10
20
30
40
50
60
Dec-13 Dec-14 Dec-15 Dec-16 Jun-17
Passenger cars Diesel Gasoline Motocycles
Imports of durable goods and petroleum
products declined with easing domestic
demand. (YTD, Y/Y % change)
Source: Cambodian authorities.
0.00
0.01
0.02
0.03
0.04
0.05
0.06
0.07
2012 2013 2014 2015 2016
Cambodia's export share in percent of
global trade rose. (% of global trade)
Source: UN Comtrade.
…improved confidence boosted FDI andreserves buildup as the current account deficitnarrowed.
15
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
2012 2013 2014 2015 2016
Trade balance FDI Current account balance
Overall external position improved
thanks to solid exports and lackluster
imports. (% of GDP)
Sources: Cambodian authorities and World Bank staff estimates.
-10
-5
0
5
10
15
20
25
30
35
40
45
Dec
-08
Jun
-09
Dec
-09
Jun
-10
Dec
-10
Jun
-11
Dec
-11
Jun
-12
Dec
-12
Jun
-13
Dec
-13
Jun
-14
Dec
-14
Jun
-15
Dec
-15
Jun
-16
Dec
-16
Jun
-17
Riel in circulation Riel deposits Foreign currency deposits
Contribution to broad money growth
accelerated, driven by rising FCD.
Contribution to M2 growth (in percent)
Source: Cambodian authorities.
Credit growth eased, returning to a moresustainable path with introduction of macro-prudential measures (and market conditions).
16
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
Jan
-05
Oct
-05
Jul-
06
Ap
r-07
Jan
-08
Oct
-08
Jul-
09
Ap
r-10
Jan
-11
Oct
-11
Jul-
12
Ap
r-13
Jan
-14
Oct
-14
Jul-
15
Ap
r-16
Jan
-17
GIR (current, million USD)
GIR in months of imports (RHS)
Gross foreign reserves rapidly accumulated
on the back of healthy FDI inflows.
Source: Cambodian authorities.
10.0
15.0
20.0
25.0
30.0
35.0
Dec
2010
Dec
2011
Dec
2012
Dec
2013
Dec
2014
Dec
2015
Dec
2016
Jun
2017
PS deposits Credits to PS
Credit growth has eased, while deposit
growth has edged up. (YTD, y/y %
change)
Source: Cambodian authorities.
Note: YTD = Year-to-date
Riel in circulation rose, while interest rates ofriel denominated loans (and deposits)declined without pressuring exchange rate.
17
3900
3950
4000
4050
4100
4150
4200
4250
0
1
2
3
4
5
6
7
8
9
10
Dec
-06
Jun
-07
Dec
-07
Jun
-08
Dec
-08
Jun
-09
Dec
-09
Jun
-10
Dec
-10
Jun
-11
Dec
-11
Jun
-12
Dec
-12
Jun
-13
Dec
-13
Jun
-14
Dec
-14
Jun
-15
Dec
-15
Jun
-16
Dec
-16
Jun
-17
Riel in circulation (percentage point)
Riel/US$ exchage rate (SA, RHS)
LPCO (and 10% of riels in loan portfolio) may
have contributed to rising riel in circulation.
Contribution by riel in circulation to M2 growth
and riel/US$ exchange rate.
Source: Cambodian authorities and World Bank staff computation.
Note: LPCO=Liquidity Providing Collateralized Operation; SA = Seasonally
Adjusted; RHS = Right-Hand Scale
0
2
4
6
8
10
12
14
16
18
20
22
24
26
Dec
-06
Jun
-07
Dec
-07
Jun
-08
Dec
-08
Jun
-09
Dec
-09
Jun
-10
Dec
-10
Jun
-11
Dec
-11
Jun
-12
Dec
-12
Jun
-13
Dec
-13
Jun
-14
Dec
-14
Jun
-15
Dec
-15
Jun
-16
Dec
-16
Lending rate
Deposit rate
Short-term interest rates of riel
denominated loans (and deposits)
declined, thanks to the initiative to promote
riel and interest rate cap. (% per annum)
Source: The Cambodian authorities.
Credits to the non-tradeable sectors(construction, real estate and mortgage),however, remains strong.
18
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
Dec
-09
Mar
-10
Jun
-10
Sep
-10
Dec
-10
Mar
-11
Jun
-11
Sep
-11
Dec
-11
Mar
-12
Jun
-12
Sep
-12
Dec
-12
Mar
-13
Jun
-13
Sep
-13
Dec
-13
Mar
-14
Jun
-14
Sep
-14
Dec
-14
Mar
-15
Jun
-15
Sep
-15
Dec
-15
Mar
-16
Jun
-16
Sep
-16
Dec
-16
Mar
-17
Jun
-17
Sep
-17
Construction, estate & mortg Manufacturing Wholesale & retail
Hotels and Restaurants Others Agriculture
Total
Credits going the non-tradeable sectors remain strong, while those to the
tradeable sectors have shrunk. Contribution to credit growth by business
Source: Cambodian authorities.
The growth outlook in the medium termremains favorable
19
CAMBODIA: KEY INDICATORS
2016 2017p 2018f 2019f
Output and Prices
Real GDP (% change, yoy) 7.0 6.8 6.9 6.7
CPI (annual avg, % change yoy) 3.5 2.9 3.2 3.5
Public Sector (% of GDP)
General govt domestic revenues 18.4 18.4 18.5 18.8
General government expenditures 21.4 23.0 23.8 23.9
Overall fiscal balance excluding grants -3.0 -4.5 -5.3 -5.1
BOP and External Debt
Current account balance 3/ -2,041.4 -2,106.4 -2,222.5 -2,382.4
(% GDP) -10.2 -9.6 -9.2 -8.9
Foreign direct investment 2,164.4 2,418.8 2,662.3 2,853.7
External debt 6,522.4 7,427.6 8,551.3 9,535.9
(% GDP) 32.6 33.8 35.3 35.7
Debt service ratio (% exports of g&s) 1.6 1.9 2.1 2.2
Foreign exchange reserves, gross 6,730.8 8,175.4 9,594.3 9,144.7
(months of imports) 5.7 6.3 6.8 5.8
Financial Markets
Domestic credit (Net, % change yoy) 25.8 16.5 15.2 20.8
Short-term interest rate (% p.a.) 11.8 11.7 11.5 11.2
Exchange rate (Riel/US$, annual average) 4,058.0 4,062.0 4,067.0 4,075.0
Memo: Nominal GDP (millions US$) 20,020.2 21,985.2 24,216.2 26,690.5
Sources: Cambodian authorities, IMF and World Bank staff estimates and projection
• Nurturing export diversification by adoptingcost-effective/competitive electricity tariffs.Identifying skills gaps to design courses andprograms that address such gaps, leveraging the2017-25 TVET Policy.
• Further facilitating investment, especiallyinto the tradable sector. This would requirefrom reforms aimed at making it easier forcompanies to start a business, reducing fess andother costs, and improving connectivity.
• Improving access to markets and tourismsupply chains by remote farmers will help asrural households hit by low agricultural prices.Closely monitoring the potential negative impactsof the slowdown of the textile and constructionsectors.
20
Structural reforms to support economictransformation and industrialization
Cambodia’s tourism sector: maximizing potential
21
“Cambodia’s tourism sector: maximizingpotential” – key findings
22
• Tourism is labor-intensive, and Cambodia hasbenefited substantially from the rapid expansionmore than regional peers.
• Asian tourists the largest market (two thirds).China and Vietnam combined accounting for morethan a third of total arrivals.
• Average daily spending and length of staydeclined. Large potential remains as Cambodiareceived only small fraction, 2.4 percent (in 2015).1
• Limited success in diversifying tourismproducts and destinations, while leakages arehigh.
1Note: Of 200 million tourists recorded in 2015, China received 29% (#4), Thailand 15.2% (#11), Malaysia 13.1% (#14).
Tourism receipt, contributed mainly by Asia(China contributed more half of the increase in2016) and Europe.
23
Contribution to tourist arrivals growth by country of
origin during last six years (percent)
2011 2012 2013 2014 2015 2016
Asia 80.1 84.1 83.7 84.6 84.2 62.0
Vietnam 26.7 23.1 20.0 19.6 20.9 -11.6
China 18.6 14.5 16.8 19.2 25.5 56.0
Lao PDR 9.7 15.0 18.9 18.4 13.8 -14.9
Thailand -8.7 4.9 4.2 6.5 8.9 19.9
Europe 14.3 11.3 12.3 11.2 10.1 20.4
Americas 4.9 4.2 3.8 3.9 5.1 15.5
Africa 0.4 0.1 0.1 0.1 0.2 0.8
Middle East 0.3 0.3 0.2 0.2 0.3 1.2
Total 100 100 100 100 100 100
Source: Bank staff calculations using the data from Cambodian authorities.
1.4
6.7
10.7 11
12.813.6 13.5 13.5 13.3
12.2
0
2
4
6
8
10
12
14
16
18
1995 2000 2005 2010 2011 2012 2013 2014 2015 2016
International tourism receipts--direct contribution (% of GDP)
Cambodia (MOT) Cambodia (WTTC)
Thailand (WTTC) Vietnam (WTTC)
China (WTTC)
Source:s Ministry of Tourism (MOT) 2016 & World Travel Tourism Council
Substantial contribution by tourism to job creationand incomes
24
Jobs generated by tourism sector (2016)
Direct contribution Total contribution
Country Jobs
%
share Jobs
%
share
Cambodia 988,000 11.4 2,252,500 25.9
Lao PDR 118,000 3.7 397,500 12.4
Vietnam 1,959,500 3.6 4,003,000 7.3
Thailand 2,100,000 5.5 5,739,000 15.1
China 23,680,500 3.1 69,527,500 9.0
Source: 2017 World Travel Tourism Council (WTTC)
Tourism’s contribution highlights (latest available
years)
Cam
bo
dia
Lao
PD
R
Th
aila
nd
Vie
t N
am
International visitor
expenditure ($ billion) 2.44 0.69 44.6 8.29
Direct contribution to GDP
(%) 12.2 4.3 9.30 4.6
Tourism investment ($
billion) 0.6 0.6 7.0 5.5
Average expenditure per
visitor ($) 655.5 191.7 1488.9 925.3
Average length of stays
(days/nights) 6.3 4.8 9.8 11.3
Average expenditure per day
($) 92.5 76.5 148.1 126.0
Sources: World Travel & Tourism Council. 2017 and World Tourism Organization
Average daily spending and length of stay declinedwith decreasing group travellers
25
Average daily spending has declined
2013 2014 2015 2016
Market share FIT GIT FIT GIT FIT GIT FIT GIT
(%) 41.5 58.5 41.5 58.5 23.2 76.8 82.6 15.1
Average expenditure per tourist (in US$)
Accommodation 148.57 N/A 127.5 N/A 129 N/A 125 N/A
Food & beverage 84.42 N/A 119.43 N/A 123.5 N/A 120 N/A
Local transport 80.04 N/A 65 N/A 64.5 N/A 73 N/A
Package tours 983.46 N/A 345 N/A 355 N/A 342.5
Shopping 94.35 180.11 90 120 88.7 118 85 115.4
Others 79.03 101.07 80 100 79.5 101 75.5 95.5
Total 486.4 1,264.6 481.9 565.0 485.2 574.0 478.5 553.4
Average daily
spending 120.76 93.48 95.1 92.5
Source: Annual Tourism Statistics Reports, 2013-16, Ministry of Tourism
FIT: Free Independent Travelers
GIT: Group Inclusive Travelers
The overall development of the tourism sector isdecelerating
26
0
1
2
3
4
5
6
Businessenvironment
Safety & security
Health & hygiene
Human resources& labour market
ICT readiness
Prioritization ofTravel & Tourism
InternationalOpenness
Pricecompetitiveness
Environmentalsustainability
Air transportinfrastructure
Ground and portinfrastructure
Tourist serviceinfrastructure
Natural resources
Cultural resources& business travel
Thailand 2017 Vietnam 2017Cambodia 2017 Cambodia 2015ASEAN 2017
While overall policy & strategy drives the
sector, air and ground transport, cultural
resources and ICT readiness are the
Source: Travel & Tourism Competitiveness Index 2015 & 2017
Note: Score varies from 0 (worst) – 7 (best)
-20.0
-10.0
0.0
10.0
20.0
30.0
40.0
50.0
60.0
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Rooms (y/y % change)
Tourists (y/y % change)
Travel agents' offices (y/y % change)
Growth of tourist arrivals, accommodation
and travel agents is decelerating
Source: Annual tourism statistical reports, Ministry of Tourism
Insufficient connectivity to secondarydestinations although improvements of majornetwork
27
0.3
0.38
0.78
0.67
0.060.11
0.050.1
Cambodia(2014)
Thailand (2009)Vietnam (2009) Philippines(2009)
Road density in selected ASEAN countries
Road Network DensityNR Network Density
Sources: “Overview of Transport Infrastructure Sector in the Kingdom of
Cambodia,” MPWT (2015); and “A Study on National Road (NR)Traffic
Safety Master Plan in the Social Republic of Vietnam Until 2020,” JICA (2009).
46.9
53
36.4
60
53.1
43.1
33.3
70
6.42.4
8.4
70
Share of int'lvisitor arrivals
(n= 4.5million)
Share of int'ltour
campanies (n=604)
Share of hotelroom (n=
32,660)
Hoteloccupancy rate
(%)
Tourism services intensity and international visitor arrivals
Phnom Penh
Siem Reap
Preah Sihanoukville
Sources: Annual Report on Tourism Statistics 2016, Ministry of Tourism &
New Crossroads Asia. 2015
Reducing leakages needs to further enhancetourism receipts
28
Potential Net Income Contributions from Tourism in 2020
Projected
Internationa
l Visitor
Arrivals
Projected
Expenditure
($ billion)
Projected Income
with 24% Foreign
Exchange Leakage
Factor
(U$ billion)
Projected Income
with 18% Foreign
Exchange Leakage
Factor
(U$ billion)
Cambodia 7,000,000 4.503.42 3.69
Lao PDR 4,700,000 0.800.61 0.66
Myanmar 7,500,000 10.107.68 8.28
Viet Nam 10,500,000 19.00 14.44 15.58
Sources: Tourism sector assessment, strategy, and roadmap for Cambodia, Lao PDR, Myanmar, and Vietnam (2016-2018), ADB
“Cambodia’s tourism sector: maximizingpotential”- key messages
29
Developing protected area tourism with high-value products
(wildlife viewing destinations), while high-value services which can be
established around existing products. Developing business and events
tourism in a number of areas
Improving infrastructure and connectivity, given Cambodia’s very
low ranking on ground infrastructure,
Addressing leakages can be initiated by assisting producers (and
providers) of food, crafts, and other local goods (and services) to
access tourism value chains (boosting overall spending in destinations).
Expanding/upgrading skills, while strengthening public-private
partnership. A set of intervention measures could be introduced in
main hubs: Phnom Penh, Siem Reap and Sihanoukville.