Cambodia Tourism: Toward ASEAN Integration Director General of Tourism By: HE. NEB Samouth Director General of Tourism

OUTLINE Global and Regional Tourism Cambodia Tourism II. Cambodia Tourism III. Tourism and ASEAN Integration IV. Development Strategies V. Perspective on Think Tank The presentation is divided into 5 parts: The first part will concentrate on the overview of Cambodia tourism, especially its potentials in attracting tourists. The second part will describe about statistic performance for world, ASEAN and Cambodia tourism for the year 2010. The third part will focus on the Cambodia tourism development strategy. The fourth one will show the potential of investment in Cambodia tourism sector. And we will finish our presentation by doing a brief conclusion.

I. Global and Regional Tourism This part, the overview of Cambodia tourism, will provide, ladies and gentle men, the diversified tourism potential in Cambodia.

Tourist Arrival

Tourist Arrival

Why tourism matters?

Outbound Tourist

Projection for 2014

Projection 2020 & 2030

Tourist Arrival International tourist arrivals to increase by 43 millions a year on average

Tourist Arrival Emerging economy destinations to surpass advanced economy destination in 2015

Tourist Arrival to ASEAN

Tourist Arrival to ASEAN

II. Cambodia Tourism This part, the overview of Cambodia tourism, will provide, ladies and gentle men, the diversified tourism potential in Cambodia.

Government Policy Cambodia tourism is: Based on its rich in historical, cultural and natural resources that are good potential for tourism development. The Government of Cambodia has determined the tourism of Cambodia is Cultural and Natural Tourism. In this regard, Cambodia tourism development is done in a sustainable and responsible manner by considering economic, social and environmental effects. Tourism in Cambodia played very important role, the government has considered its as one of the top ten priorities sector in national economic development. It has created about 300,000 direct employments and become a major generator of revenue for national economy (more than 14% of GDP). - After White Gold (rice), Cambodian government has considered tourism as Green Gold, contributing to the development of Green Economy and resolving the problem of climate change. Cambodia tourism is: Culture and nature-based tourism Developed in sustainable and responsible manner A main economic sector Green Gold contributed to the development of Green Economy

Economic Contribution Tourism One of the four main pillars of economic growth Provide 350,000 jobs Contribute 2,900 million dollars to GDP

Tourism Map Siem Reap Angkor Northeast Phnom Penh & Surrounding Costal Area

Cambodia Tourism Total International Visitors to Cambodia in 2013 = 4.2 M (increased by 17.5%) Source: MOT

Cambodia Tourism Source: MOT

Cambodia Tourism Source: MOT

Cambodia : New Destination & New Opportunity Cambodia Tourism Cambodia is: Cultural and natural destination Emerging destination Cambodia : New Destination & New Opportunity Laws and regulations have been set up in order to strengthen application of our strategy plan. The two firstly concern in this manner are laws and regulations which concern to land management such as : Law on the Land Management, Urban Planning and Construction and land law...etc; and also which concern to environment preservation such as : • Law on Environmental Protection and Natural Resources Management; Law on Fisheries Management and Administration ; Preah Reach Kret on Creation of Protected Natural Areas and Anukrets on establishment of protected forests, natural resources conservations, wildlife protection areas, protected forest for biodiversity conservation ...etc. A key strategy: national tourism diversification with a proper connectivity from cultural tourism site to south-western coastal zone

Vision 4.5 Millions 2015 7 - 7.5 Millions 2020

III. Tourism and ASEAN Integration This part, the overview of Cambodia tourism, will provide, ladies and gentle men, the diversified tourism potential in Cambodia.

ASEAN Tourism Strategic Plan (ATSP) 2011-2015 ASEAN Integration ASEAN Tourism Strategic Plan (ATSP) 2011-2015 ADD GROWTH RATES COMPARED TO OTHER REGIONS GDP growth pa (2013-2023) South Asia: 7.6% Northeast Asia: 6.4% Middle East: 4.8% Latin America: 4.7% North America: 3.4% Jobs South Asia: 2.2% Northeast Asia: 3.1% Middle East: 3.5% Latin America: 2.5% North America: 2.0% Investments South Asia: 6.5% Northeast Asia: 7.3% Latin America: 6.1% North America: 4.4% Exports South Asia: 5.6% Northeast Asia: 5.1% Middle East: 4.5% Latin America: 7.8%

Implementation of ASEAN Tourism Strategic Plan (ATSP) 2011-2015 ASEAN Integration Implementation of ASEAN Tourism Strategic Plan (ATSP) 2011-2015 65 measures (75%) have been completed within respective timelines ADD GROWTH RATES COMPARED TO OTHER REGIONS GDP growth pa (2013-2023) South Asia: 7.6% Northeast Asia: 6.4% Middle East: 4.8% Latin America: 4.7% North America: 3.4% Jobs South Asia: 2.2% Northeast Asia: 3.1% Middle East: 3.5% Latin America: 2.5% North America: 2.0% Investments South Asia: 6.5% Northeast Asia: 7.3% Latin America: 6.1% North America: 4.4% Exports South Asia: 5.6% Northeast Asia: 5.1% Middle East: 4.5% Latin America: 7.8%

ASEAN Integration 1. Tourism Product Development: 130 ASEAN tourism products identified by Member States under four following categories: Nature-based tourism; Cultural and heritage tourism; Community-based tourism; and Cruise- and river- based tourism. Nature-based tourism product: Development of the ASEAN Ecotourism Strategic Plan ADD GROWTH RATES COMPARED TO OTHER REGIONS GDP growth pa (2013-2023) South Asia: 7.6% Northeast Asia: 6.4% Middle East: 4.8% Latin America: 4.7% North America: 3.4% Jobs South Asia: 2.2% Northeast Asia: 3.1% Middle East: 3.5% Latin America: 2.5% North America: 2.0% Investments South Asia: 6.5% Northeast Asia: 7.3% Latin America: 6.1% North America: 4.4% Exports South Asia: 5.6% Northeast Asia: 5.1% Middle East: 4.5% Latin America: 7.8%

ASEAN Integration Tourism Product Development: Cruise and river-based tourism Creation of the “Health and Wellness Tourism” as a new category to the existing grouping of ASEAN tourism products

ASEAN Integration 2. Marketing and Communication: The development of Marketing Strategies Social media marketing Experimental and creative (urban tourism, ecotourism…) marketing strategies Marketing strategies for Indian and Chinese markets ADD GROWTH RATES COMPARED TO OTHER REGIONS GDP growth pa (2013-2023) South Asia: 7.6% Northeast Asia: 6.4% Middle East: 4.8% Latin America: 4.7% North America: 3.4% Jobs South Asia: 2.2% Northeast Asia: 3.1% Middle East: 3.5% Latin America: 2.5% North America: 2.0% Investments South Asia: 6.5% Northeast Asia: 7.3% Latin America: 6.1% North America: 4.4% Exports South Asia: 5.6% Northeast Asia: 5.1% Middle East: 4.5% Latin America: 7.8%

ASEAN Integration ASEAN Tourism standard 3. Quality Tourism: Green hotel, Homestay, Spa and wellness services, Public toilet, Clean tourist city, and Community Based Tourism The adoption of the Declaration on Global Code of Ethics for Tourism.

ASEAN Integration 4. Human Resources Development: The implementation of MRA (Mutual Recognition Arrangement) for tourism professionals The establishment of the Regional Secretariat

ASEAN Integration ATPMC ATPRS NTPB Job Interview Work Permit Country A Country B ATPMC NTPB B NTPB A NTPB ATPRS Matching Matrix Verification Job Opportunities Job Interview Work Permit Job Seeker Registration [CATC]

ASEAN Integration 5. Travel Facilitation and Connectivity As a group, the ASEAN member countries are more open 10% of all tourists arriving in ASEAN in 2014-2016 will need a visa Over the years 2014-2016, the period under analysis, more than 307 million international tourists (cumulatively) are forecast to visit destinations in the ASEAN member states, an average of about 102 million international tourists per year. Under the current status of visa policies in the region, it is forecast that 10.4% (32 million) of these tourists would be required to obtain a traditional visa. Much more open than global openness average (30) and APEC average (44) The Philippines currently ranks number 7 out of 220 countries on the openness scale. Cambodia one of the 3% of countries worldwide that offer its visitors an eVisa.

ASEAN Integration Travel Facilitation and Connectivity UNWTO, 2013

ASEAN Integration ASEAN International Tourism Receipts Visa facilitation policies would bring between 6 and 10 million additional tourists by 2016. The additional tourists would generate US$ 7 billion and US$ 12 billion in receipts By enacting visa facilitation policies, and depending on the facilitation measures introduced, the potential gain in international tourism arrivals for ASEAN member states is between 6 million (low impact scenario) and 10 million (high impact) tourists by 2016. This represents an increase in total arrivals of international tourists between 3.0% and 5.1% above the baseline forecast under current visa policies. The increase in tourism receipts resulting from visa facilitation is the product of the increased international tourist arrivals and the average spending per tourist derived from Tourism Economics’ forecast of international tourism arrivals and receipts in each ASEAN member state. The additional 6 million to 10 million tourist arrivals would generate between $7 billion and $12 billion in additional international tourism receipts in ASEAN member states. International tourism receipts would rise between 2.8% and 4.7% above the $169 billion forecast for 2016 under the current policy regimes.

ASEAN Integration ASEAN Direct Travel & Tourism Employment The additional receipts would create between 187,000 and 367,000 direct industry jobs by 2016 Total job creation could reach between 330,000 and 654,000 jobs by 2016 Job creation in the Travel & Tourism sector is fuelled by tourism spending. The spending of the additional tourists resulting from visa facilitation in ASEAN destinations directly supports jobs in tourism industries, including hotels, restaurants, retail stores, transportation, entertainment and recreation. These direct T&T jobs can be calculated from tourist receipts using WTTC research on internal tourism consumption and direct T&T employment for each ASEAN member state. Tourism sales per employee (direct T&T) are calculated as the ratio of internal tourism consumption to direct T&T employment. Dividing the additional tourism receipts generated by visa facilitation by the (direct) tourism sales per employee yields the estimated impact on direct T&T employment. The additional visitor spending generated by visa facilitation would create between 187,000 and 367,000 additional jobs directly in the tourism sectors of ASEAN member states by 2016. The employment impacts are not limited to tourism industries. Indirect jobs are created through the supply chain of tourism industries and induced jobs are generated as employees spend their incomes in other sectors of the economy. The total T&T employment impacts are derived from WTTC research on total tourism demand and total T&T employment in each ASEAN member state. The ratio of total tourism demand to total T&T employment defines total tourism sales per employee. The increased tourism receipts are divided by the total tourism sales per employee for each economy to calculate the total T&T employment impact of visa facilitation. Total job creation (including indirect and induced impacts) from the additional tourism spending in the ASEAN member states could reach between 333,000 and 654,000 jobs by 2016.

IV. Development Strategies This part, the overview of Cambodia tourism, will provide, ladies and gentle men, the diversified tourism potential in Cambodia.

Strategies 1. Tourism Product Development: Diversification Strategy: Siem Reap – Phnom Penh – Coastal Area – Ecotourism Area River-based tourism, agri-tourism, urban tourism… Modal tourist village, modal tourist pagoda… ADD GROWTH RATES COMPARED TO OTHER REGIONS GDP growth pa (2013-2023) South Asia: 7.6% Northeast Asia: 6.4% Middle East: 4.8% Latin America: 4.7% North America: 3.4% Jobs South Asia: 2.2% Northeast Asia: 3.1% Middle East: 3.5% Latin America: 2.5% North America: 2.0% Investments South Asia: 6.5% Northeast Asia: 7.3% Latin America: 6.1% North America: 4.4% Exports South Asia: 5.6% Northeast Asia: 5.1% Middle East: 4.5% Latin America: 7.8%

Strategies Sihanoukville Declaration on Multilateral Cooperation for Ecotourism Development

Strategies Bokor Declaration on Sustainable Development of Coastal Cities

Strategies 2. Tourism Quality: Online licensing system Strategic plan for tourist guides Implement the ASEAN tourist standards Eco-label award Reinforce competitive movement “Clean City, Clean Resort, Good Service” ADD GROWTH RATES COMPARED TO OTHER REGIONS GDP growth pa (2013-2023) South Asia: 7.6% Northeast Asia: 6.4% Middle East: 4.8% Latin America: 4.7% North America: 3.4% Jobs South Asia: 2.2% Northeast Asia: 3.1% Middle East: 3.5% Latin America: 2.5% North America: 2.0% Investments South Asia: 6.5% Northeast Asia: 7.3% Latin America: 6.1% North America: 4.4% Exports South Asia: 5.6% Northeast Asia: 5.1% Middle East: 4.5% Latin America: 7.8%

Strategies CLEAN CITY Contest 77 criteria 33 7 detailed indicators basic indicators 33 detailed indicators 77 criteria

Strategies 3. Marketing and Promotion: Promotional campaign “Cambodia: Kingdom of Wonder” Capture new emerging market (China, India, Russia, UAE, and Middle East) Modernization: E-tourism and E-marketing Tourism events organization to attract international tourists and to push domestic tourists (Sea, River, Elephant Festivals) The Establishment of National Tourism Council for Marketing and Promotion ADD GROWTH RATES COMPARED TO OTHER REGIONS GDP growth pa (2013-2023) South Asia: 7.6% Northeast Asia: 6.4% Middle East: 4.8% Latin America: 4.7% North America: 3.4% Jobs South Asia: 2.2% Northeast Asia: 3.1% Middle East: 3.5% Latin America: 2.5% North America: 2.0% Investments South Asia: 6.5% Northeast Asia: 7.3% Latin America: 6.1% North America: 4.4% Exports South Asia: 5.6% Northeast Asia: 5.1% Middle East: 4.5% Latin America: 7.8%

Strategies 4. Travel Facilitation and Connectivity: Single Visa, Visa on arrival, E-visa, Visa Direct Flights, Low Cost Carriers and Domestic Connection ( PP-SR-SHV) Cruise Tourism, Tourist Port, Facilitation of Visa Procedure Facilitate procedure for in-and-out tourist cars and bus and Creation of tourist stations ADD GROWTH RATES COMPARED TO OTHER REGIONS GDP growth pa (2013-2023) South Asia: 7.6% Northeast Asia: 6.4% Middle East: 4.8% Latin America: 4.7% North America: 3.4% Jobs South Asia: 2.2% Northeast Asia: 3.1% Middle East: 3.5% Latin America: 2.5% North America: 2.0% Investments South Asia: 6.5% Northeast Asia: 7.3% Latin America: 6.1% North America: 4.4% Exports South Asia: 5.6% Northeast Asia: 5.1% Middle East: 4.5% Latin America: 7.8%

5. Human Resource Development: Strategies 5. Human Resource Development: The establishment of National Committee for Tourism Professionals The establishment of national school for tourism professional training The implementation of MRA in Cambodia ADD GROWTH RATES COMPARED TO OTHER REGIONS GDP growth pa (2013-2023) South Asia: 7.6% Northeast Asia: 6.4% Middle East: 4.8% Latin America: 4.7% North America: 3.4% Jobs South Asia: 2.2% Northeast Asia: 3.1% Middle East: 3.5% Latin America: 2.5% North America: 2.0% Investments South Asia: 6.5% Northeast Asia: 7.3% Latin America: 6.1% North America: 4.4% Exports South Asia: 5.6% Northeast Asia: 5.1% Middle East: 4.5% Latin America: 7.8%

V. Perspectives on Think Tank This part, the overview of Cambodia tourism, will provide, ladies and gentle men, the diversified tourism potential in Cambodia.

Think Tank Objective Objectives: Study and analyze data to elaborate tourism strategic papers Study new trends of tourism Stimulate the implementation of tourism strategic plan 2012-2020 …

- Consultants, Researchers… Think Tank Structure Think Tank Board Partners: - Research Centers - Consultants, Researchers… Secretariat

Conclusion Cambodia Tourism Culture and nature-based tourism A national top priority sector Developed in a sustainable and responsible manner Green Gold toward development of Green Economy

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