Wednesday, 28 January 2009

Khmer tourism stagnates

e-Travel Blackboard
Wednesday, 28 January 2009

According to an article in Cambodia's Koh Santepheap Newspaper, officials from the Apsara Authority indicated that revenue from the 2008 sale of tickets to visit the Angkor temple complex amounts to $30 to $31 million, i.e. a small drop from 2007.

Bun Narith, Deputy Director of the Apsara Authority, told Koh Santepheap over the phone, on 13 January: "We are not publishing the actual ticket sale revenue number yet, but we are only providing an approximate number, which amounts to $30 to $31 million. There is a slight drop as compared to 2007, where the revenue was $32 million."

Bun Narith indicated that the official number will be announced only after the Ministry of Tourism and the Ministry of Economy and Finanace agree with each other. The Ministry of Tourism tallies the number of Khmer and foreign visitors, the Apsara Authority tallies the number of visitors, who bought tickets to visit Angkor Wat only, and some of the (foreign) visitors did not even pay for their tickets because they were guests of the government.

It should be noted that the ticket sales right was granted to the Sokha Hotel Company, owned by Oknha Sok Kong, through a government concession contract concluded on 17 June 2005.

Bun Narith indicated that foreign visitors must either buy a $20 ticket for a one-day visit, a $40 ticket for a 3-day visit, or a $60 ticket for a one-week visit. Following the substraction of the sales tax, revenue from the ticket sales is divided between Sok Kong’s Sokha Hotel Company and the Apsara Authority as follows: the first $3 million revenue is shared 50%-50% between Sokha Hotel and the Apsara Authority. For the remainder of the revenue, 15% goes to a development chest for the Angkor area, 68% goes to the Apsara Authority, and 17% is kept by Sokha Hotel Company. The Apsara Authority portion of the revenue goes directly to the state coffer.

The Ministry of Tourism and the Ministry of Economy and Finance, which is in charge of expert review on the ticket sales revenue, did not provide any comment or official statement yet. Nevertheless, Dr. Thong Khon, Minister of Tourism, recently stated that the total number of tourists visiting Cambodia in 2008 increased by 5.48%. This is translated into 2.12 million tourists, i.e. there is no drop in the number of tourists, even though the percentage of tourist increase is lower than expected.

The tourism sector is one of among the three top priority sectors for the development of Cambodia after the garment sector and the construction sector.

Furthermore, Sdeung Sokhon, Under-Secretary of State of the Ministry of Tourism, used to say that revenue from the tourist sector is continually growing, because in 2007 the number of tourists rose to 2 million. Studies indicated that, in the average, tourists visiting Cambodia spend $700, excluding the price of their airfare, therefore the average spending for the 2 million visitors to Cambodia would amount to more than $1.4 billion. Tourist revenues are distributed to visa revenue, hotel taxes, food, souvenir items and other miscellaneous items, as well as cost of purchase of tickets for visiting Angkor temples. Some of the tourist revenue benefits directly the population. He added also that, based on his personal estimate, tourist revenue benefit private individuals more than the state.

However, economic observers said that out of all the tourist revenue, 30% flows right back out to import products from overseas and neighboring countries.

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