ENABLING ECOTOURISM DEVELOPMENT IN CAMBODIA © 2020 The World Bank 1818 H Street NW, Washington, DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved This work is a product of the staff of The World Bank. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Attribution - Please cite the work as follows: “Rawlins, Maurice, Werner Kornexl, Sumit Baral, Neth Baromey, Natasha Martin, and Nick Ray. 2020. Enabling Ecotourism Development in Cambodia. Washington, DC: World Bank All queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: pubrights@worldbank.org. Photo credits Cover. Ecotourism in Cambodia. Various sources Page 1. Shinta Mani Waterfall, Cardamom Mountains. Nick Ray Page 3. The face temple of Bayon and the streets of Siem Reap are empty. Nick Ray Page 7. Cardamom Tented Camp. Khiri Travel Cambodia Page 13. 4 Rivers Floating Lodge | Natasha Martin Page 14. Ecotourism in Cambodia. Various sources Page 20. The Cardamom Mountains is home to some of the most pristine rainforest in Cambodia. Wildlife Alliance Page 21. The Cardamom Mountains provide a home to pileated gibbons. Allan Michaud, CTC Page 22. 4 Rivers Floating Lodge. Natasha Martin Page 23. Wildlife in the Cardamom Mountains includes Guar, Sun Bear and exotic birdlife. Allan Michaud, CTC Page 24. Shinta Mani Wild resort in the Southern Cardamom Mountains. Natasha Martin Page 29. Homestay accommodation at Stung Areng. Natasha Martin Page 31. Shinta Mani Wild resort in the Southern Cardamom Mountains. Natasha Martin Page 37. Aerial view of one tent at Shinta Mani Wild. Natasha Martin Page 37. The lap pool at Shinta Mani Wild. Natasha Martin Page 38. Shinta Mani Wild resort in the Southern Cardamom Mountains | Natasha Martin Page 41. Aerial View of Cardamom Tented Camp. Natasha Martin Page 45. Shinta Mani Wild resort in the Southern Cardamom Mountains. Natasha Martin Page 49. 4 Rivers Floating Lodge. Natasha Martin Page 53. Shinta Mani Wild resort in the Southern Cardamom Mountains. Natasha Martin Page 56. Angkor Wat as seen on 1 April 2020 during the height of the global COVID-19 pandemic. Morgan Havet Page 57. The jungle temple of Ta Prohm and the face temple of Bayon also deserted during COVID-19. Nick Ray Page 58. Pub St and Old Market in Siem Reap are mostly closed down during the COVID-19 pandemic. Philippe Janowski Page 60. The Gallery of a Thousand Buddhas at Angkor Wat during the COVID-19 pandemic. Nick Ray Page 68. Cardamom Tented Camp. Khiri Travel Cambodia CONTENTS CONTENTS iii ACKNOWLEDGEMENTS vii ACRONYMS viii DEFINITION OF TERMS USED IN THIS REPORT ix HOW IS THIS DOCUMENT ORGANIZED? x EXECUTIVE SUMMARY 1 Developing Ecotourism is a Priority for Cambodia’s Tourism Sector and Economy 2 Ecotourism, the National Economy and Rural Livelihoods 5 Who are the Tourists and Where do They Come From? 5 The Private Sector 7 Barriers to a Thriving Ecotourism Sector 8 Key Strategic Actions to Enable Ecotourism in Cambodia 9 1 SETTING THE SCENE 13 Background 13 The Royal Government of Cambodia’s (RGC’s) Ecotourism Sector Development Agenda 16 The Cambodia Sustainable Landscape and Ecotourism Project (CSLE) and this Report 17 SPOTLIGHT 1. Sowing the Seeds of Ecotourism in the Cardamom Mountains 20 ….. now there is COVID-19 23 2 ECOTOURISM AND THE NATIONAL ECONOMY 24 Contribution to Gross Domestic Product (GDP) and Jobs 25 Contribution to Local Economies 26 Contribution to Local Supply Chains 28 Case Study 1. Stung Areng - A Successful CBET site 29 Case Study 2. Chambok - A Successful CBET site 30 E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A 3 ECOTOURISM VISITORS AND SOURCE MARKETS 31 International Tourist Arrivals 31 Source Markets for Tourism in Cambodia 33 Decline in Non-Chinese Tourist Markets in Cambodia Emphasize Urgency for Tourist Product Diversification 36 Case Study 3. Shinta Mani Wild - A Private Sector Conservation Model 37 4 PRIVATE SECTOR ACTORS 38 Trends 38 Performance of Ecotourism Private Sector 40 Challenges 40 Case Study 4. Cardamom Tented Camp - A Private Sector Conservation Model 41 iii CONTENTS 5 ENABLING REGULATORY FRAMEWORKS AND POLICIES 45 The National Ecotourism Policy 2019-2030: A Vision for Ecotourism in Cambodia 46 Regulatory Framework for Ecotourism in Protected Areas (PAs) 46 6 CHALLENGES AND BARRIERS TO ECOTOURISM DEVELOPMENT IN CAMBODIA 49 Relatively Weak Enabling Environment for Ecotourism 50 Inadequate Planning and Management of Ecotourism Activities 51 Inadequate Protection of Ecotourism Assets 51 Low Quality of Ecotourism Offerings and Services 52 7 COVID-19 – A NEW REALITY 53 Impact of Travel Restrictions 53 SPOTLIGHT 2. Siem Reap is Empty 56 Impact on the Economy 61 Tourism in Recovery 64 Flight Connections 65 Environmental Threat to Protected Areas (PAs) 66 Using Ecotourism to Support Post-COVID-19 Recovery in Cambodia 66 Cambodia’s COVID-19 Policy Response 67 8 CREATE AN ENABLING ENVIRONMENT FOR ECOTOURISM IN CAMBODIA 68 Approach Used to Develop Recommendations 69 Respond Now to the COVID-19 Pandemic 69 Strengthen Regulatory Frameworks 77 Strengthen Institutions and Partnerships 80 Strengthen Ecotourism Destination Planning, Management and Marketing 82 Enabling Private Sector 90 E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A REFERENCES 94 ANNEXES 97 Annex 1. Opportunities and Challenges for Ecotourism in PAs 97 Annex 2. Travel and Tourism Competitiveness Index Scores for Selected South-East Asian Countries for 2015-2019 97 Annex 3. Tourism Segments in Cambodia 98 Annex 4. Characteristics of Independent Outbound Chinese Tourists 100 Annex 5. Recommendations for Improving the Legal and Regulatory Framework for Ecotourism 101 Annex 6: Fuller List of Recommended Strategic Actions for COVID-19 Response and Recovery in the Tourism and Ecotourism Sectors 103 iv FIGURES Figure 1. Cambodia’s Tourism and Ecotourism Industries at a Glance 6 Figure 2. Cardamom Tented Camp 7 Figure 3. Contribution from Tourism to GDP in Cambodia is Higher than its Regional Neighbors 25 Figure 4. Increasing International Tourist Receipts to Cambodia Provide a Significant Contribution to Annual GDP 25 Figure 5. International Tourist Arrivals by Purpose of Visit from 2013 to 2018 32 Figure 6. Visitor Numbers to Coastal Areas and Ecotourism Sites have been Increasing Steadily over the Past Five Years 32 Figure 7. Growth in International Tourist Arrivals to Phnom Penh and Surrounding Areas, and Coastal Areas and Ecotourism Sites is Accelerating while Growth in Arrivals to Siem Reap Angkor Sites is Decelerating 33 Figure 8. Top 10 International Tourism Source Markets by Year for 2013 to 2019 34 Figure 9. 2018 Tourists from all Source Markets including Domestic Visitors 35 Figure 10. Annual Changes in Arrivals from Key Source Markets to Cambodia Illustrate a Declining Trend in Arrivals 36 Figure 11. Hotels, Guesthouses, and Travel Agents have Increased Significantly between 2006 and 2019 40 Figure 12. Road Density in Cambodia is Lower than Several ASEAN Destinations 42 Figure 13. Cambodia Consistently Ranked Lower Travel and Tourism Competitiveness Compared to its Regional Neighbours 43 Figure 14. Cambodia Scores Lower on Several Tourism Competitiveness Indicators Compared to its Regional Neighbors 43 Figure 15. Countries with the Highest Tourism Dependency and Worst Tourism Resiliency Risk Score 54 Figure 16. Change in Average Number of Departures from Phnom Penh Airport – March to April 2020 55 Figure 17. Change in the Average Number of Departures from Siem Reap Airport – E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A March to April 2020 55 Figure 18. Drop in Numbers of International Tourist Arrivals to Cambodia – 2019 and 2020 56 Figure 19. Drop in Numbers of Khmer visitors to Coastal and Ecotourism Sites in Cambodia – January to March 2019 and 2020 56 Figure 20. Change in Mobility Trends for Retail and Recreation Centers 62 Figure 21. Example of Tourism Supply Chain 63 Figure 22. Example of Tourism Destination Plan from Lower Mustang Valley Nepal 84 Figure 23. Mapping Priority Areas for Ecotourism Development 86 Figure 24. Proposed Ecotourism Destinations in the CMTS Landscape 88 v TABLES Table 1. Three Possible Economic Scenarios for Tourism in Cambodia 4 Table 2. Average daily tourist spending in Cambodia in 2018 has Declined by About 18 Percent Compared to 2013 26 Table 3. Average Daily Tourist Spend and Annual Income from Ecotourism for 18 CBET Operations 27 Table 4. Definitions of Private Sector Tourism Operators 39 Table 5. Internet Penetration Rates in Cambodia, Vietnam and Thailand in January 2020 44 Table 6. Three Possible Economic Scenarios for Tourism in Cambodia 61 Table 7. Recommended Strategic Actions for RGC for COVID-19 Response and Recovery in the Ecotourism Sector 71 Table 8. Recommended Strategic Actions for RGC for Improving the Enabling Environment for Ecotourism in Cambodia 72 Table 9. Proposed Models for Ecotourism Development in Cambodia’s PAs 78 Table 10. Priority Investments in Infrastructure and Non-Infrastructure to Enable Ecotourism Development 92 BOXES Box 1. Private Sector in Ecotourism 18 Box 2. Ecotourism and Protected Areas (PAs) 19 Box 3. Proposed models of Community and Private Sector Partnerships 81 Box 4. An Ecotourism Services Program in Cambodia 83 Box 5. Mapping and Prioritizing Ecotourism Destinations in Cambodia’s Cardamom E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A Mountain-Tonle Sap Landscape 85 Box 6. Brand Identity of Kruger National Park 90 vi ACKNOWLEDGEMENTS The Enabling Ecotourism Development in Cambodia Report is a World Bank advisory product developed for the Royal Government of Cambodia (RGC) to support the sustainable development of ecotourism as part of a broader strategy for sustainable management of the country’s natural capital. The advisory work was undertaken as part of a broader effort of the World Bank in Cambodia to provide guidance to the RGC through technical assistance and analytical and advisory services on managing its natural capital through landscape approaches. Working in the Cardamom Mountains, the Mekong Delta and in the upstream Mekong, the Bank is helping the RGC to better manage and add value to its natural capital through strengthening its links to the economy. This report is the output of rich dialogue and exchange with a number of institutions and individuals in the RGC. This work is part of the technical assistance (TA) provided under the Bank’s Enhancing Environmental Sustainability and Resilience in Cambodia technical assistance Program. The work was funded by the Program on Forest (PROFOR). A World Bank team carried out this work in cooperation with Cambodia’s Ministry of Environment (MoE), Ministry of Economy and Finance (MEF), Ministry of Tourism, and Ministry of Rural Development. The World Bank team would like to thank, in particular, Excellency Sao Sopheap, Secretary of State MoE, Excellency Hem Vanndy, Secretary of State MEF, and their dedicated teams for support in data collection and technical guidance. World Bank management, including Inguna Dobraja, Country Manager for Cambodia; Christophe Crepin, previous Practice Manager for Environment, Natural Resources, and Blue Economy for East Asia and the Pacific, and Stephen Ling, Lead Environmental Specialist; and Mark Austin, Program Leader for Sustainable Development, South East Asia, provided strategic guidance. The World Bank task team for Enabling Ecotourism Development in Cambodia is led by Maurice Andres Rawlins (Natural Resource Management Specialist) and Werner Kornexl (Senior Natural Resource Management Specialist) and at the time of delivery includes Elisabeth Steinmayr (Junior Professional Officer), Sumit Baral (Regional Tourism Consultant), Natasha Martin (Tourism Private Sector Consultant), Neth Baromey (Cambodian Tourism Consultant), Jo Pendry (Legal Consultant), and Nick Ray (Tourism Writer and Communications Consultant). E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A The World Bank team appreciates the inputs provided by World Bank peer reviewers Urvashi Narain, Hasita Bhammer, and Claire Honore Hollweg. The team thanks Cath Croxton, Herbert Navasca, and Christopher Carlos for editing services. vii ACRONYMS ASEAN Association of Southeast Asian Nations MCDA Multiple criteria decision approach AHP Analytic Hierarchy Process MEF Ministry of Economy and Finance ATTA Asian Travel and Tourism Association MLMUPC Ministry of Land Management Urban BBB Build Back Better Planning and Construction CAM DMC Cambodia Destination MLVT Ministry of Labour and Vocational Training Management Company MoE Ministry of Environment CATA Cambodia Association of Travel Agents MoH Ministry of Health CBD Convention on Biological Diversity MoI Ministry of Interior CBET Community-based Ecotourism MoP Ministry of Planning CDC Council for Development of Cambodia MoT Ministry of Tourism CMTS Cardamom Mountain Tonle Sap landscape MoU Memorandum of Understanding CRA Cambodia Restaurant Association NCCMD National Committee for Coastal CSLE Cambodia Sustainable Landscape and Management and Development Ecotourism Project NEP National Ecotourism Policy CTF Cambodia Tourism Federation NGO Nongovernmental organization DET-MoE DET-MoE Department of Ecotourism of NPASMP National Protected Area Strategic Ministry of Environment Management Plan DMC Destination Management Company NTFP Non-timber forest product DP Development Partner PA Protected Area EIF Ecotourism industry forum PATA Pacific Asian Travel Association EIP Ecotourism investment project RDB Rural Development Bank ESF Environment and Social Fund RMB Renbinbi ESP Ecotourism Services Program RGC Royal Government of Cambodia FIT Financially Independent Tourist RMS Revenue management system GDP Gross domestic product SME Small and medium enterprise GIS Geographic information system TSP Tourism service provider GIT Group Inclusive Tour UNWTO United Nations World Tourism Organization ICDP Integrated conservation and VN Vietnam Airlines E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A development program WASH Water, sanitation and hygiene ITB Institute of Tourism and Development WEF World Economic Forum IUCN International Union for Conservation WRS Wildlife release station of Nature WTTC World Travel and Tourism Council KTV Karaoke bar YMCA Young Men’s Christian Association MAFF Ministry of Agriculture, Forest and Fisheries viii DEFINITION OF TERMS USED IN THIS REPORT Build Back Better (BBB). BBB is an approach that Ecotourism Stakeholders. Government agencies, deals with current disasters and economic shocks non-governmental agencies (NGOs), the private sector, whilst also building community resilience to manage local community groups, local communities and other future similar situations more effectively. It provides a resource management agencies. framework to limit the damage from the current crisis but also to strengthen the ability to deal with future Free independent travelers (FIT). Tourists who plan disasters and economic shocks. their own trips and prefer to travel alone or in small groups Carrying capacity. The largest number of tourists able to visit a destination while sustaining and protecting Group Inclusive Tour (GIT). A tour of a destination the physical, economic and sociocultural environment or event for a group of people, usually with some at the same time as maintaining visitor satisfaction. 1 common affiliation (although not always), usually with a minimum of 10 people in the group and usually Community-based ecotourism (CBET). CBET emerged (although, not exclusively) organized through a travel in the 1990s as a strategy to integrate community operator and escorted by a tour guide (although, development priorities with conservation objectives. not necessarily).3 These integrated conservation and development programs (ICDPs) support global and national efforts Itinerary. An itinerary is a travel plan that includes to achieve sustainable development by promoting every information like the route of travel, distance and local economic development initiatives that preserve time taken to travel to a place, means of transport that the natural environment. In Cambodia, ICDPs have will be used, and any activities at a particular place for acted as a self-financing mechanism for Protected every tourist to follow while on a tour. Areas (PAs), as well as supporting participatory conservation and endogenous development across Prakas. A regulation issued adopted by Minister the country. or Central Bank Governor. It must conform to the Constitution and to the law or sub-decree. Destination Management. Destination management is the coordinated management of all elements that Non-extractive livelihoods. Human activities that build make up a destination, including the attractions, prosperity without undermining the sustainability of amenities, access marketing and pricing. 2 the environment by removing resources. Examples E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A include community wildlife tourism. Ecotourism Investment Project (EIP). An EIP is a contract between the Government and another actor Tourist Destination. A tourist destination is a city, that gives specific rights to control an area of land for town, or other area that is dependent to a significant a fixed period of time. This contract also controls the extent on revenues from tourism, or a country, state, conduct of specific activities related to ecotourism and region, city, or town which is marketed or markets itself tourism in that area. Although EIPs may be granted as a place for tourists to visit.4 exclusive rights to use the land, an EIP does not grant full ownership rights and the land remains the property of the State. 1 Leung et al. 2018 2 See: https://www.solimarinternational.com/what-we-do/destination-management/ 3 See: https://holyvoyages.com/group-inclusive-tour-git.aspx 4 Beirman. 2003 ix HOW IS THIS DOCUMENT ORGANIZED? This report has been structured around the important 5 . Private Sector Actors examines the role of the issues and challenges that relate to the ecotourism private sector in tourism and ecotourism and the industry in Cambodia. Each one is an integral part of challenges it faces. the ecotourism story. The analysis and information provided leads to the section on the recommendations . 6 Challenges and Barriers to Ecotourism for enhancing an enabling environment for ecotourism Development in Cambodia explores these in Cambodia. challenges, and others, in greater detail. 1. The Executive Summary presents the key facts to 7 . COVID-19 – A New Reality was introduced to the support the recommendations. It also provides document once it was clear that the pandemic recommended actions that would facilitate a would have such a huge impact on this industry. quicker rebound from COVID-19 and sets the It discusses the effect of travel restrictions, the scene for developing a more enabling ecotourism economy and the opportunities for renewal. environment. 8 . Create an Enabling Environment for Ecotourism 2 . Setting the Scene explains the background to the in Cambodia is the recommendations section. report, its aims and objectives. It has two tables that detail all the strategic actions that need to happen to create an 3 . Ecotourism and the National Economy presents enabling environment. It also discusses these the data on the importance of ecotourism to the recommendations in detail. national economy and its relationship to building sustainable non-extractive livelihoods and Four Case Studies have been included that provide tackling rural poverty. examples of successful community-based ecotourism (CBET) and private sector conservation models. There 4 . Ecotourism Visitors and Source Markets discusses are also two SPOTLIGHT articles. One is on ecotourism the different sources markets for ecotourism and in the Cardamom Mountains and the other on Siem how this is changing. Reap during COVID-19. E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A x Shinta Mani Waterfall, Cardamom Mountains | Nick Ray EXECUTIVE SUMMARY Key Messages of this Report for the Royal Government of Cambodia (RGC) Key Message 1: Invest NOW in ecotourism development to: DIVERSIFY Cambodia’s tourism product with ecotourism offerings; CREATE jobs and STIMULATE rural economies; and PROTECT the forest assets that underpin ecotourism E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A Key Message 2: BUILD BACK BETTER after COVID-19 in the tourism sector by investing in ECOTOURISM. Key Message 3: SUPPORT ecotourism development now to enable PRIVATE SECTOR investments and focus on: regulations for ecotourism; ecotourism infrastructure; protecting forest and natural assets; upskilling labour force and community ecotourism groups; and ecotourism marketing and communication. 1 Developing Ecotourism is a Priority for are exactly what ecotourists look for and the opportunities for supporting the expansion of this Cambodia’s Tourism Sector and Economy industry are great. There are already examples of Cambodia’s tourism industry is a key contributor to successful mid-, to high-end ecotourism operations its economic growth. The tourism sector provided a in Cambodia which suggest that ecotourism products sizable contribution to Cambodia’s economy and this have great potential. In addition, iconic landscapes contribution was on the rise. In 2019, tourism accounted like the Cardamom Mountains have the natural assets for 21 percent of gross domestic product (GDP) and in 5 to enable development of new and exciting multi-day 2017 tourism accounted for 25 percent of Cambodia’s itineraries that can accommodate the demands of key total exports. The ecotourism sector was a notable part 6 tourism markets in Cambodia. Some of these assets of this and, in recent years, was showing signs of even include waterfalls and rivers for weekend and holiday greater growth than the rest of the tourism industry. 7 getaways for domestic tourists. There are mountains, Ecotourism is recognized as a subset of tourism and closed canopy forests for hiking, and other similar the term is used to cover tourism activities related to opportunities for adventure tourism for the younger nature-based tourism, such as birdwatching, fishing, tourist from both Cambodia and internationally. The camping in natural areas, hiking, kayaking, ziplining, and rich biodiversity, including birds, insects, and small adventure tourism in natural areas. mammals, provide an attraction for birdwatchers and wildlife enthusiasts. In addition, the remoteness that However, a recent slowdown in the growth of tourism some of Cambodia’s picturesque forested landscapes points to a need to diversify Cambodia’s tourism provide are exactly what the high-end wealthier tourist sector. Angkor Wat is Cambodia’s main tourism product from North America, Europe, ASEAN countries and and many visitors come to Cambodia for this. However, China seek. the number of visitors to Angkor Wat over the past three years have declined by about 10 percent. Visitors from Developing the ecotourism industry can create jobs key source markets like South Korea and Japan have and provide stimulus for rural economies and building also seen declining trends. This impacts the overall livelihoods in rural areas (especially important now number of visitors to Cambodia and the revenues that due to the impacts of COVID-19). Tourism contributed come from tourist spending. Average daily spending of directly and indirectly to about 1.3 million jobs in tourists has declined by about 18 percent which industry 2018, and annual income from community-based experts have noted is due to low tourism destination ecotourism has reached as high as US$300,000 for some and product diversification. rural communities.8 Agricultural produce, food and transport services are supply chains linked to tourism Trends of increased visitors to ecotourism sites in and ecotourism that can absorb more rural persons. Cambodia indicate that ecotourism is a product that Capacity training and upskilling, and deliberate benefit- E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A could be further developed to harness its potential. sharing mechanisms will be needed. The numbers of tourists visiting coastal areas and ecotourism sites in Cambodia is growing, doubling Developing ecotourism can produce the revenues between 2014 and 2019, and accounting for 16 percent of needed to help manage Cambodia’s extensive all tourist visits in 2019. Protected Area (PA) network and protect the important economic services provided by the forests in the PAs. Cambodia’s spectacular and pristine natural assets Healthy plants and wildlife, and beautiful landscapes 5 MoT. 2020 6 World Integrated Trade Solution (WITS). https://wits.worldbank.org/ 7 MoT. 2015-2020 8 MoE. 2017 2 The face temple of Bayon and the streets of Siem Reap are empty | Nick Ray, 2020 In 2019, 2.2 million tourists visited the Temples of Angkor bringing much needed tourism dollars into Siem Reap for accommodation providers, restaurants, cafes, bars, shops, galleries, market stalls, attractions and other experiences. Since COVID-19, tourism arrivals have dropped to zero as lockdowns, travel bans, and entry restrictions have come into play. Arrivals are predicted to remain close to zero into May and even June. It is unknown when the situation will return to normal. and nature in PAs are assets that create high value for have had so few customers they have had to close or ecotourism that help generate about US$600 billion are struggling to survive. Key tourist destinations in in annual revenues from ecotourism in PAs globally. 9 Cambodia are currently empty. Protecting PAs like those in the Cardamom Mountains is also protecting the assets that underpin ecotourism, The impact on the industry is significant. In a high and other important assets like watershed habitats impact scenario Cambodia could see tourist arrivals that provide water for other key economic sectors like decrease by 80 percent in 2020 (Table 1). This would agriculture and industry. result in lost tourism revenues of about US$2.8 billion with about one million jobs affected. The significant impact of COVID-19 on Cambodia’s tourism sector is an additional reason for diversifying The impact of COVID-19 on PAs will also be significant. the country’s tourism offerings. The flow of As more people become unemployed due to the E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A international tourists has decreased significantly fallout of COVID-19, they are more likely to turn to because of COVID-19 – compared to 2019 international the illegal wildlife trade and to change land usage to tourist arrivals have decreased by 63 percent.10 supplement incomes. Already there is a rise in illegal The number of flights leaving Phnom Penh airport incidences of wildlife poaching in Cambodian PAs decreased by 80 percent and Siem Reap airport by where tourism has declined. 98 percent. Bars, Karaoke bars (KTVs) and casinos 11 were ordered to close. Hotels, guesthouses and resorts Making ecotourism development a part of Cambodia’s 9 Balmer et al. 2015 10 Comparing arrivals from January- March in 2019 with 2020. Data from MoT. International tourists includes business travellers. 11 Garcia. Andres. 2020 3 TABLE 1. THREE POSSIBLE ECONOMIC SCENARIOS FOR TOURISM IN CAMBODIA12 High-impact worst-case scenario – This assumes that recovery can only begin from November 2020 onwards Decline in arrivals in 2020 80 percent Loss of revenue US$2.77 billion Approximate number of tourism jobs affected (direct and indirect) 1 million Substantial-impact scenario – This assumes recovery can only begin from August 2020 onwards. Decline in arrivals in 2020 50 percent Loss of revenue US$1.7 billion Approximate number of tourism jobs affected (direct and indirect) 840,000 Moderate impact scenario – This is the most optimistic scenario that assumes Covid-19 comes under control within the first few months of 2nd quarter of 2020 and some major markets, like China, start to rebound quickly. Decline in arrivals in 2020 30 percent Loss of revenue US$1 billion Approximate number of tourism jobs affected (direct and indirect) 650,000 post COVID-19 recovery strategy is important for ecotourism products and services that can command BUILDING BACK BETTER in the tourism sector. As a higher prices and enhance competitiveness. cross-cutting economic activity, tourism can lead a wider economic and social recovery. This has been The Cambodia Sustainable Livelihood and Ecotourism proven by its response to past disruptions, and the (CSLE) Project provides an opportunity for the RGC United Nation World Trade Organization (UNWTO) is to make rapid progress on developing sustainable advocating that tourism should be part of countries’ ecotourism in Cambodia. The CSLE project’s objective COVID recovery plans. Investments in ecotourism are is to improve PA management, and to promote green stimulus which can create jobs immediately 13 ecotourism opportunities and non-timber forest such as infrastructure works (hiking and walking product (NTFP) value chains in the Cardamom trails) for ecotourism and stimulate economic activity. Mountains Tonle Sap (CMTS) landscape in Cambodia. Marketing Cambodia as a place to visit with a unique The US$55 million financing from the CSLE project will biodiversity and nature-based experiences and allow the RGC to: E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A remoteness will attract more tourists in a post-COVID • Improve the enabling environment for the private world to address tourist desires of ‘getting closer sector investing in ecotourism with new policies to nature, solo experiences and safety’. Ecotourism and clear guidelines for ecotourism development destination planning will help ensure a more in protected areas. sustainable management of Cambodia’s important biodiversity asset, and improve the quality of 12 Estimates based on Authors’ own calculations. The scenarios are created based on projections provided by international tourism industry experts including the UNWTO. The 80 percent, 50 percent and 30 percent decrease in arrivals are only indicative of what may happen. 2019 is used as a base year for the scenario projections for 2020. Tourist arrivals are estimated for three scenarios of tourist arrival decreases using 2019 arrival data as a baseline, and impact on revenues and jobs using data on international tourist receipts, tourist’s average daily spend and average length of stay. The scenarios and the numbers generated are indicative only and should not be used directly in policies or to determine investment needs. 13 Policies and measures to stimulate short-run economic activity, create conditions for long-term expansion of potential output, and enhance environmental outcomes both in the near- and longer-term. 4 World Bank analysis identified three potential ecotourism destinations in Cambodia’s Cardamom Mountains and Tonle Sap landscape: (1) Koh Kong province; (2) Siem Reap province (Kulen-Tonle Sap); and (3) Phnom Aural Protected Area as potential destinations for ecotourism development. • Develop the Cardamom Mountains as an and there has been steady growth in the sector since ecotourism destination, and provide support 2010.14 International tourist receipts which indicate to the private sector for destination marketing income from tourism, have almost tripled between and branding, development of new ecotourism 2010 and 2019. products, and investments to support connectivity to ecotourism sites within the Cardamoms. In 2019, ecotourism accounted for 16 percent of all tourist visits, and the number of visits to ecotourism • Integrate protection of forest resources into sites doubled between 2014 and 2019.15 In addition, ecotourism development. Forests are the key asset ecotourism is particularly important for the livelihoods for ecotourism. Strengthening PA management of the more vulnerable rural communities. These and promoting inclusive growth of rural communities benefit significantly from the ecotourism communities are the entry point for this. industry and it provides an excellent tool for tackling poverty. One example of how ecotourism can bring The Enabling Ecotourism Development in Cambodia significant economic benefits to rural communities report provides clear guidance to the RGC on what is Kampong Phlok village. In 2018, virtually all their needs to be done to develop ecotourism development income was derived from ecotourism - US$300,000. under the CSLE Project. It provides insights into the importance of ecotourism as an economic driver in Who are the Tourists and Where do They Cambodia, the legal frameworks involved with making Come From? it happen, who the tourists and the stakeholders are, and the challenges and barriers that have frustrated Since 2013, tourism has been increasing steadily in the development of the sector. Most importantly, it Cambodia and the tourist profile is changing. In 2019, offers a set of strategic actions that, if implemented, Cambodia received 6.6 million international tourists, could build the environment needed to allow E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A and recorded over 11 million domestic tourists in ecotourism to survive this current challenge, and also 2018.16 The Angkor Complex is still Cambodia’s iconic to thrive going forward. destination and remains the main tourist attraction in Cambodia and the numbers of tourists visiting coastal Ecotourism, the National Economy and areas is on the rise. However, the numbers of tourists Rural Livelihoods visiting ecotourism sites is also growing. This suggests there is potential for growth in this tourism segment. Tourism is responsible for about 17 percent of Cambodia’s annual gross domestic product (GDP), 14 MoT. 2020. The value of 17 percent is based on the average from 2010-2019. 15 MoT. 2019. Coastal areas are included in data on ecotourism by MoT, and some coastal areas like Sihanoukville have significant visitors for business and casinos. This means that ecotourism data likely captures visitors for non-ecotourism activities. 16 MoT. 2019 5 FIGURE 1. CAMBODIA’S TOURISM AND ECOTOURISM INDUSTRIES AT A GLANCE INCREASING INTERNATIONAL TOURIST RECEIPTS TO CAMBODIA PROVIDE DESPITE DECREASE IN AVERAGE DAILY SPEND OF TOURIST A SIGNIFICANT CONTRIBUTION TO ANNUAL GDP 125 6,000 22.0% 120 International Tourist Receipts (US$ Millions) Percentage of annual GDP from Tourism 115 5,000 20.0% 110 4,000 18.0% 105 US$ 3,000 16.0% 100 95 2,000 14.0% 90 1,000 12.0% 85 0 10.0% 80 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 Tourism Receipts (US$ million) % of annual GDP Daily Tourist Spend (US$) INTERNATIONAL TOURIST ARRIVALS HAVE INCREASED BY ABOUT VISITOR NUMBERS TO COASTAL AREAS AND ECOTOURISM SITES 150 PERCENT BETWEEN 2013 AND 2019 HAVE BEEN INCREASING STEADILY OVER THE PAST FIVE YEARS 7,000,000 40.0 6,000,000 30.0 5,000,000 20.0 4,000,000 3,000,000 10.0 2,000,000 0.0 1,000,000 -10.0 0 2013 2014 2015 2016 2017 2018 2019 -20.0 2015 2016 2017 2018 2019 Q1 Q2 Q3 Q4 Phnom Penh &Surrounding (y.y % change) Coastal Areas & Ecotourism (y.y % change) Siem Reap Angkor (y.y % change) 60+16+177D CHINA IS AN IMPORTANT SOURCE MARKET FOR TOURISM IN DOMESTIC TOURISTS ARE ALSO AN IMPORTANT GROUP THAT E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A CAMBODIA AND ECOTOURISM PRODUCTS WOULD NEED TO BE ENGAGES SIGNIFICANTLY IN ECOTOURISM. CUSTOM-MADE CUSTOM-MADE FOR THIS TOURIST SEGMENT PRODUCTS WOULD ALSO BE NEEDED FOR DOMESTIC TOURISTS. 100% Other countries North America & Europe 90% Australia 890,502 80% Russia UK ASEAN 70% France 2.067,504 60% Malaysia 2018 50% Japan 40% USA Domestic 7,497,296 30% South Korea China 20% Thailand 2,024,443 Lao PDR 10% Vietnam 0% China 2013 2014 2015 2016 2017 2018 2019 Source: MoT. 2010-2019 6 Cardamom Tented Camp | Khiri Travel Cambodia FIGURE 2. CARDAMOM TENTED CAMP Cardamom Tented Camp is a private enterprise model of ecotourism. The hotel has 18,000 hectares in the Cardamom Mountains and is an ecotourism investment project (EIP). The conservation objective is to ensure the forest is free of illegal loggers, poachers and sand dredging operations. Its tagline is ‘Your Stay Keeps the Forest Standing,’ and it is funded by Minor Group and Yaana Ventures (the parent company of Khiri Travel). The largest number of tourists come from Cambodia offerings to include more ecotourism experiences, and itself. There is limited research available about this implementation of a robust trade marketing strategy sector. However, the bulk of these tourists are day or among other things. weekend visitors to ecotourism sites (waterfalls, rivers, beaches) who want to escape the city and meet with The Private Sector their families. Private sector operators have been operating in China is the next largest market. Nearly 35.7 percent Cambodia for a while. They provide accommodation, of tourists come from China, and between 2017 transport, activities and act as tour operators. Without and 2019 the number of Chinese tourists virtually them, Cambodia’s tourism economy would struggle to doubled.17 Their profile is changing too as more of exist. The private sector is also growing in Cambodia. them are looking for ‘adventure’ holidays and more Between 2006 and 2019, the number guesthouses and independent types of experiences. This fits well rooms grew by 300 percent and the number of hotel E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A with the ecotourism model and presents a great accommodations tripled.18 opportunity for expanding the ecotourism industry. Private sector operators are involved in the Tourists from ASEAN, Europe and North America ecotourism industry. They bring expertise, experience account for a much smaller proportion of total and investment, and open doors to different categories visitors and have been showing some decrease in of tourists. There are currently 146 ecotourism visits in recent years. For example, visitors from South operations in Cambodia comprising 87 community- Korea have declined steadily between 2016 and 2019. based ecotourism (CBET) operations and 59 private Sustaining visitor numbers from ASEAN, Europe and ecotourism operations.19 North America will require a redesign of tourism 17 MoT. 2013-2018 18 MoT. 2006-2019 19 Baromey, Neth. 2020 [Draft] 7 Sustainable ecotourism will require managing the • Low investment by the government in tourism growth of the sector in order to avoid negative marketing. The dominant tourism brand for impacts on PA resources, and the sustainability of Cambodia is Angkor Wat but a separate brand for the sector. Managing visitor numbers will need to be ecotourism also needs to be developed. part of an overall destination planning exercise that considers the carrying capacity of the PA based on • Poor connectivity infrastructure like roads and biophysical conditions, the desired tourist experience, bridges are insufficient in ecotourism areas the number of guesthouses and lodges, the behavior like the Cardamom Mountains and need to of travelers, travel methods, and the number of visitors be developed. that can be accommodated in the PA. 4 Inadequate Policy and Regulatory Frameworks for Ecotourism Barriers to a Thriving Ecotourism Sector The National Ecotourism Policy (NEP) lacks detail and Ecotourism in Cambodia is struggling to develop. focus. In 2018, RGC developed the NEP to encourage There are four main reasons for this. and support ecotourism operations, private sector Inadequate Protection of Ecotourism Assets involvement and priority sites. However, while the 1 policy provides the vision, it lacks the detail for how to There is a lack of protection of ecotourism assets like operationalize the implementation process. It also fails PAs. This lack of protection leads to a degradation of to focus on PAs, which are the most important areas forests and puts Cambodia’s biodiversity under threat. for ecotourism operations. Yet, these environmental assets are ecotourism’s main resource. If they become threatened, the private sector The laws that support the development of ecotourism is less likely to invest in ecotourism. conflict with each other causing confusion on how ecotourism should be implemented. These laws EIPs in PAs are the ideal vehicle for attracting tourists include the Protected Areas Law, the Land Law and and tourist revenues to these areas - whilst also the Law on Concessions. There is a lack of clear maintaining and looking after the environment at the guidance to the private sector on how to invest in same time. ecotourism development in Cambodia, and insufficient communication from the RGC to the private sector. 2 Low Quality and Diversity of Ecotourism Offerings In addition, collaboration and knowledge sharing are weak across the various ecotourism stakeholders. Some of the existing ecotourism offerings are low in quality and their variety is limited. This lack of These lead to an overall Weak Enabling Environment E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A diversity and quality does not encourage foreign travelers to ‘stay another day’ in Cambodia, or Additionally, the environment for ecotourism is to return. characterized by: 3 Inadequate Planning and Management • Weak communication and cooperation between government and private sector which frustrates There is a lack of planning and management activities marketing opportunities by the government that could support ecotourism. These include: • Relatively weak business environment and low competitiveness compared to countries in the • Low investment in marketing research region necessary to develop tourism products, itineraries and destinations. • Inadequate leadership and coordination of ecotourism development. 8 Key Strategic Actions to Enable Ecotourism in Cambodia Interventions are needed to improve the enabling a more enabling environment for ecotourism have environment for ecotourism in Cambodia. And now been identified. These are organized into five key the COVID-19 pandemic has highlighted the need interventions, starting with a set of recommendations for additional priority actions. In collaboration for a response to COVID-19. with the RGC, a set of recommendations to create Recommendations Actions Now Within 3 Within 15-18 months months MITIGATE THE IMPACTS OF COVID-19 ON THE ECOTOURISM INDUSTRY Develop and • Ministry of Tourism (MoT) and Ministry of Environment X implement a specific (MoE) to collaborate on leading and developing a unified communication communication strategy. strategy during the • Details to include clear information on travel bans, and crisis period. to ensure government departments, PA officials, hotel staff and tourists are all aware of the current status. • All updates to be immediately communicated. Create clear rules • MoE and Ministry of Health (MoH) to collaborate on X around social creating the rules around social distancing and group sizes. distancing and • Cap the number of people at heritage sites and waterfalls group size. to maintain appropriate social distance requirements. • Limit or prohibit food buffets for the remainder of 2020. Prioritize the • In particular, promote the development of wellness, X development of nature- spirituality, meditation and other products. They will be in based, ecotourism greater demand after the crisis and people will be seeking or adventure-related more meaning in their lives. destinations. • This recommendation aligns with other recommendations to MoE to invest in the branding of ecotourism in Cambodia. Support the creation • MoE, MoT and MoH to collaborate on the creation of these X of appropriate hygiene measures. and sanitation protocols • Include frequent disinfecting of equipment and for tour operators and temperature checks. guides. • Include standards for basic packages of health equipment, E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A such as masks, thermometers, hand sanitizers. • Create handwashing stations around heritage or popular tourism sites. STRENGTHEN REGULATORY FRAMEWORKS Global best practice on developing ecotourism in PAs emphasizes strong regulation as a first order and necessary activity. Develop new policies Priority actions include: X to address ecotourism • Issue a Ministerial Prakas to provide clear operational regulatory challenges. guidelines for how to develop ecotourism investment projects (EIPs) in PAs. It should describe the processes for planning commercial ecotourism services, developing information leaflets and brochures, soliciting and evaluating proposals, and awarding new ecotourism EIP contracts. • Create a step-by-step guide to communicate guidelines to private sector. 9 Recommendations Actions Now Within 3 Within 15-18 months months Implement • Operationalizing the NEP, will help to ensure alignment X strategic actions for between the proposed Prakas and the NEP. operationalizing the • Priority is to revise the NEP to encourage diversification National EcoTourism of ecotourism products including homestays, guiding, Policy (NEP). cooking demonstrations and tours. Establish a revenue • A RMS needs to be established to improve the X management system management of revenues associated with ecotourism. (RMS) to improve These revenues come from EIP fees, entry fees for PAs, management of parking fees, and other visitor services. A portion of the ecotourism revenues. revenues from ecotourism should be reinvested in PAs to support the overall management of PAs, and the publicly owned ecotourism infrastructure there. An RMS should be developed with clear guidelines for implementation, and for how revenues are fed back into PA management activities. • The RMS should build on existing legislation that guides how tourism fees. • Close collaboration across ministries will be needed for this to be successful. STRENGTHEN INSTITUTIONS AND PARTNERSHIPS Strengthen • Two key institutions for strengthening are the X X partnerships and build Department of Ecotourism of Ministry of Environment capacity of MoE staff for (DET-MoE), and the inter-ministerial working group for more effective oversight ecotourism established under the NEP. and management of • Partnerships need to be fostered between communities, ecotourism in PAs. private ecotourism enterprises and the MoE and MoT for effective rollout of selected ecotourism private, community and joint venture models. • Training and capacity development are needed to build specific ecotourism management skills for stakeholders and to promote the entrepreneurial and creative skills of local people and PA authorities. • Training and capacity development are needed for DET- MoE to properly manage the ecotourism program.20 Strengthen facilitating • Build capacity of DET-MoE to better facilitate X and coordinating the EIP investing processes like masterplanning and E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A role of DET-MoE for environmental impact assessment, and coordinate Ecotourism Services. services needed from other ministries like Ministry of Land Management Urban Planning and Construction for land zoning, demarcation, and registration to make the EIP process less burdensome to investors. 20 An assessment of the staffing needs for managing the overall ecotourism program should include a Program Manager, project development team members, finance team members, operations and planning team members, facility management team members, and legal advisor(s). It will be necessary for MoE to work with the Ministry of Labour and Vocational Training (MLVT) in the design and implementation of the institutional capacity building. 10 Recommendations Actions Now Within 3 Within 15-18 months months STRENGTHEN DESTINATION PLANNING, MANAGEMENT AND MARKETING Invest in ecotourism • Identify three or four ecotourism destinations for priority X destination planning development.21 and development. • Include a development vision for each selected destination X and a visitor management system, considering issues like carrying capacity of the landscape, allowable activities, and standards of quality. • Develop detailed implementation plans to facilitate CBET, X private sector sustainable and qualitative investments, public private partnerships, infrastructure investment, environmental protection and governance to achieve this preferred development vision. MoE to take • Give the MoE the ultimate responsibility on destination X X responsibility for management and revenue management how ecotourism ecotourism destination is developed and managed in the PAs. The process of management. the destination planning, and revenue management will help MoE put in place the measures needed to effectively manage the ecotourism destinations. Reorganize DET-MoE to: • Be better equipped to manage ecotourism destinations • Establish frequent communication with private sector. Develop a Vision and • A vision for ecotourism in the Cardamom mountains and X X Brand for Ecotourism developing a tourism brand for the Cardamoms needs to in the Cardamom be developed. Mountains. • Ensure this vision and brand compliments the existing Angkor Wat brand. • Market the new brand to consumers to support buy-in and uptake of the product. ENABLE AND SUPPORT THE PRIVATE SECTOR Build professional MoE to hold frequent and consistent informational X capacity of meetings within CBET communities. This will improve communities as knowledge and decision-making and, in turn, build private ecotourism service sector confidence. E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A providers. Develop a comprehensive program of capacity building for X X ecotourism services. • Start with an assessment of available training and capacity development opportunities. • Develop a recognized global accreditation tourism curriculum to make ecotourism employees more skilled, competitive, give higher income earning potential and create incentives to stay in the sector. Follow with a survey of the private sector working in ecotourism areas to determine the needed skills for the next generation of ecotourism employees. 21 MoE will need to work closely with the Council for Development of Cambodia (CDC) and MoT on the spatial planning of the destinations. Analysis by the World Bank to identify potential ecotourism destinations in Cambodia’s Cardamom Mountains and Tonle Sap landscape identified Koh Kong province; Siem Reap province (Kulen-Tonle Sap); and Phnom Aural Protected Area as potential destinations for ecotourism development. 11 Recommendations Actions Now Within 3 Within 15-18 months months Build capacity of • Identify as part of the destination management planning X communities to complementary value chains and livelihoods that could engage in-, and be developed as part of the overall ecotourism provide investments destination package. for ecotourism-related • Develop specific investment plans for complementary values chains. value chains that identify needed goods and infrastructure. • Assess and build capacities of communities to engage in complementary value chains and livelihoods including for entering into partnerships with private sector. • Develop guidelines for community-private sector partnerships including contract templates, and benefit sharing arrangements. Invest in priority Identify a set of no-regret investments for ecotourism X infrastructure development: for ecotourism • Urgent: Facilities or regulations that are critical to development. ensuring a positive experience in the PA with minimal or no risk to visitors or the natural environment. • Moderate: Investments that are essential facilities that contribute to minimize risk to humans and the natural environment. • Necessary: Site specific needs or investments already partially in place as a legacy of previous tourism activities MoE to prioritize investment in: • Hard infrastructure such as suitable access roads and boat docks, visitor or information centers, interpretive paths, signage, solid waste management facilities, toilet facilities. • Non-infrastructure investments such as management frameworks, to provide guidance on sustainable ecotourism development initiatives. Organize an ecotourism • Combine the MoT’s already existing annual tourism X industry forum (EIF)22 forum with an EIF by adding an extra half- or one day to to ensure information focus on ecotourism. sharing and feedback. • The designated private sector liaison at DET-MoE can help to facilitate this cooperation. E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A 22 An EIF allows the government to showcase investment opportunities available in PAs, to share information related to the laws, regulations, guidelines and procedures governing those opportunities. It also allows the private sector to advise government officials regarding investment needs. 12 4 Rivers Floating Lodge | Natasha Martin 1 SETTING THE SCENE Background Status update – Most of this document was written before the outbreak of COVID-19. Facts and figures relating to Ecotourism in Cambodia’s Protected Areas (PAs) were pre-COVID. The new situation is addressed in its own section and the document now E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A provides a guide to where ecotourism was, where it could be and, and offers solutions to support the recovery and the future of the industry. Cambodia is endowed with spectacular natural assets. Ecotourists value unspoiled nature, interaction with local communities and the assurance that their holiday has no negative impact on the destination. Cambodia has the assets to match the demands of international and domestic ecotourism. The growth and support of this industry would stimulate economic development, create jobs, reduce poverty and protect the environment. 13 Ecotourism in Cambodia | Various Sources What is Ecotourism? For the purposes of this report ecotourism is E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A recognized as a subset of tourism. The term is used Ecotourism refers to travel to areas of pristine to cover tourism activities related to nature-based nature, usually protected, in order to appreciate the tourism, such as birdwatching, fishing, camping in natural environment while causing minimal impact. natural areas, hiking, kayaking, ziplining, and adventure Ecotourism offers multiple benefits: tourism in natural areas. • Allows visitors (domestic and international) to Why Invest in Development of the Ecotourism Sector? enjoy sites of ecological importance • Promotes conservation There are good strategic reasons for investing in the • Generates revenue for PAs development of sustainable ecotourism in Cambodia, • Provides an alternative livelihood for some of which would also support the country’s local residents overall tourism sector. • Stimulates national economic development through income generation and job creation. 14 Diversifying Cambodia’s tourism product will address • The development of ecotourism would create a recent slowdown in tourism new value chains in rural areas as demands for food and agricultural produce, transport The diversification, intensification and linkage services, souvenir and furniture manufacturers of different tourism products is crucial for the will increase. competitiveness and sustainable development of Cambodia as a tourism destination. The COVID-19 pandemic is causing significant job losses due to the closure of garment factories, slow- Angkor Wat is Cambodia’s main tourism product and down of the construction sector, and migrant workers many visitors come to Cambodia for this. However, the returning home. This emphasizes the need for the number of visitors to Angkor Wat over the past three Royal Government of Cambodia (RGC) to stimulate years have declined as have the numbers of tourist job creation and employment. However, job-creation arrivals from South Korea. This impacts the overall and related value chains will only happen if the number of visitors to Cambodia and the revenues development of ecotourism is well-managed. In that come from tourist spending (see Section 3 of addition, regulations need to be created to ensure that the report). As tourism contributes about 17 percent ecotourism development is inclusive and that there of Cambodia’s gross domestic product (GDP), it is is adequate benefit sharing between private sector important to maintain the flow of international tourists developers and local communities – more on this in to Cambodia. Section 8. Increasing the length of stay and the spending of Developing ecotourism can produce the revenues tourists can be achieved in two ways. needed to help manage Cambodia’s extensive PA network and protect the important economic services 1. Improve and expand ecotourism offerings provided by the forests in the PAs (accommodation and activities) in Cambodia and combining with the development of multi- International examples, such as the Kruger National day itineraries to Angkor Wat with ecotourism Park in South Africa (see Box 6), demonstrate how activities in other parts of the country like the sources of finance from ecotourism can support the Cardamom Mountains or Mondulkiri. management of PAs. 2. Combine ecotourism activities in parts of Cambodia’s PA network is generally underfunded the country like the Cardamom Mountains or but there is potential for Cambodia to adopt similar Mondulkiri with multi-day itineraries to arrangements to support its PA network 23. See Box 2. Angkor Wat. Ecotourism and Protected Areas (PAs). Developing the ecotourism industry can create However, for this to work successfully, E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A jobs and build livelihoods in rural areas (especially Cambodia needs: important now due to the impacts of COVID-19) • a functioning revenue management system • Developing ecotourism in PAs would create (RMS) with regulations with clear details on how opportunities for permanent job creation for rural funds should flow, monitoring, oversight and communities as tour guides, hospitability staff, accounting systems; cooks, transport and other service-providers. • high-quality ecotourism products and experiences; • robust marketing; • The development of ecotourism infrastructure like • the ability to maintain the quality of these areas roads, water systems, and trails would provide for ongoing future use. employment for rural communities through the need for construction laborers. 23 Reference – Specncely et al., 2017 15 Marketing Cambodia as a place to visit with a services (see Figure 10). Already there are 43 private unique biodiversity and nature-based experiences sector led ecotourism development projects in the and remoteness will attract more tourists in a Cardamom Mountains that are at various stages of post-COVID world development. Destination planning is needed to organize how ecotourism investment projects are COVID-19 has changed the preferences of the tourism undertaken, and regulations on allowable activities sector. Surveys of international travelers have found within the PAs need to be enforced. that “experiencing nature”, “beautiful scenery”, and “remoteness” are what most travelers in a post-COVID The Royal Government of world are looking for. This provides an opportunity for Cambodia’s (RGC’s) Ecotourism Sector Cambodia as Cambodian ecotourism can offer these.24 Development Agenda Cambodia is world-renowned for its high levels The RGC is exploring ecotourism as a driver to of-, and unique biodiversity within the Indo-Burma strengthen management of its rich natural capital and biodiversity hotspot region. This biodiversity boost economic prosperity.26 Globally, it is estimated is an asset around which ecotourism could be that ecotourism is increasing every year by 20 developed. Through strategic tourism marketing and percent.27 In addition, Asia is becoming more affluent communications and organizing ecotourism activities and there is a strong attraction towards ‘green’ travel and experiences around biodiversity, RGC can attract a and tourism. greater variety of nature-loving tourist to Cambodia. The RGC wants to tap into this growing market However, compared to other regional tourism by developing new experiences, attractions, and destinations, tourism marketing in Cambodia is low.25 itineraries that build on natural assets. About 41 This needs to be improved and expanded through percent of Cambodia’s landscape is under the PAs a robust marketing, branding and communication system, and the Ministry of Environment (MoE) program and changes in how experiences are as steward over PAs in Cambodia has included organized. See Section 8 for more information. ecotourism as a core strategy for financing PAs in its National Protected Area Strategic Management Plan Destination planning will ensure a more sustainable (NPASMP) 2017-2031. management of Cambodia’s important biodiversity asset and the development of ecotourism With a captive tourism market focused on the Angkor temples, the MoE and Cambodia’s Ministry of Tourism Too many projects can diminish the value of the (MoT) are now developing management policies, ecotourism over time by putting pressure on the regulatory frameworks, strategies, and guidelines to E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A natural resources that attract the ecotourist in the expand ecotourism. The two ministries developed a first place. Therefore, it is crucial that the number of policy for ecotourism (approved in November 2018) 28 projects and the type of projects are well managed. which outlines the RGC’s plans to develop: Cambodia’s growth has been supported by its open • Large- and small-scale ecotourism operations market economy, and in tourism there has been steady • Priority ecotourism areas growth of service providers and accommodation • Private sector participation in ecotourism. 24 Information is based on surveys conducted by Adventure Travel and Trade Association (ATTA) in March 2020 (ATTA. 2020), Oliver Whyman in February 2020 (Penhirin, Jacques and Katie Sham. 2020), and Pacific Asian Travel Association (PATA) in March 2020 (PATA. 2020). 25 WEF. 2019 26 Walter, Pierre, and Vicheth Sen. 2018 27 For more information on this statistic, please see the United Nations World Tourism Organization’s website: https://www.unwto.org/unwto-tour- ism-dashboard 28 For more information about the new policy for ecotourism see the Phnom Penh Post’s 2018 article: https://www.phnompenhpost.com/business/ 16 ecotourism-policy-draft-approved For this ecotourism development to happen, the RGC Address several barriers that limit growth of 4 needs to: this sector 1 Develop an enabling environment for private There are a range of barriers that limit the growth sector activity in the sector of the ecotourism sector. This include; inadequate governance, poor connectivity and related Private sector engagement in ecotourism in rural infrastructure, and unclear contracting Cambodia is still in its infancy and inconsistent arrangements for ecotourism development in its approach. The absence of clear regulations projects. Limited access to infrastructure and and inadequate definitions and guidelines on connectivity is an urgent issue to address. ecotourism, combined with a lack of standardized Investments are needed in infrastructure that agreements has led to a varying quality of improves access, such as rehabilitating roads to private enterprises. This creates disincentives improve the connectivity between ecotourism by attracting short-sighted entrepreneurs and corridors and circuits and their links with selected creating perverse incentives. These can potentially ecotourism hubs. Related rural infrastructure (for lead to degradation of the environmental services example, water, sewerage, power and the Internet) that the area provides. Plus, institutional capacity needs to be upgraded. In addition, site specific development related to identifying, prioritizing, infrastructure is also needed, such as signage, and managing ecotourism development is needed trails, waste collection, facilities, shelters, jetties, at all administrative levels. and water, sanitation, and hygiene (WASH). 2 Support upskilling and quality control of To make ecotourism a success, Cambodia must community-based ecotourism (CBET) operations create an enabling environment, particularly for private sector investment. The regulatory framework Examples from CBETs supported by must be clarified and the processes for making EIPs nongovernmental organizations (NGOs) show streamlined. Priority investments such as constructing how these could be successful. They offer a much needed infrastructure and investing in the high-quality set of ecotourism products and training and capacity building of employees would experiences, and some strategic interventions in greatly strengthen Cambodia’s position. communities on planning, upskilling, business and hospitality capacity development, and The Cambodia Sustainable Landscape mentoring. These examples include Stung Areng and Chambok (See Case Study 1. Stung Areng - A and Ecotourism Project (CSLE) and successful CBET site and Case Study 2. Chambok this Report E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A - A successful CBET site). However, investments Building on the momentum of the RGC’s efforts to are needed to truly optimize Cambodia’s develop Cambodia’s ecotourism sector, this analytical CBET potential. and advisory work on ecotourism development in PAs Increase Cambodia’s global ecotourism presence in Cambodia aims to bring evidence from international 3 and competitiveness by improving its current and national experiences to inform RGC’s thinking offerings and developing new tourism products about how to develop ecotourism in PAs in Cambodia. These include: There is a lack of business and entrepreneurial skills in ecotourism products and services. • The types of policies needed to This limits the quality and range of support ecotourism ‘nature-based’ offerings. • The public investments needed to develop ecotourism 17 • The most strategic areas for these policies • provide support to the private sector for and investments destination marketing and branding, • The strategies to increase private sector • develop new ecotourism products, and participation in ecotourism in protected areas. • invest in connectivity to ecotourism sites within the Cardamoms This advisory report provides clear guidance to the • integrate the protection of forest resources RGC on specific activities that should be undertaken into ecotourism development as forests are for ecotourism development under the CSLE Project. 29 the key asset for ecotourism. Strengthening PA management and promoting inclusive growth of Finance from the CSLE project will enable the RGC to: rural communities are the entry point for this. • improve the enabling environment for private The analytical work on ecotourism will also be sector investment in ecotourism with new policies expanded to Cambodia’s coastal areas with funding and clear guidelines for ecotourism development from the ProBLUE trust fund, and will inform a regional in protected areas approach for ecotourism development with funding • develop the Cardamom Mountains as an from the ProGREEN trust fund. ecotourism destination 29 For more information about this project, see: https://projects.worldbank.org/en/projects-operations/project-detail/P165344?lang=en BOX 1. PRIVATE SECTOR IN ECOTOURISM Governments and PA Authorities are under increasing financial sustainability. In Namibia, joint venture pressure to preserve the beauty and biodiversity of lodges in Etendeka, and the Palmwag conservancy their beaches, parks, and pristine natural sites, while resulted in the expansion of the ecotourism lodge, also growing tourism activity. Is it possible to do both? a six-fold increase in local staff hiring and seven- fold increase in revenue. The increase in concession Creating EIPs is one solution. The private sector can fees has provided the finance needed to allow the E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A be an important partner in helping PA authorities park authorities to reinvest the money back into achieve their twin goals of conservation and conservation. attracting visitors. However, delivering successful EIPs is challenging and depends on the right In Cambodia there are a number of NGOs and mix of characteristics, technical expertise, and development partners who have already been institutional experience. partnering with registered businesses to support ecotourism development. It is recommended that Across Africa, there are examples of the benefits of these stakeholders are the first to be included in private sector participation in running ecotourism discussions on how best to develop a sustainable joint venture lodges. The private sector brings in ecotourism industry in Cambodia. expertise and investment required for operations and they have better market access to generate Sumit Baral 18 BOX 2. ECOTOURISM AND PROTECTED AREAS (PAS) PAs often contain the plants, wildlife and natural Despite the importance of PAs for ecotourism, scenery that underpin ecotourism. Healthy plants revenues from ecotourism do not efficiently flow and wildlife, and beautiful landscapes and nature in back to PA management. This limits the ability of PAs are assets that create high value for ecotourism Cambodian PA authorities to manage the assets on that help generate about US$600 billion in annual which ecotourism depends. MoE’s NPASMP (2017- revenues from ecotourism in PAs. In turn, the 30 2031) recognizes ecotourism in PAs as a key strategy revenues generated from ecotourism are often used for supporting conservation and management in PAs. for the management of PAs. They also help to finance However, the MoE has not yet put in the place the the work of PA authorities including patrolling revenue management system (RMS) needed to ensure and monitoring services provided by rangers and ecotourism revenues flow back into PA management. communities, and conservation activities. The RMS will need to be part of an overall Partnerships between conservation and ecotourism improvement in the management of ecotourism contribute to changes in attitudes around the issues development in PAs which would include changes to of biodiversity conservation and environmentally the regulatory framework for tourism, benefit sharing responsible business practices.31 Visitor experiences mechanisms, and increase in compliance monitoring can be transformative for an individual’s personal of ecotourism operators in PAs. The country’s growth and well-being, while instilling an increased Environment and Social Fund (ESF) is intended to sense of stewardship and support for PA values. 32 be a key conduit of revenues to support PAs and It is well accepted that the management of will need to be aligned with the RMS as the current ecotourism development in PAs is critical for its configuration of the system is not clear on how sustainability; the table in Annex 1 summarizes the finance flows through the Fund.33 key opportunities and challenges of developing ecotourism in PAs. There are good local and international examples that MoE can look to for guidance on how to improve the A large proportion of Cambodia’s natural landscape way ecotourism revenues flow back to PA conser- and rich biodiversity is contained within PAs, vation and management. These include: Cardamom which makes them important for ecotourism. About Tented Camp in Trapeang Rung, Kbal Chay, and Chipat 7.4 million hectares of land (41 percent of Cambodia) and Areng in Koh Kong. International best practice is under the PA system and is managed by MoE. examples are covered in IUCN guidelines on ‘tourism 49 PAs exist across the country and include national partnerships and concessions for protected areas’ 35 E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A parks, wildlife sanctuaries, protected landscapes, and ‘Tourism and visitor management in multiple-use areas, Ramsar sites, biosphere reserves, protected areas’. 36 natural heritage sites and marine parks.33 Ecotourism activities in Cambodia are focused in PAs and several ecotourism operations (discussed in Section 4) are located in PAs. 30 Balmer et al. 2015 31 Bushell and Bricker. 2016 32 Leung et al. 2018:31 33 MoE. 2017 34 ESF was established by Sub-Decree 238 in November 2016. At present, the ESF is not actively utilized (Rohan. 2019). 35 Spencley et al. 2017 36 Leung et al. 2018 19 The Cardamom Mountains is home to some of the most pristine rainforest in Cambodia | Wildlife Alliance SPOTLIGHT 1. SOWING THE SEEDS OF ECOTOURISM IN THE CARDAMOM MOUNTAINS The Cardamom Mountains is one of the last it the largest area of virgin forest remaining in great wilderness regions of mainland Southeast Cambodia today. Asia, blanketing much of Southwest Cambodia in rainforest. An area of outstanding natural beauty The region is home to the highest mountain in and astonishing biodiversity, it offers significant Cambodia, Phnom Aural, at 1,813 meters, and potential for the development of sustainable some of the most dramatic waterfalls in the ecotourism for adventurous and environmentally country, including the popular Tatai Waterfall conscious travelers who want to venture off-the- and the impressive multi-level Stung Phong Roul beaten track. Waterfall near Sre Ambel. It is an area of rich potential for activity-based ecotourism, including The Cardamom Mountains region stretches across wildlife watching, jungle trekking, mountain five provinces, including Battambang, Pursat, Koh biking, dirt biking, kayaking, boat trips and more. Kong, Kompong Speu and Kompong Chhnang. With coordinated support and further investment, The region encompasses the largest protected it is also possible to envisage treehouses, canopy area (PA) in Cambodia, collectively known as walkways, ziplines, via ferrata and other E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A the Cardamom Rainforest Landscape, which nature-based activities. These activities are includes Southern Cardamom Mountains NP popular in the neighboring countries of Thailand (410,392 hectares), Central Cardamom Mountains and Laos and this allow Cambodia to compete NP (401,313 hectares), Phnom Samkos Wildlife more effectively. Sanctuary (333,750 hectares), Phnom Aural Wildlife Sanctuary (253,750 hectares), Cardamom The Cardamom Mountains offer the possibility to Conservation Corridor (169,469 hectares) and connect upcountry ecotourism adventures with Tatai Wildlife Sanctuary (144,275 hectares), adding coastal ecotourism experiences on the beaches, up to a total of 1,712,949 hectares of protected islands and PAs of the South Coast through the landscape. An impressive 62 percent of the international gateways of Koh Kong, Sihanoukville Cardamom Mountains is designated as PAs, with and Phnom Penh. National Highway 48 cuts around 70 percent remaining forest cover, making across the region from Sre Ambel to Koh Kong, 20 The Cardamom Mountains provide a home to pileated gibbons | Allan Michaud, CTC offering access to community-based ecotourism such as Asian elephant, Asiatic black bear, sun (CBET) projects deep in the Cardamom Mountains bear, pileated gibbon, dhole, clouded leopard and to the north and to up and coming beach and fishing cat. While some of this wildlife is difficult island destinations to the south, including the to spot for the average visitor, the establishment Koh Sdach archipelago. of key lodges throughout the region are helping to habituate some animals to the presence of Koh Kong has long been an established gateway non-threatening humans in their environment. to the Cardamom Mountains as it offers a range The Wildlife Alliance-operated Wildlife Release of local adventure tour operators in the town Station (WRS) near Chi Phat was one of the first and some small independent ecolodges located operators to offer close encounters with wildlife on the Tatai River about 20 kilometers east of in the forest canopy and more recently newer town. Local operators offer trekking, cycling, private sector ventures such as Cardamom Tented motorbiking and other multi-day adventures in Camp and Shinta Mani Wild are also offering the Cardamoms. Elsewhere across the region, the chance for guests to encounter some native there are a handful of CBET sites supported by animals in their natural environment, be it as part NGOs such as Chi Phat, Stung Areng and Osoam. of wildlife releases, ranger patrols or night safaris. These offer homestays or basic community-run E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A guesthouses, as well as independent camps and The Cardamom Mountains has the potential lodges offering a more sophisticated base. Other to appeal to travelers of all nationalities and regional gateways include Pursat to the north, budgets thanks to the diversity of destinations, Pailin to the northwest and Kompong Speu to experiences and accommodation on offer. the east. Young Cambodians have been venturing into the Cardamoms to experience a traditional When it comes to wildlife, the Cardamom rural lifestyle in the villages and help Mountains are home to a remarkable diversity grass-roots organizations protect the forest. of fauna, including critical populations of more These tourists are generally self-sufficient, and than 50 International Union for the Conservation comfortable camping out in tents or sleeping in of Nature (IUCN) red-listed threatened species local homestays. 21 4 Rivers Floating Lodge | Natasha Martin Backpackers or independent travelers are looking market is relatively untested at this stage, with for a similarly authentic community-based eco- only Shinta Mani Wild operating on the edge of adventure and have helped make Chi Phat one of the Cardamom Mountains and at a relatively early the most popular destinations in the Cardamoms. stage of operations to judge its success. As well as homestays, activities on offer include trekking, mountain biking, birdwatching and The Cardamom Mountains region is already wildlife spotting. However, Chi Phat also offers a attracting a small but growing number of cautionary tale in over-development with about adventurous international travelers and an 30 accommodation providers in one small village. increasing number of Cambodian domestic For this reason, some travelers are venturing tourists wanting to experience something further afield to Stung Areng or Osoam which are different from the usual homeland jaunt or less developed and more traditional. coastal escape. To date, the development has been organic and driven by conservation NGOs, Mid-range visitors now have the option of several community development and some private sector E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A established ecolodges, including the excellent investment. However, there has not yet been a Cardamom Tented Camp, as well as the long- coordinated attempt to brand and market the running lodges at Tatai, including 4 Rivers Floating region as the ecotourism hotspot in Cambodia. Lodge, Koh Andet Eco Resort and Rainbow Once the message is effectively communicated Lodge, all of which have proven themselves to that the Cardamom Mountains are open for be popular with Cambodian families looking for ecotourism business and the region is effectively an alternative escape from the city. The success promoted to a national and international of these providers suggests there is a mid-range audience, the number of visitors will grow market to explore some more remote areas of exponentially, boosting local incomes, tourism the Cardamoms providing there is comfortable revenues, and protected area budgets. accommodation available. The luxury end of the 22 Wildlife in the Cardamom Mountains includes Guar, Sun Bear and exotic birdlife | Allan Michaud, CTC Mist-clad mountains, dense jungle, thundering Mountains on a national and international stage, waterfalls, winding rivers, hidden wildlife, rare in tandem with the active participation of the birds and welcoming hosts, the nature of the private sector, will elevate ecotourism to the Cardamom Mountains is there for all to see. next level and help establish it as one of the key But now is the time to nurture this destination. pillars in Cambodia’s tourist economy. The branding and promotion of the Cardamom Nick Ray, April 2020 ….. now there is COVID-19 There have also been some studies of recovery scenarios post-COVID-19 which can help guide the The impact of COVID-19 on the tourism industry in actions needed to recover Cambodia’s tourism sector. Cambodia has been significant. The epidemic has This report includes a section that discusses the escalated rapidly from a health emergency to a full- impact of COVID-19 on Cambodia’s tourism sector. In blown economic crisis. Since the beginning of the addition, the report provides recommendations to the outbreak, several local and international surveys have RGC to help the recovery of the tourism sector post been conducted. These can help us understand the COVID-19. See the Recommendations section and impacts of COVID-19 on Cambodia’s tourism sector. Table 7 and Table 8. E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A 23 Shinta Mani Wild resort in the Southern Cardamom Mountains | Natasha Martin 2 ECOTOURISM AND THE NATIONAL ECONOMY Tourism is a vehicle for economic development and job creation. It provides a source of foreign investment and tax revenue, creates alternatives to traditional export-led sources of growth, and addresses poverty reduction directly.37 The Royal Government of Cambodia (RGC) sees tourism as an important strategy to promote national economic development and enhance global political, cultural, and economic integration. To achieve these objectives, the government aims to expand the tourism sector in an environmentally and socially sustainable manner. This includes the promotion of ecotourism initiatives. The data provided in this section and Section 3 were sourced from the Ministry of Tourism’s (MoT’s) annual statistical reports.38 However, these MoT reports do not provide specific data on ecotourism, except for data on tourist visits to ecotourism E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A and coastal sites (also considered to be ecotourism areas).39 Due to this gap in data, this section and Section 3 uses the trends in overall tourism to build an understanding for opportunities for ecotourism development. The Ministry of Environment (MoE) of Cambodia has also collected data relevant for ecotourism from community-based ecotourism (CBET) groups in 2017 and 2018. However, but data collection has not been systematic and regular, and the means of verification of the data are challenging as several CBET sites are not rigorous in issuing and managing receipts. 37 WB. 2017 38 MoT. 2009-2020 39 Specific combined data on ecotourism and coastal sites were only reported from 2015 onwards. 24 Contribution to Gross Domestic . Between 2010 and 2019, tourism’s contribution to GDP showed an overall upward trend and international Product (GDP) and Jobs tourist receipts accounted for an average of 17 The direct and indirect contribution of tourism to percent of Cambodia’s annual GDP.40 See Figure 4. In Cambodia’s GDP is substantial. In comparison with its 2019, international tourist receipts41 accounted for regional neighbors, the contribution of tourism to GDP about US$4.9 Billion42, in 2017 tourism accounted for is much higher. This includes Thailand which has a 25 percent of Cambodia’s total exports, and in 2018 comparatively better-developed ecotourism sector. See accounted for 83 percent of Cambodia’s commercial Figure 3. services exports.43,44 FIGURE 3. CONTRIBUTION FROM TOURISM TO GDP IN CAMBODIA IS HIGHER THAN ITS REGIONAL NEIGHBORS Laos Thailand Vietnam Cambodia 0% 5% 10% 15% 20% Percentage of annual GDP from Tourism % of 2018 GDP % of 2017 GDP Sources: MoT. 2018; World Bank Statistics45; UNWTO Statistics46 FIGURE 4. INCREASING INTERNATIONAL TOURIST RECEIPTS TO CAMBODIA PROVIDE A SIGNIFICANT CONTRIBUTION TO ANNUAL GDP 6,000 22.0% International Tourist Receipts (US$ Millions) Percentage of annual GDP from Tourism 5,000 20.0% 4,000 18.0% 3,000 16.0% E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A 2,000 14.0% 1,000 12.0% 0 10.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Sources: MoT 2018, World Bank Statistics 47 40 MoT. 2018 41 Tourism receipts are the earnings by a destination country from inbound tourism and cover all tourism receipts resulting from expenditure made by visitors from abroad, on for instance lodging, food and drinks, fuel, transport in the country, entertainment, and shopping (UNWTO). 42 See: https://www.unwto.org/unwto-tourism-dashboard 43 World Integrated Trade Solution (WITS). https://wits.worldbank.org/ 44 World Trade Organization https://www.wto.org/english/res_e/statis_e/daily_update_e/trade_profiles/KH_e.pdf 45 See: https://data.worldbank.org/ 46 See: https://www.unwto.org/unwto-tourism-dashboard 47 See: https://data.worldbank.org/ 25 Although Cambodia continues to attract a growing 2.7 million Cambodian jobs in 2017.51 The World number of international tourists, average daily Economic Forum (WEF) put forward a more modest yet spending across all overnight international markets still significant figure for 2018 of more than 1.3 million has declined. This negatively impacts tourist receipts direct and indirect jobs.52 and the contribution of tourism to GDP. Average daily 48 spending declined to an average of US$98.5 a day in Contribution to Local Economies 2018, down from US$120.70 per day in 2013. Industry experts suggest that a reason for this sharp decline Ecotourism has long been considered a core element may be due to the rise in overland Vietnamese tourists of enterprise-based conservation strategies in coming to Cambodia by bus from Ho Chi Minh City Cambodia. Since the mid-1990s, ecotourism has and the Mekong Delta on ultra-budget packages, and been promoted by global donors and international the increase in zero-dollar tourism. See Table 2. 49 institutions as a strategy to secure biodiversity Additional reasons for include: conservation in line with the 1992 Convention on Biological Diversity (CBD). At the same time, • Limited success in tourism destination and ecotourism was used as a strategy for local community product diversification leading to a decline in economic development. Ecotourism development goals spending by Group Inclusive Tours (GIT) are usually associated with: • Decline in the share of international arrivals by air • Conservation of pristine or distinct environments, after the global financial crisis in 2016 including Protected Areas (PAs) • Financing conservation through externalization of • Decrease in the share of GITs, who spend more on management cost average 21 percent more than free independent • Provision of alternative livelihoods to travelers (FITs).50 local residents • Stimulation of the national The World Travel and Tourism Council (WTTC) estimated economic development.53 that tourism contributed directly and indirectly to TABLE 2. AVERAGE DAILY TOURIST SPENDING IN CAMBODIA IN 2018 HAS DECLINED BY ABOUT 18 PERCENT COMPARED TO 2013 2013 2014 2015 2016 2017 2018 Market Share FIT GIT FIT GIT FIT GIT FIT GIT FIT GIT FIT GIT % 41.5 58.5 41.5 58.5 23.2 76.8 82.6 15.1 84.3 15.7 79.6 20.4 Average expenditure per tourist (in US$) Accommodation 148.57 N/A 127.5 N/A 129 N/A 125 N/A 125 N/A 126 N/A E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A Food and Beverage 84.42 N/A 119.43 N/A 123.5 N/A 120 N/A 125 N/A 126 N/A Local transport 80.04 N/A 65 N/A 64.5 N/A 73 N/A 74.5 N/A 75.5 N/A Package tours 983.46 N/A 345 N/A 355 N/A 342.5 N/A 368 375 Shopping 94.35 180.11 90 120 88.7 118 85 115.4 82 112 84 115 Others 79.03 101.07 80 100 79.5 101 75.5 95.5 72.5 97.5 75 98.5 Total 486.4 1,264.6 481.9 565 485.2 574 478.5 553.4 480 577.5 486.5 588.5 Average daily spending 120.8 93.5 95.1 92.5 95.5 98.5 Source: MoT. 2013-2018 Note: FIT: Free Independent Travelers; GIT: Group Inclusive Travelers; N/A: Not Applicable 48 World Bank. 2017 49 Zero-dollar tourism refers to packaged tours which are much less expensive than independent travel with one catch - tourists are taken on many shopping trips and are often required to buy overpriced products. Tour guides and drivers get a kickback from these shopping excursions, offsetting the loss on the tour’s initial cost. Source: https://theaseanpost.com/article/made-china-zero-dollar-tourists. 50 World Bank. 2017; MoT. 2019 51 WTTC. 2019 52 WEF. 2019 26 53 Baromey. 2019 It is universally acknowledged that the natural assets Records of ecotourism revenues have not been in these areas need to be protected. At the same time, available to the public or not been properly national economic development and the livelihoods documented by the tourism sector in Cambodia. Data of dependent communities need to be addressed on the number of visitors to private ecotourism sites urgently. Hence, ecotourism or CBET interventions are and associated revenues are inaccessible. However, both ideal and convenient. there are some data on revenues recorded by the management committees of community-based Ecotourists tend to visit ecologically significant sites, organizations or nongovernmental organizations that is sites with iconic natural resources such as (NGOs) managing or supporting the CBETs and elephants, giant ibis, or sites that are nationally reported to the MoE. See Table 3. The data in Table 3 highlighted as having important species or ecological shows a wide range of daily tourist spend across the systems. This is particularly true for CBET sites that list of 18 CBETs, from US$5 to US$110. There is also a are close to Phnom Penh capital (within a day trip wide variation in the annual income across the CBETs timeframe) and with basic preparation and services. from US$176 to US$300,000. These data highlight the See Case Study 1. Stung Areng - A successful importance and potential of ecotourism to be a key CBET site. economic activity for local communities. TABLE 3. AVERAGE DAILY TOURIST SPEND AND ANNUAL INCOME FROM ECOTOURISM FOR 18 CBET OPERATIONS CBET Name Estimated Average Daily Income 2017 (US$) Income 2018 (US$) Tourist Spend (US$) Chipat 23 158,380 163,400 Chambok 13 53,950 12,690 Chrok La Emg Waterfall 10 54,280 26,000 Peam Krasob 15 61,070 87,970 Beoung Ka Chhang 15 2,350 473 Anlong Svay 5 15,000 25,000 Dong Phlet 63 10,261 3,600 Phnom Chreav 25 750 5,286 Reaksmey Phum Pi Kiri Beoung Kra Nhak 13 1,250 3,875 Areng 40 35,360 11,958 E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A Koh Sralau 10 7,000 25,000 Samros Tek Tleak Chay 40 800 N/A Preak Thnot N/A 7,727 20,345 Tmatboey 39 27,000 14,190 Tmor Rong N/A 3,075 7,257 Prek Toal 110 130,240 113,190 Mondol Yorn 33 290 176 Kampong Phlok 30 N/A 300,000 Source: MoE. 2017-2018 Notes: N/A: Information not available; 2017 and 2018 incomes were reported by community management committees and may be under- or over-reported; Estimated daily tourist spend was estimated by the authors based on site specific information 27 Income from ecotourism is particularly important the significant contribution that tourism makes for rural villages where households earn on average to Cambodia’s economy, local communities often US$430 per year.54 The community of Kampong Phlok struggle to benefit directly or indirectly from tourism in Siem Reap province is a good example. In 2018, dollars.56 Benefit-sharing mechanisms that allow local Kampong Phlok had an estimated annual income of communities to benefit and the local economy to about US$302,000, of which US$300,000 came be stimulated are needed, and agreements between from ecotourism. tourism operations for agricultural produce, food and transport services need to be negotiated.In Data on tourist spend at CBETs and annual incomes addition, the capacity of local communities to be also demonstrate the differing levels of quality across able to provide high-quality and reputable services CBETs. For example, the quality of ecotourism services needs to be increased. In the case of Chipat, Wildlife provided at the Chipat CBET is significantly better than Alliance played the role of broker in terms of setting other CBETs. This is due to the high and long-term up agreements, as well as providing sustained capacity investment by Wildlife Alliance55 in the development development to local communities. of ecotourism products, quality, skills and capacity of the community, and linking to international markets. This type of approach could be replicated with the This has enabled Chipat to command a higher price for support of the provincial governments helping to ecotourism services. See Case Study 1 and Case Study broker deals and ensure benefit sharing. However, 2 which help illustrate the importance of ecotourism official guidelines from the RGC are needed detailing to the economies of local communities. how this is done. In addition, national government needs to support these arrangements. The guidelines Contribution to Local Supply Chains and overall strategy for improving the flow of tourism benefits to the wider community should be informed Tourism providing economic benefits to the wider by a systematic assessment to provide evidence of community beyond direct employment is a desired the economic impact of ecotourism in PAs that benefit outcome yet to be achieved in Cambodia. Despite local communities and stimulate local economies.57 E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A 54 MoP. 2017 55 For more information on the Wildlife Alliance, see: https://www.wildlifealliance.org/ 56 Carter et al 2015. Sustainable tourism and its use as a development strategy in Cambodia: a systematic literature review. Journal of Sustainable Tourism, 2015 Vol. 23, No. 5, 797-818, http://dx.doi.org/10.1080/09669582.2014.978787 57 Such an assessment is being undertaken by the World Bank in selected tourism destinations around the world to assess the economic impact of PAs for regional economies that benefit other economic sectors (tourism, forestry, trade, infrastructure, etc.) and communities, and will provide methodology for doing this in Cambodia. 28 CASE STUDY 1. STUNG ARENG - A SUCCESSFUL CBET SITE Stung Areng CBET site is located in Koh Kong Province, at the base of the Cardamom Mountains (see SPOTLIGHT 1. Sowing the Seeds of Ecotourism in the Cardamom Mountains). Its model is a community private partnership - one of the recommended ecotourism models in Table 9. The area is covered in dense and diverse primary forest and home to a variety of wildlife, river life and birdlife. In 2016, with the support of Wildlife Alliance and all levels of government, eight villages came together to begin offering CBET activities to guests. Twenty-two families offer homestays in Stung Areng. A variety of activities are available for guests who stay at the CBET site, including trekking, kayaking and cycling. Local guides (many of whom were previously hunters Homestay accommodation at Stung Areng | Natasha Martin or poachers) take guests on hikes, including overnight camping hikes. That means 149 people have work as homestay hosts, forest cooks, motodop drivers (moto Ecotourism has had a big impact on these taxi), forest guides, or in management. About communities. First, it has created sustainable 45 percent of these people are women. Before, employment for local people. Second, it has many people in the community were using natural helped to protect the forest and its endangered resources in damaging ways such as hunting species (Siamese crocodiles, elephants, dragon or logging. Now, they have another way to earn fish, and more, are found in this region). income for their families.” When asked about the impact of the project on 80 percent of the income from the ecotourism his village, Tith Ly, the chief of the Stung Areng goes directly to the 149-person team working with Ecotourism project said: guests. The remaining 20 percent is allocated to a community fund that supports sustainable growth “For the community I think the biggest impact is E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A of tourism in Stung Areng. jobs. We have 149 service members in the project. Natasha Martin 29 CASE STUDY 2. CHAMBOK - A SUCCESSFUL CBET SITE Chambok CBET site is located near Kirirom Chambok CBET project is recognized National Park in Kompong Speu province. It internationally for excellence in community is mix between a community enterprise and a engagement and development. In 2013, Chambok community conservation partnership model of won a “To Do! Award”, from the Institute of ecotourism (See Table 9).The site’s proximity to Tourism and Development (ITB) based in Phnom Penh makes it a popular destination for Germany. The award is granted annually to weekend or even day trips from the capital. The tourism projects which support the participation highlight of Chambok is a 40-meter high waterfall of local people in decision making. In 2017, as well as scenic nature trails. The site also Chambok was nominated for “The National features important services for tourists such as Geographic World Legacy Award 2017” by guides, accommodation and food options. National Geographic Partners in collaboration with ITB Berlin, Germany. Chambok was developed in 2001 by Mlup Baitong58, a local environmental organization At the national level, the MoE and the MoT have in cooperation with the MoE. Ecotourism offers recognized Chambok for being a model for best a sustainable livelihood to local residents and practices in CBET including its strong contribution decreases deforestation previously caused by the to environmental conservation, decentralized production of charcoal. Revenues from the site natural resource governance, and promotion stay in the community to help with the long-term of non-extractive livelihoods. In 2018, the MoT protection of the forest. awarded a “Community-Based Tourism Model Award” to seven CBET sites including Chambok Community-based Ecotourism. Neth Baromey E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A 58 For more information about Mlup Baitong, see: http://mlup-baitong.org/ 30 Shinta Mani Wild resort in the Southern Cardamom Mountains | Natasha Martin ECOTOURISM VISITORS 3 AND SOURCE MARKETS International Tourist Arrivals Since 2013, there has been a steady increase in tourism in Cambodia. In 2019, Cambodia received 6.6 million international tourists, and recorded over 11 million domestic tourists in 2018.59 See Figure 5. The majority of tourists visiting Cambodia come for holiday. The Ministry of Tourism (MoT) now has plans to boost annual international tourism numbers to 10 million by 2025.60 A 2017 report by the World Bank on tourism in Cambodia provides a good analysis of source market performance and international arrivals.61 This report will highlight key trends and issues that are relevant for ecotourism. The numbers of tourists visiting coastal areas and ecotourism sites in Cambodia is growing, doubling between 2014 and 2019, and accounting for 16 percent of all E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A tourist visits in 2019.62 The Angkor Complex is Cambodia’s iconic destination and remains the main tourist attraction in Cambodia. However, growing numbers of visitors to ecotourism areas suggest potential for growth in this tourism segment. Data on visitor numbers from MoT in Figure 6 and Figure 7 show that growth in the number of tourists to coastal areas and ecotourism sites in Cambodia has been accelerating over the past five years with very high growth recorded between 2018 and 2019. 59 MoT. 2020 60 For more information on MoT plans to boost tourism, see this 2018 article by The Asean Post: https://theaseanpost.com/article/cambodias-am- bitious-tourism-plans 61 World Bank. 2017 62 Coastal areas are included in data on ecotourism by MoT, and some coastal areas like Sihanoukville have significant visitors for business and casinos. This means that ecotourism data likely captures visitors for non-ecotourism activities. 31 FIGURE 5. INTERNATIONAL TOURIST ARRIVALS BY PURPOSE OF VISIT FROM 2013 TO 2018 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 2013 2014 2015 2016 2017 2018 2019 Holiday Business Other Source: MoT. 2013-2019 FIGURE 6. VISITOR NUMBERS TO COASTAL AREAS AND ECOTOURISM SITES HAVE BEEN INCREASING STEADILY OVER THE PAST FIVE YEARS 100% 660,398 673,719 709,638 811,581 952,332 1,285,962 90% 80% 70% 2,205,697 % Visitors to different sites 2,124,863 2,205,274 2,457,282 2,590,815 2,350,937 60% 50% E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A 40% 30% 4,404,895 2,650.368 2,806,438 3,144,875 3,610,262 20% 2,151,838 10% 0% 2014 2015 2016 2017 2018 2019 Phnom Penh & Surrounding Siem Reap Angkor Coastal Areas & Ecotourism Source: MoT. 2014-2020 32 FIGURE 7. GROWTH IN INTERNATIONAL TOURIST ARRIVALS TO PHNOM PENH AND SURROUNDING AREAS, AND COASTAL AREAS AND ECOTOURISM SITES IS ACCELERATING WHILE GROWTH IN ARRIVALS TO SIEM REAP ANGKOR SITES IS DECELERATING 40.0 30.0 20.0 Percentage 10.0 0.0 -10.0 -20.0 2015 2016 2017 2018 2019 Phnom Penh &Surrounding (y.y % change) Siem Reap Angkor (y.y % change) Coastal Areas & Ecotourism (y.y % change) Source: MoT. 2015-2020 Although the number of visitors to Angkor Wat has As stated before, the trends suggest there is growing increased over the past five years, overall the rate of international and domestic interest in ecotourism growth is decelerating. In 2019, tourist arrivals to Siem offerings from Cambodia. However, the Angkor Reap dropped by about 20 percent compared to 2018, complex is still a major draw for international and compared to 2018, international tourism arrivals tourists. One response to this could be to diversify at Siem Reap International Airport fell by 14 percent. tourism offerings and create new multi-day tourist This was accompanied by a slowdown in Angkor ticket itineraries that combine Angkor cultural offerings with sales, down 13.1 percent compared to 2018.63 ecotourism offerings. Tourism industry experts have suggested several Source Markets for Tourism in Cambodia reasons to explain the deceleration. First, fewer Chinese tourists are visiting Siem Reap as more China is the largest international source market going to Sihanoukville’s coastal areas. Second, higher for international tourists visiting Cambodia (35.7 competition from neighboring countries, especially percent), followed by Vietnam (13.7 percent), Lao PDR E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A Vietnam, is drawing Chinese and South Korean tourists (5.5 percent) and Thailand (7.1 percent) in 2019. See away from Siem Reap. 64 Figure 8.65 The number of Chinese tourists has risen dramatically in the last three years with arrivals. From 2017 to 2019, the number increased by 95 percent. 63 Data from Department of Tourism (DoT) Siem Reap Statistics presented at the CBRE conference in October 2019 “Siem Reap Market Overview: What does the Future Hold?”. See: https://www.dfdl.com/resources/upcoming-events/what-does-the-future-hold-for-siem-reap-31-october-2019- phnom-penh/ The comparison of data between 2018 and 2019 is for the January to September of each year. 64 For more information about the decline of tourists at Angkor, see the Bangkok Post’s 2019 article: https://www.bangkokpost.com/busi- ness/1763394/tourist-decline-continues-at-angkor 65 MoT. 2013-2018 33 China is the LARGEST international source market for tourists – and the number is rising every year. FIGURE 8. TOP 10 INTERNATIONAL TOURISM SOURCE MARKETS BY YEAR FOR 2013 TO 2019 100% 80% 60% 40% 20% 0% 2013 2014 2015 2016 2017 2018 2019 China Vietnam Lao PDR Thailand South Korea USA Japan Malaysia France UK Russia Australia Other countries Source: MoT. 2013-2020 The increase is due to a concerted effort by the Royal products. See Figure 9. Tourism statistics from 2018 Government of Cambodia (RGC) to promote Chinese show four important tourist segments for Cambodia: tourism to Cambodia under the ‘China Ready’ strategy as part of its tourism policy. The strategy aims to have 1. Domestic Tourists two million Chinese tourists visit Cambodia every year. 2. Chinese tourists It promotes Chinese signage and documents for visa 3. Association of Southeast Asian Nations processing, encourages local use of the Chinese Yuan (ASEAN) tourists currency, promotes the use of Chinese language, hires 4. North American and European Tourists (traditional Chinese speakers, and prepares tourism materials source markets). in Chinese. In addition, sites can be accredited by E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A the government as being China-Ready by ensuring Chinese Tourists that food and accommodation facilities are suited to Chinese tastes.66 The main draw to Cambodia for Chinese tourists is Angkor Wat and the gaming industry. However, recent Other important source markets include the Republic research by Bannikin Travel and Tourism, found that in of Korea, USA, Japan, France, and the UK. 2018, 16.3 percent of outbound Chinese tourists were classified as ‘adventure tourists’.67 Adventure tourists There is a significant domestic market that provides an are defined as travelers who enjoy a mix of physical opportunity for developing tailored ecotourism activity, natural immersion and cultural interaction during their holidays. 66 World Bank. 2017; See Phnom Penh Post’s 2017 article: https://www.phnompenhpost.com/business/government-pushes-china-ready-poli- cy-tourism-sector 67 Bannikin Travel and Tourism. 2019 34 60+16+177D FIGURE 9. 2018 TOURISTS FROM ALL SOURCE MARKETS INCLUDING DOMESTIC VISITORS North America and Europe 7% ASEAN 17% Domestic 60% China 16% Source: MoT. 2019 Emerging trends among international Chinese Association of Southeast Asian Nations tourists are that free and independent travel is on (ASEAN) Tourists the rise. Whereas, a decade ago group travel was more characteristic of Chinese tourists. In 2018, The growth of low-cost carriers and an open-skies about 65 percent of Chinese travelers expressed a agreement has made intra-ASEAN travel more preference for independent travel.68 Cutting-edge accessible. Close proximity, simpler visa processes and technology, exotic foods, adventurous activities and similar cultures mean that these travelers are often accommodation with an authentic local flavor are attracted to the other countries in the region including characteristic of the demands of the new generation Cambodia.69 of Chinese travelers. For more information on new generation Chinese travelers, see Annex 4. Analysis of the ASEAN tourists found that safety and Characteristics of Independent Outbound security is the biggest issue. They are also greatly Chinese Tourists. influenced by social media and online influencers. E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A In 2018, travel by international Chinese tourists to There is a significant high-value market in ASEAN ecotourism areas increased by 5 percent. Analysis of countries that would visit ecotourism sites and should motivations of Chinese tourists to travel to ecotourism be tapped into through a trade marketing strategy. sites include time spent in nature, experiences of backpacking and camping, and photography for social North American and European Tourists media. However, activities that require technical skills, Traditional source markets refer to tourists from such as rafting, or mountain biking, are likely to be less Europe and North America. Analysis of this tourist popular among Chinese tourists. segment identified the preferences of different tourists 68 Hotels.com. 2018 69 For more information on projected tourist numbers, see Global Data’s 2019 press release at: https://www.globaldata.com/tourist-arrivals-to- asean-will-reach-155-4-million-by-2022-says-globaldata/ 35 from these regions. Lower-budget backpackers from to visit ecotourism sites is to get out of the city and traditional source markets have more time and are spend time with families. likely to go further afield to ecotourism sites. Mid- range travelers are often limited in their vacation Additional information on the above tourist segments time, and tend to visit Cambodia, and specifically Siem is available in the Annexes. Reap, as part of a broader Indochina itinerary. Finally, high-value tourists come to Cambodia through travel Decline in Non-Chinese Tourist Markets agencies, such as Abercrombie & Kent, and tend to in Cambodia Emphasize Urgency for visit five-star properties. See Case Study 3 on Shinta Tourist Product Diversification Mani Wild. While the total number of international tourists have This segment will visit ecotourism sites if there is increased between 2016 and 2019, tourist arrivals suitable accommodation to meet their needs, and they from major source markets70 (not including China) will spend up to 12 days in Cambodia. These tourists have decreased on average by about 1.6 per cent are usually motivated by unique and transformative between 2016 and 2019. Markets like South Korea show experiences, and pristine nature and cultural sites. consistent declines in tourist arrivals, and there are also reductions in visitor numbers from USA, UK and Domestic Tourists France. See Figure 10. This suggests a slowdown in overall international tourism to Cambodia. Domestic tourism is a significant tourist segment for Cambodia. However, there is insufficient market While it is unclear why the non-Chinese tourist market research on Cambodian tourists travelling is in decline, it may be that Cambodia’s main draw around Cambodia. card – Angkor Wat – is losing its appeal. Either way, it makes sense to urgently develop a more diverse Tourism industry experts note that ecotourism sites range of tourist products to attract larger numbers like waterfalls, rivers, and beaches are popular places of tourists. One strong opportunity is to develop for families to gather on weekends and holidays. This and boost ecotourism as a way of attracting more suggests that the main motivation for Cambodians international tourists. FIGURE 10. ANNUAL CHANGES IN ARRIVALS FROM KEY SOURCE MARKETS TO CAMBODIA ILLUSTRATE A DECLINING TREND IN ARRIVALS 40 30 E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A 20 Percent (%) 10 0 -10 -20 Vietnam Thailand Lao PDR South Korea USA Japan Malaysia France UK 2015/2016 2016/2017 2017/2018 2018/2019 Source: MoT. 2015-2019 70 These include: Vietnam, Thailand, Lao PDR, South Korea, USA, Japan, Malaysia, France, and UK. 36 CASE STUDY 3. SHINTA MANI WILD - A PRIVATE SECTOR CONSERVATION MODEL Shinta Mani Wild is located in the Southern experience in a safari-style tented camp. The Cardamom Mountains. The resort combines hotel made up of fifteen luxury tented camps adventure tourism activities such as hiking and along a small river. kayaking with a conservation ethos, partnering with Wildlife Alliance to protect the forest. Shinta Mani is a Cambodian-owned hotel group About 70 percent of the 120 staff members are which has two other properties in its portfolio; from the local community, offering an alternative (a) Shinta Mani Shack, and (b) Shinta Mani to logging. Angkor. These two properties are in Siem Reap. The Shinta Mani Wild property was designed by In the Cambodian context, two characteristics world-famous architect, Bill Bensley. Its design is of the Shinta Mani Wild model stand out. First, whimsical, playful and opulent. its price and associated luxury. As of March 2020, the price was US$2,300 per night, with a The Shinta Mani Wild property is located on an minimum three nights stay. The level of luxury 865-acre plot on a wildlife corridor between the was previously unseen in Cambodia, and barely Bokor and Kirirom National Parks. The site is available elsewhere in Asia. This has attracted a approximately three hours from Phnom Penh. It different segment of tourists that was previously is an eco-lodge, which has made considerable not coming to Cambodia. efforts to lower its environmental impact through waste management, water management, and The second is their commitment to conservation solar power, and made commitments to the local through their partnership with Wildlife Alliance. community and conservation efforts. The property Relationships between conservation organizations hires and trains local people and supports and accommodations are common in Africa, but Wildlife Alliance. less so in Asia. At Shinta Mani Wild, a percentage of revenue goes to fund the Wildlife Alliance Thanks to a public relations campaign valued rangers who ensure the forest is protected from at over US$1 million, Shinta Mani Wild was illegal logging, poaching and encroachment. In recognized with numerous accolades, including exchange for these funds, the rangers ensure being named one of ‘Times 100 Greatest Places to the forest surrounding the hotel is protected Visit 2019’. and guests can also go on walks with rangers, an authentic experience that shows the effort Shinta Mani Wild proves that tourism can be an required to protect the forest. important tool for conservation, and that E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A when tourism players team up with Located deep in the Cardamom Mountains, Shinta conservation players, the relationship can be Mani Wild is a luxury 5-star accommodation mutually beneficial. Aerial view of one tent at Shinta Mani Wild | Natasha Martin The lap pool at Shinta Mani Wild Natasha Martin Natasha Martin 37 Shinta Mani Wild resort in the Southern Cardamom Mountains | Natasha Martin 4 PRIVATE SECTOR ACTORS Trends Private sector tourism operators are already present in Cambodia providing a range of different offerings and experiences. See Table 4. There are 146 ecotourism operations in Cambodia. These consist of 87 community-based ecotourism (CBET) operations and 59 private ecotourism operations.71 Detailed data on ecotourism operations in Cambodia are limited. However, overall trends on the performance of private ecotourism operations can be drawn from analysis of the overall tourism sector in Cambodia – and this is on the rise. Between 2006 and 2019, the number of hotel accommodations tripled reaching E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A 1,050 hotels and 49,185 rooms in 2019. See Figure 11. The number of guesthouses and their capacity experienced even higher growth. In 2006, there were 742 houses with 9,166 rooms available. By 2019, the number of guesthouses and rooms had increased by approximately 300 percent to 2,170 houses with 35,343 rooms available. See Figure 11. In addition, the number of registered travel agents serving the tourism sector almost doubled. However, the growth of accommodations such as hotels and guest houses and travel agencies has eased in line with the overall tourism sector development for similar reasons described in Section 3.72 71 Baromey, Neth. 2020 [Draft] 72 World Bank. 2017 38 TABLE 4. DEFINITIONS OF PRIVATE SECTOR TOURISM OPERATORS Private Sector Actor Description Operators in Cambodia Accommodation Provider Accommodation providers provide lodging to tourists. • Shinta Mani Wild Including: hotels, guesthouses, homestays, lodges, • Cardamom Tented Camp camping sites. • Song Saa Resort • Véranda Hôtel Tourists may book accommodation direct with the • Pomelo homestay property or through an agent or operator. • Le Tonle Transport provider Transport providers provide transportation services to tourists, these include but are not limited to; airlines, buses, rental cars, and tuk tuks. Tourists may book transportation directly with a transport company or through an operator. Activity outfitter On-site experiences are delivered by activity outfitters, • Sorya kayaking for example: hiking tours, rafting, archeological tours. • Phnom Penh food tour • Cycle tours Outfitters provide the equipment and people (guides) • Urban forage necessary to provide an activity. An independent guide offering a tour would be considered an activity outfitter. In the past, tourists mostly booked activities through an intermediary, be it a travel agent office or tour operator. But with the proliferation of online travel agencies such as Expedia or Airbnb Experiences, tourists can book activities directly with the provider. Inbound tour operator (often refered to An inbound tour operator coordinates the tour packages • All dreams Cambodia as ‘DMCs’ - Destination Management within their own country. They create packages typically • Exo travel Companies) comprised of a variety of activities offered by different • Khiri travel outfitters, accommodation providers and transport • ABOUTAsia providers. However, they may also provide all those services themselves in a type of ‘all-inclusive’ package. The inbound operator can sell a package to the outbound operator. Outbound tour operator An outbound tour Abercrombie and Kent operator sells packages to tourists going out of their World expeditions country. They purchase a complete package from the Intrepid inbound operator. G-adventures Hauser The inbound operator acts as a ‘one-stop-shop’ for the Terres D’aventure outbound operator. The outbound operator then sells directly to tourists. E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A Ecotourism will require managing the growth of the numbers needs to be part of an overall destination sector in order to avoid negative impacts on protected planning exercise that considers the carrying capacity area (PA) resources and avoid an unsustainable of the PA73. The carrying capacity should be based growth. Too many guesthouses or lodges will attract on biophysical conditions and the desired tourist too many people and cause overcrowding. This, in turn, experience, the number of guesthouses and lodges will place too much pressure on the PA in terms of that can be accommodated, behavior of travelers, negatively impacting wildlife habitats and significantly travel methods, and the number of visitors that can be diminish the nature experience. Managing visitor accommodated in the PA. 73 “In the context of tourism, the term ‘carrying capacity’ refers to the maximum number of people that may visit a tourist destination (here, a protected area) at the same time, without causing (i) destruction of the physical, economic and sociocultural environment, and (ii) an unacceptable decrease in the quality of visitors’ satisfaction.” Leung et al. 2018:35 39 FIGURE 11. HOTELS, GUESTHOUSES, AND TRAVEL AGENTS HAVE INCREASED SIGNIFICANTLY BETWEEN 2006 AND 2019 3,000 60,000 # Hotels, Travel Agents, Guesthouses # Hotels and Guesthouse Rooms 2,500 50,000 2,000 40,000 1,500 30,000 1,000 20,000 500 10,000 0 0 2006 2010 2015 2016 2017 2018 2019 Hotels Travel Agents Guesthouses Hotel Rooms Guesthouse Rooms Source: MoT. 2006-2020 Performance of Ecotourism Challenges Private Sector Despite the growth of tourism and ecotourism and Private ecotourism enterprises in Cambodia have been the strong contribution made by the private sector, repeatedly reported in local and some international there are several issues which challenge continued news and media to have enhanced Cambodia’s growth. Consultations with tourism industry experts attractiveness and competitive advantages in the and private sector operators revealed a range of tourism sector and increase the number of visitors challenges faced by the private sector in developing and investors to Cambodia. This has contributed to 74 and operating ecotourism enterprises in Cambodia.76 diversification of Cambodian tourism products from Many of these challenges are not unique to the concentrating on cultural and archeological heritage tourism sector and are experienced broadly by the destinations as well as to enrich authentic and unique private sector in Cambodia. For example, analysis of local and natural experiences. The Ministry of Tourism entrepreneurial development in Cambodia revealed (MoT) recently awarded ‘Model Tourism Resort Awards’ the following challenges related to entrepreneurship to 26 ecotourism and non-ecotourism resorts in and private sector: E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A Cambodia based on three distinguished criteria: • Cambodia lacks a clear and coordinated strategy 1. Best resort management for entrepreneurship development 2. Good environmental consideration 3. Extensive information dissemination, well safety • Cambodia’s overall poor business environment performance, and high tourist satisfaction.75 limits entrepreneurial opportunity.77 The Cardamom Tented Camps provide an example of one of Cambodia’s model ecotourism operations. 74 Baromey, Neth. 2020 [Draft] 75 These criteria were announced on the MoT Facebook Page on 28 November 2018. It highlighted the key achievements of the Workshop on 2nd Model Tourism and Ecotourism Resort Competition and the 1st CBT/CBET Competition presided over by Minister of Tourism. 76 Consultations with tourism private sector operators took place in 2019 and early 2020 in Cambodia as part of World Bank technical assistance to the RGC on developing ecotourism. 40 77 Ehst et al. 2018 CASE STUDY 4. CARDAMOM TENTED CAMP - A PRIVATE SECTOR CONSERVATION MODEL Aerial View of Cardamom Tented Camp | Natasha Martin Cardamom Tented Camp is unequivocal about efforts. Additional profits are reinvested locally. the impact of a stay in their hotel. The hotel In exchange, Wildlife Alliance rangers patrol the has a 18,000-hectare ecotourism investment forest and guests at the hotel are able to go on project (EIP) in the Cardamom Mountains. It is patrols with them, go on ranger-guided hikes, and a private enterprise model of ecotourism (see learn to track animals and set up camera traps as E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A Table 9). The conservation objective is to ensure part of the activity offering. the forest is free of illegal loggers, poachers and sand dredging operations. Its tagline is ‘Your A unique element of this accommodation is the Stay Keeps the Forest Standing,’ and it is funded involvement of Yaana Ventures, which also owns by Minor Group and Yaana Ventures (the parent Khiri Travel, a tour operator. Through their own company of Khiri Travel). tours, Khiri provides 20 percent of guests to the lodge, reducing the marketing burden on the The Camp consists of nine tented camps in Botum accommodation. Sakor National Park. The cost (as of March 2020) is US$350 per night. The camp has a partnership This model shows the benefit of partnering with with Wildlife Alliance, whereby a percentage of its a tour operator who can help ensure a certain revenues support Wildlife Alliance’s conservation amount of occupancy over the year. Natasha Martin 41 Lack of Government Marketing Support and Expertise Cambodia’s image at global trade fairs and attract positive media attention noted as an importance There were concerns expressed about a lack of influence on many tourist segments. sufficient marketing support and expertise from the Royal Government of Cambodia (RGC). First, there Low Levels of Coordination among Ecotourism Actors is limited comprehensive market segmentation Coordination among tourism industry stakeholders is information available to allow the private sector to weak. In addition, there is a lack of formal integration develop effective marketing strategies. Second, there of ecotourism enterprises along the vertical value is a lack of clear communication around the marketing chain. This is characteristic of the tourism sector plans of the MoT and this frustrates the ability of the in Cambodia. Destination management companies private sector and government to cooperate. operating or owning accommodation and transport A simple example includes communication about companies do not exist. global trade fairs, such as the World Travel Market. Accessibility and Connectivity Infrastructure Usually, the private sector will have a table within the booth of their destination. However, it is common Connectivity infrastructure (including roads and for MoT to only inform operators about MoT’s bridges) and essential services (electricity, broadband participation a few weeks before the event. Such short internet, water supply and waste management) is notice makes it impossible for the private sector to insufficient in Cambodia to support the development plan ahead, and to collaborate with the government in of ecotourism and makes it difficult for tourists to this respect. access sites. In addition, its quality is below that of most Association of Southeast Asian Nations (ASEAN) In addition, government capacity to design and destinations. See Figure 12. implement effective marketing campaigns is low.78 Coordinated marketing efforts would improve FIGURE 12. ROAD DENSITY IN CAMBODIA IS LOWER THAN SEVERAL ASEAN DESTINATIONS 600 km of road / 100 km2 of land area 500 400 E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A 300 200 100 0 Cambodia Philippines Thailand Vietnam Lao PDR Brunei Indonesia Malaysia Myanmar Singapore Source: Compiled from ASEANStatsDataPortal. 2018.79 78 World Bank. 2017 79 Source: ASEANStatsDataPortal. 2018. Total Road Length in kilometers (accessed 1 March 2020). https://data.aseanstats.org/indicator/ASE.TRP. ROD.A.001 42 Road Networks quality environmentally friendly infrastructure but also services like waste and wastewater, clean water While the road network has expanded during supply, and access to reliable electricity. Infrastructure the last several years, the roads to secondary improvements and service delivery in secondary destinations have not benefited from this investment. destinations have not kept pace with demand. The This continues to make access to secondary sites reasons for this are mainly due to a lack of funding. significantly difficult, especially to mountainous and However, there are also capacity constraints for forested areas like the Cardamoms. construction and maintenance, low population density in rural areas, and limited decentralization Service Provision planning. This is in contrast to its neighbors. Cambodia lags behind its neighbors on benchmarks for Quality infrastructure is essential for tourism and competitiveness including on health and hygiene. See should not only include good connections and Figure 13 and Figure 14. FIGURE 13. CAMBODIA CONSISTENTLY RANKED LOWER TRAVEL AND TOURISM COMPETITIVENESS COMPARED TO ITS REGIONAL NEIGHBORS 120 98 98 87 100 94 90 83 80 75 63 Global Rank 60 56 55 56 47 40 32 32 29 31 23 18 20 0 2015-2016 2017-2018 2017-2018 Malaysia Thailand Vietnam Philippines Cambodia Lao PDR Source: World Economic Forum (WEF) Travel and Tourism Competitiveness Reports 2015-2016, 2017-2018, and 2019 Note: Ranking for 2015-2016 and 2019 are based on assessment of 140 countries; ranking for 2017-2018 is based on assessment of 137 countries. E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A FIGURE 14. CAMBODIA SCORES LOWER ON SEVERAL TOURISM COMPETITIVENESS INDICTORS COMPARED TO ITS REGIONAL NEIGHBORS Health and Hygiene 6 4 Malaysia Thailand 2 Philippines Tourist Service Air Transport Vietnam Infrastructure 0 Infrastructure Cambodia Lao PDR Source: WEF. 2019 Note: Scores range from 1 to 7, where 1 = worst and 7 = best Ground and Port Infrastructure 43 Internet Services required to access ecotourism sites. If it was quicker and easier to connect between Siem Reap, Phnom Improved internet services are needed as ecotourism Penh or other hubs, this would allow the private sector becomes increasingly reliant on digital services. Online to sell more ecotourism experiences as an add on. bookings and payment systems like Expedia, Venmo and PayPal are important for increasing efficiency in In addition, domestic flight schedules are continually the ecotourism sector, and online marketing platforms being changed by carriers. This makes it difficult for and social media are necessary for domestic and private sector tour operators to plan as they sell international marketing. Social media is also an itineraries months, and sometimes years in advance. important part of the tourism experience for many and The private sector would benefit from maintaining tourists expect to have access to the internet to be consistency in the schedule of domestic flights. able to post immediately to Instagram and Snapchat. Overcrowding at Key Sites Cambodia has shown strong growth in mobile internet The private sector is concerned that overcrowding at in urban areas, but internet penetration in rural areas key sites diminishes the quality of the experience for like PAs needs to be enhanced to serve ecotourism. the tourist. Tourists are disappointed by what they The fast rate of growth of internet in Cambodia is an experience, and this creates a negative perception of encouraging sign that internet penetration in rural tourism in Cambodia. areas can be increased to accompany ecotourism development. However, internet penetration rates in Creating more ecotourism offerings would also help to Cambodia are still low. See Table 5. reduce pressure in some areas. Cambodia Destination TABLE 5. INTERNET PENETRATION RATES IN CAMBODIA, Management Company (CAM DMC) is a group of leading VIETNAM AND THAILAND IN JANUARY 2020 inbound operators. They approached Apsara Authority in Siem Reap in August 2019 with a recommendation E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A Country Internet Penetration to manage the flow. This new arrangement would include allowing tourists to visit just one of the major Cambodia 58 percent temples (such as Angkor Wat and Bayon) per day and Vietnam 70 percent would extend the length of stay and disperse tourists Thailand 75 percent across the sites. No action has yet been taken on the recommendation. Source: https://datareportal.com/reports?tag=Digital+2020 Attracting and Retaining Talent Travel Times The demand for skilled tourism positions and quality Most international tourists to Cambodia visit Angkor human resources outpaces supply, and tourism Wat as part of a wider-Indochina itinerary. However, stakeholders struggle to attract and retain good staff currently operators are unable to easily add a one- members. This is a key barrier to improving tourism or two-day ecotourism experience due to the time service quality and retain good staff members. 44 Shinta Mani Wild resort in the Southern Cardamom Mountains | Natasha Martin ENABLING REGULATORY 5 FRAMEWORKS AND POLICIES Cambodia’s enabling and regulatory framework for ecotourism consists of several laws and lower-level policy documents. These include the: • National Ecotourism Policy (NEP) 2019-2030 • Protected Areas Law 2008 E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A • Law on Concession 1998 • Land Law 2001 • Draft Law on Tourism • National Protected Area Strategic Management Plan (NPASMP) 2017-2031. This section provides an analysis of the regulations and policies in order to identify where improvements can be made to facilitate a more enabling environment. 45 The National Ecotourism Policy Regulatory Framework for Ecotourism in 2019-2030: A Vision for Ecotourism Protected Areas (PAs) in Cambodia Currently, there is no specific policy in place to develop The Royal Government of Cambodia (RGC) through ecotourism in PAs. This is a major gap in policy the Ministry of Environment (MoE) and the Ministry of provision and frustrates the opportunity to sustainably Tourism (MoT) have developed a NEP for ecotourism scale up ecotourism in PAs. Review of the legal (approved in November 2018).80 This policy outlines the framework for ecotourism in PAs and current practices RGC’s plans to focus on and develop three key areas: of MoE on ecotourism highlight the key issues that need to be addressed with new policies. These issues 1. Large- and small-scale ecotourism operations. include: 2. Priority ecotourism sites 3. Private sector participation in ecotourism. • Conflicts in the three laws that support ecotourism (Protected Areas Law, Land Law, The NEP sets a strategic vision for tourism in Concessions Law) Cambodia “to transform Cambodia into a quality • No clear policy guidance for ecotourism tourist destination and a new ecotourism attraction investment projects (EIPs) with high competitiveness in the region and the • Lengthy process for securing EIPs world by creating ecotourism products that give • Lack of clarity on the roles of MoE in absorbing and highly quality experiences for tourists managing ecotourism to contribute to poverty reduction and promotion of • Lack of clarity of the services being offered by the natural resource conservation as well as effective government to private sector for prevention of climate change.” 81,82 The policy is part developing ecotourism. action plan, part cross-ministerial decision document and part-strategic action plan. It relies on the creation Conflicts Between the Laws of inter-ministerial committees and creates policies for the management of protected area (PA) ecotourism Analysis of the three key laws governing ecotourism investment project (EIP) operations. in PAs (PA Law, Law on Concessions, and Land Law) found that the legal framework for ecotourism in PAs While the NEP sets the overall vision for ecotourism needs to be simplified and refined83. It also found that it lacks the detail needed to implement and the overlap and inconsistency among the three laws operationalization the vision. The policy primarily makes it inefficient and cumbersome for potential focuses on the development of resorts and is geared investors, and this is likely to act as a deterrent. In towards private sector tourism development. However, addition, each law offers varying degrees of detail E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A opportunities exist for integrating private sector regarding ecotourism/commercial activities, and the and communities that would help develop new and Land Law has provisions which conflict with the other innovative ecotourism itineraries. These opportunities two laws. For example: should be explored and included in the policy. • The Protected Areas Law contains a simple statement authorizing ecotourism investment 80 For more information about the new policy for ecotourism see the Phnom Penh Post’s 2018 article: https://www.phnompenhpost.com/busi- ness/ecotourism-policy-draft-approved 81 NEP. 2018:5 82 The original document was in Khmer and this is a translation. 83 Pendry. 2019 46 project (EIP) activities: Article 11, 3: Sustainable No Clear Policy Guidance Use Zone: “After consulting with relevant ministries and institutions, local authorities, and local A key challenge for ecotourism development is that, communities in accordance with relevant laws and while most ecotourism development happens in PAs, procedures, the Royal Government of Cambodia there is no guidance provided in the legal framework may permit development and investment activities for PAs on how to do it. With lack of guidance, PAs are in this zone in accordance with the request from often mistakenly perceived to be beneficial to large- the Ministry of Environment.” This statement 84 scale development or spontaneous and impulsive appears to be in support of investment activities actions (such as large-scale infrastructures and but does not provide enough detail on facilities). In addition, there are challenges concerning the process. problems of overuse and confusion between ecotourism and nature-based mass tourism. This • The Law on Concessions provides considerable applies to large scale ecotourism sites in particular detail. However, it does not contain clear mainly due to limited mechanisms to regulate use provisions for non-infrastructure based EIP (such as contracts on design, product offers, and contracts, which is a key component for EIPs. energy consumption). • The Land Law appears to conflict with both the A number of clarifications must be made to these Protected Areas Law and the Law on Concessions. three laws before the regulatory framework is fit It has a provision in Article 49 that only allows for purpose. EIPs for “social or economic purposes” - defining social purposes as allowing “beneficiaries to Projected Areas Law build residential constructions and/or to cultivate Under the Protected Areas Law zoning only allows for lands belonging to the State for their subsistence.” recreational use in certain types of PAs and within Economic purposes are defined as allowing the certain zones. This limits the opportunities for public “beneficiaries to clear the land for industrial enjoyment and ecotourism activities. agricultural exploitation of land.” Neither of these two activities fit the ecotourism model and this Law on Concessions creates confusion and conflict. The Law on Concessions does not contain clear provisions for non-infrastructure based EIP contracts, The regulatory framework of the ecotourism sector which is a key component for EIPs. There are many continues to be expanded and improved. At present, ecotourism activities that require minimal investments the RGC has established the foundation of a legal in infrastructure such as hiking, bird watching or framework guiding the development of ecotourism wildlife viewing. The law currently lacks clarity in E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A initiatives in PAs. However, the growth of the sector this area. depends on simplifying and refining the suite of policies and regulations in place. The Land Law The Land Law appears to conflict with both the Protected Areas Law and the Law on Concessions, as the social and economic ecotourism investment 84 The original document was in Khmer and this is a translation. 47 projects (EIPs) as defined in the law do not fit the investors in EIPs. In response to the challenges and ecotourism model. This lack of consistency between recommendations outlined above, this needs these three important regulations is creates confusion to include: and conflict. • Protection of the resources – only necessary and A New or Revised Legal Framework appropriate development • A Completive Solicitation Process or Unsolicited Successful ecotourism in PAs in Cambodia needs a Proposal Process revised legal framework. All stakeholders, including • Evaluation criteria the RGC as well as private investors, would benefit • Shortest viable terms from improved clarity in the legal framework. This can • Protection of investor in EIP interests be achieved by developing a new, simplified EIP law • Franchise Fees that applies to PAs only. Alternatively, a Decree specific • Transfer of Contracts. for PA EIPs could be issued. In either scenario, the new law or decree must contain appropriate provisions Recommendations related to these three laws are to inform and protect both the government and the expanded in discussed in Section 8 and in Table 8. E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A 48 4 Rivers Floating Lodge | Natasha Martin CHALLENGES AND 6 BARRIERS TO ECOTOURISM DEVELOPMENT IN CAMBODIA Despite the increasing popularity of ecotourism and its potential social, economic and ecological benefits to Cambodians, the sector continues to face challenges. These challenges include weaknesses in the regulatory framework and other sectoral barriers and will need to be addressed as part of development in the sector. E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A This section summarizes the challenges that were discussed with the previous sections, and lays the ground for the recommendations for enhancing ecotourism provided in Recommendations section. 49 Relatively Weak Enabling Environment noted by the private sector include incomplete legal frameworks and uneven enforcement of land claims for Ecotourism and regulations. Weak Policy and Regulatory Environment Inadequate Leadership and Coordination The National Ecotourism Policy (NEP) sets out the Ecotourism development in Cambodia is primarily led government’s strategy to develop the ecotourism by donor agencies, civil society and the private sector. sector but does not provide comprehensive guidance This can create distance between government agencies for ecotourism. There is no specific policy in place and local communities, making monitoring and for developing ecotourism in protected areas (PAs). regulatory enforcement difficult. Reliance on external In addition, overlap and inconsistency among the support and funding can also lead to ecotourism three key and relevant laws (PA Law, Land Law, projects being abandoned or converted into mass Concessions Law) is inefficient and cumbersome for tourism sites when funding ends. potential investors and likely to act as a deterrent. Most importantly, the current policies do not There has also been a history of failed tourism create incentives for private sector investments in development projects in Cambodia. Many projects ecotourism. The process for developing tourism have been unsuccessful due to lack of market products within PAs is unclear to most of the understanding, lack of connections with the private private sector. sector, and lack of coordination and collaboration between nongovernmental organizations (NGOs) who Low Regional Tourism Competitiveness set up projects and relevant stakeholders. This has left local communities suspicious of new incoming Cambodia’s tourism competitiveness is lower than its tourism projects, and wary of their promises. regional neighbors due in part to its relatively weak Communities may also be suspicious of new tourism business environment. The World Economic Forum’s projects if they have already experienced previously (WEF’s) Tourism and Travel Competitive Index for 2018 unsuccessful initiatives. ranked Cambodia 98th out of 140 countries, stating that Cambodia scored worse on indicators relating to Multiple government departments have a role ease of doing business. Cambodia had low scores for to play in the management of ecotourism. These ‘time to deal with construction permits,’ ‘time to start include the Ministry of Tourism (MoT), the Ministry of a business,’ ‘cost of starting a business’ and ‘efficiency Environment (MoE), the Ministry of Agriculture, Forest of legal framework in settling disputes’. For example, and Fisheries (MAFF), and the National Committee it takes on average 99 days to start a business in for Coastal Management and Development (NCCMD). Cambodia. By contrast, it only takes 4.5 days in E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A Unfortunately, these stakeholders are not well Thailand and 0.5 days in New Zealand. These indicators coordinated, and this can result in them obstructing are similar to the World Bank’s Doing Business rather than facilitating the development of ecotourism. Report ranking. Private ecotourism enterprises may also have limited interaction with relevant authorities, and this gets in This report put Cambodia 144th out of 190 countries in the way of proper monitoring and management of PAs. 2020.85 Tourism private sector operators have noted that it is difficult, time-consuming and expensive . for private companies to start a business. Issues 85 World Bank. 2020 50 Inadequate Planning and Management of sites, are not. In fact, Cambodia’s destination marketing is weaker than its regional competitors.86 Ecotourism Activities According to tourism industry experts, this is due to a Ecotourism Planning lack of funding, poor coordination between public and private sector, and unclear mapping of responsibilities Planning for ecotourism-related infrastructure between various ministries. Good destination development must be done with care and marketing attracts high-value tourists, ensures tourists consideration for the environment, especially in come from a variety of source markets, and can ecologically sensitive zones within PAs. While an increase dispersal to combat over-tourism. absence of infrastructure such as roads, hotels and restaurants can deter visitors, the construction of Inadequate Protection of resorts, parking lots and other amenities can also pose Ecotourism Assets risks to the ecology and landscape that gives the PA its value. The nature, culture and adventure resources are the reasons tourists visit Cambodia. It is critical to protect Planning must take into account the need for the assets that tourism trades on to ensure that adequate connectivity and access as this is a key tourism is a healthy industry for decades to come. challenge. Insufficient transport infrastructure and There are solid management plans in place for PAs. weak services hinder sustainable tourism development However, there is a problem with how these plans as many secondary destinations are unable to attract and regulations are implemented and enforced. The private investment in quality tourist number of staff assigned to oversee PAs is inadequate service infrastructure. to manage the large areas of covered by PAs in Cambodia. This limits the ability of the MoE to properly Ecotourism Market Research monitor PAs and may result in ecotourism operators failing to fulfill the requirements of their EIPs. Lack of market research is a major challenge. Without solid research data, it is impossible to make informed Capacity of PA staff to engage in proper planning, decisions, design effective products or marketing monitoring and reporting of law enforcement in campaigns. Data are absent on many aspects of PAs is inadequate, and staff often lack the tools the tourism industry in Cambodia. Revenue from and equipment for PA Law enforcement. Without ecotourism is not yet properly collected or recorded. enforcement of regulations designed to conserve Therefore, it is difficult to accurately determine the and protect, sites can easily be overwhelmed with number of visitors to private ecotourism sites and its visitation, causing degradation and reducing the associated revenue. In addition, the length of stay in quality of the experience at the site. Furthermore, E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A Cambodia has always been an issue. For the at least there is an opportunity to increase revenue collection the last two decades, there has been an effort to get at entry points of many cultural and natural assets in tourists to ‘Stay Another Day,’ in Cambodia. Cambodia. These funds can then be used to protect the assets. Waste management in Cambodia is Marketing and Branding significant in both terrestrial and marine areas, and negatively impacts tourism. Inadequate marketing and branding of tourism sites is another challenge. While Angkor Wat is well known, other sites in Cambodia, and especially ecotourism 86 WEF. 2019 51 Large visitor numbers, particularly during weekends Low Quality of Ecotourism Offerings and national holidays are blamed for environmental and Services disturbances in PAs such as the erosion of trails, destruction of vegetation and problems of waste One of the biggest causes for visitor dissatisfaction disposal. Many areas, both terrestrial and marine, are and negative environmental impacts is the low quality contaminated with trash which negatively impacts and inappropriate design of products and services tourism. Yet, these concerns are directly related to in many ecotourism sites. For example, sites may inadequate levels of infrastructure as well as the lack lack knowledgeable and competent guides able to of mechanisms to effectively regulate use. effectively communicate with visitors. The authority of the MoE to enforce regulations with Safety is also a critical consideration. This is respect to ecotourism development in PAs remains particularly true when ecotourism services include limited. The Ministry is currently understaffed activities similar to adventure tourism. In addition, with limited financial and technical capacities to current PA staff are insufficiently trained for adequately fulfill this role. Therefore, targeted ecotourism development. strengthening in this area would be advantageous. E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A 52 Shinta Mani Wild resort in the Southern Cardamom Mountains | Natasha Martin 7 COVID-19 – A NEW REALITY Impact of Travel Restrictions Since January 2020, travel restrictions have been implemented across the World as an attempt to curtail the spread of the COVID-19 virus. As a result, people are unable to travel (both locally and internationally) and tourism numbers have declined dramatically. Many tourists have also had to cut short their itineraries in order to E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A return to their respective countries to avoid border closures. This has had a major impact on tourist destinations and the tourist industry around the World. This in turn is adding significant economic pressures on these countries, are particularly dependent on income from especially those whose economies tourism. Cambodia is one of those countries. See Figure 15 for more information on how the impact of COVID-19 is expected to affect Cambodia, compared to other countries. 53 FIGURE 15. COUNTRIES WITH THE HIGHEST TOURISM DEPENDENCY AND WORST TOURISM RESILIENCY RISK SCORE Argentina, Armenia, Azerbaijan, Bosnia and Herzegovina, Botswana, China, Dominican Republic, Egypt, Severe Arab Rep.,El Salvador, Haiti, Albania, Cambodia, The Gambia, Honduras, Lao PDR, Lebanon, Jordan, Philippines Tourism Resilience Risk Score Lesotho, Mongolia, Morocco, Namibia, Nicaragua, Rwanda, Sri Lanka, Tanzania, Tunisia Bulgaria, Chile, Costa Rica, Estonia, Croatia, Georgia, Jamaica, High Malaysia, Mexico, Panama, Slovenia, Mauritius, Montenegro, Seychelles, Turkey, Uruguay Thailand High Severe Dependency, Tourism Contribution to GDP percent Notes: Tourism Resilience Risk score is made up of data from seven pillars selected from the World Economic Forum Travel (WEF) and Tourism Com- petitiveness Index (TTCI) and measures the degree of difficulty a country faces in recovering from the crisis. The pillars: (a) policy environment for business; (b) health and hygiene; (c) ICT readiness; (d) prioritization of travel and tourism by government; (e) international openness; (f ) air trans- port; and (g) tourist service infrastructure. Severe risk (WEF score ≥3.5); high risk (WEF score≥3); medium risk (WEF score≥2.5); low risk (WEF score ≥1). Tourism dependency rating is determined by tourism’s contribution to GDP: (a) severe ≥ 20% GDP in tourism; (b) high = 10-20 percent GDP in tour- ism; (c) medium = 5-9 percent in GDP in tourism; (d) low ≤ 5 percent in GDP in tourism. WTTC’s estimation of tourism’s contribution to GDP (24%) in Cambodia was used for the analysis. Source: World Bank. 2020 [unpublished] International Tourism percent during 2020 and recommends that tourism should be an important part of any recovery plans.88,89 An international survey of tourism operators reported In 2021, it is expected there will be an overall 38 a 63 percent decrease in travel bookings from percent decrease in business volume compared E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A January to March 2020 compared to the same period to 2020. in 2020. The same survey reported a 29 percent 87 estimated loss of 2019 equivalent revenues in 2020 The Royal Government of Cambodia (RGC) has imposed due to cancellations. This gives a strong indication restrictions on both domestic (inter-provincial) and of the situation globally in terms of the economic international travel. This has resulted in marked losses being incurred globally because of COVID-19. In decreases in the inbound and outbound activity at fact, the United Nations World Tourism Organization Phnom Penh and Siem Reap International airports. (UNWTO) projects a fall in tourist arrivals of up to 30 See Figure 16 and Figure 17.90 87 ATTA. 2020. This Survey was taken by Adventure Travel and Trade Association (ATTA) in March 2020. The survey is based on the inputs of 162 firms representing tourism boards, travel advisors, activity providers, accommodations, media and industry partners from North America, South America, Europe, Asia, Latin America and the Caribbean. 88 For more information on the potential impacts of COVID-19 by UNWTO, see: https://www.unwto.org/impact-assessment-of-the-covid-19-out- break-on-international-tourism 89 See UNWTO’s article on the role of tourism from recovery from COVID-19: https://www.unwto.org/news/covid-19-unwto-calls-on-tourism-to-be- part-of-recovery-plans 54 90 The RGC imposed a ban on inter-provincial travel to restrict travel during the scheduled period for Khmer New Year (April 10-14, 2020). The government also postponed Khmer New Year to reduce domestic travel. FIGURE 16. CHANGE IN AVERAGE NUMBER OF DEPARTURES FIGURE 17. CHANGE IN THE AVERAGE NUMBER OF DEPARTURES FROM PHNOM PENH AIRPORT - MARCH TO APRIL 2020 FROM SIEM REAP AIRPORT - MARCH TO APRIL 2020 70 35 60 -85% 30 -98% 50 25 Number of flights Number of flights 40 20 30 15 20 10 10 5 0 0 9-Mar 11-Mar 13-Mar 15-Mar 17-Mar 19-Mar 21-Mar 23-Mar 25-Mar 27-Mar 29-Mar 31-Mar 2-Apr 4-Apr 6-Apr 9-Mar 16-Mar 23-Mar 30-Mar 6-Apr Source: FlightRadar24 in Garcia (2020)91 Source: FlightRadar24 in Garcia (2020) During the first three months of 2020, the numbers of the main practice to limit the spread of COVID-19. As a international visitors to Cambodia fell dramatically. result, Cambodians did not travel as extensively and Figure 18 shows a 63 percent decrease in the number frequently across the country in the first half of 2020. of international visitors in January and February of See Figure 19. 2020 compared to 2019. Social distancing and fewer financial resources mean The decline in international visitors impacts across that spending in restaurants and on entertainment the whole tourism industry in Cambodia. Tourist has declined. In addition, the postponement or services like hotels and guest houses are either closed cancellation of major holidays in Cambodia like Khmer or operating at less than 25 percent of their original New Year celebrations has added to the decline in capacity. Tour companies are also closing or operating domestic tourism. This decline is likely to be felt at a minimal level. The reality for many Cambodians strongly by community-based ecotourism (CBET) sites involved in the tourism industry as tourism service who earn tourism revenues from many of the local E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A providers (TSPs), or as employees of service providers, sites like waterfalls and rivers that domestic will be harsh. Income from tourism is already declining tourists visit. and, for much of 2020, this will decrease to zero as the world deals with and recovers from the COVID-19 crisis. These financial pressures caused by COVID-19 will This reality can already be seen in Cambodia. See result in a loss of jobs for many workers in Cambodia’s SPOTLIGHT 2 – Siem Reap is Empty. tourism sector. Businesses and organizations will need to furlough or lay off staff in order to reduce expenses Domestic Tourism or because they have shut down completely. All bars, karaoke bars (KTVs), beer gardens, casinos and beauty COVID-19 has not had significant impact on domestic salons have been required to close. In addition, many tourism in Cambodia. Comparing similar periods in hotels and restaurants have voluntarily closed their 2019 and 2020, there was only a 5 percent decline in doors due to a lack of clientele. domestic visitors to nature sites. Social distancing is 91 Garcia. Andres. 2020 [unpublished] 55 FIGURE 18. DROP IN NUMBERS OF INTERNATIONAL FIGURE 19. DROP IN NUMBERS OF KHMER VISITORS TO COASTAL AND TOURIST ARRIVALS TO CAMBODIA – 2019 AND 2020 ECOTOURISM SITES IN CAMBODIA – JANUARY TO MARCH 2019 AND 2020 63% DECLINE IN TOURIST ARRIVALS COMPARING 2019 TO 2020 5% DECLINE IN DOMESTIC VISITORS TO NATURE SITES COMPARING 2019 TO 2020 2,000,000 1,400,000 1,200,000 1,500,000 Number of visitors Number of visitors 1,000,000 800,000 1,000,000 600,000 500,000 400,000 200,000 0 0 2019 2020 2019 2020 January February March Coastal Zone Ecotourism Source: MoT. 2019-2020 Source: MoT. 2020 SPOTLIGHT 2. SIEM REAP IS EMPTY Siem Reap is the number one tourism In 2019, there were 6.6 million international destination in Cambodia thanks to its role as the arrivals in Cambodia and the tourism sector international gateway to the temples of Angkor. It generated US$4.91 billion, an increase of 12.4 is one of the most popular tourism destinations percent on 2018. 2.2 million tourists visited the in Southeast Asia and high on the bucket list for Temples of Angkor bringing much needed tourism any traveler exploring the region. The Temples dollars into Siem Reap for accommodation of Angkor have been voted the Traveller’s Choice providers; restaurants, cafes and bars; shops, Best Landmark for three years in a row by galleries and market stalls; and attractions TripAdvisor users. and experiences. E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A Angkor Wat as seen on 1 April 2020 during the height of the global COVID-19 pandemic | Morgan Havet 56 The jungle temple of Ta Prohm and the face temple of Bayon also deserted during COVID-19 | Nick Ray In 2020, all this changed with the rapid spread International Arrivals in Cambodia in of COVID-19 around the world. Siem Reap is in First Two Months of 2019/2020 a state of suspended animation right now and Jan/Feb 201992 1,244,689 the local tourism economy is facing complete collapse. Implementation of national lockdowns Jan/Feb 202093 931,826 and physical distancing around the world, travel Tourism arrivals have dropped to zero in the restrictions in Cambodia (both inbound and past month as lockdowns, travel bans, and entry outbound), the mass cancellation of international restrictions have come into play and arrivals are flights and the growing economic crisis have predicted to remain close to zero into May and essentially grounded the travel industry in the even June. short-term. Tens of thousands of new jobs were created in the tourism sector in Siem Reap Visitors to the Temples of Angkor between 2000 and 2020, but many of these will now be lost in the short-term, as international Statistics for the sales of Angkor passes are tourism is on pause. already available as below and make for stark reading: International Arrivals in Q1 2020 Total Sales of 1/3/7 Day Angkor Passes E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A Updated tourism arrival statistics for Q1 2020 in Q1 2019 and 2020 are not yet available, but January and February Jan 2019 > 271,05094 Jan 2020 > 222,56195 statistics already show a sharp decline in arrivals before the COVID-19 crisis went global and much Feb 2019 > 273,259 Feb 2020 > 118,933 of this may be attributed to a significant drop Mar 2019 > 243,591 Mar 2020 > 42,169 in the number of Chinese visitors in February as Wuhan and other major cities went into lockdown. 92 MoT. 2019 93 MoT. 2020 94 Jan, Feb and Mar 2019 Angkor Pass Statistics: https://www.angkorenterprise.gov.kh/annual-news/2019/5/report 95 Jan, Feb and Mar 2020 Angkor Pass Statistics 2020: https://www.angkorenterprise.gov.kh/annual-news/2020/5/report 57 Pub St and Old Market in Siem Reap are mostly closed down during the COVID-19 pandemic | Philippe Janowski There was a dramatic decline seen in ticket sales Events have been moving too fast for any in February as Chinese visitor numbers collapse organization to complete an accurate record of and then an even bigger decline in March as what is open and closed at this time, but first- lockdowns, travel bans, airline cancellations and hand observations in Siem Reap suggest that more come into effect as a result of the about 75 percent of accommodation providers COVID-19 spread. have temporarily closed. This includes most of the big four-star and five-star brands that DMCs work The March 2020 figures are also artificially inflated with such as Raffles, Sofitel, Le Meridian, Park by pre-paid passes for destination management Hyatt and Belmond. Collectively, accommodation companies (DMCs), so the actual number could providers in Siem Reap employ thousands of staff be 50 percent lower and in the range of 20,000 who will now be stuck in limbo with limited or no visitors. Most travel companies buy in advance pay until at least the end of June 2020. to secure a discount and these passes have not been refunded by Angkor Enterprise but deferred. The Impact on Restaurants, Cafes and Bars in Siem Reap According to conversations with Angkor Enterprise ticketing staff in Siem Reap, April figures will Pub Street and Psar Char (Old Market) area be much more shocking, as an average of of town, dozens of businesses are shuttered, only 15 tickets are being sold per day. This will including restaurants, bars, cafes and shops. mean fewer than 500 tickets sold in April 2020 Most of the Old Market is closed with the E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A compared with 185,405 tickets in April 2019. exception of the produce section used by locals for everyday shopping. The Angkor W Group The Impact on Accommodation Providers in of restaurants (https://restaurant-siemreap. Siem Reap com/) is entirely closed, as are most of the Temple Group of restaurants and bars, including According to Trip Advisor, there are 1,508 all their restaurants and bars in Pub Street properties96 in Siem Reap, including hotels, itself. Once again, the impact on staff cannot be resorts, guesthouses, hostels and homestays, underestimated with the vast majority of places the vast majority of which are shut and have closed. According to Luu Meng, President of the furloughed staff. 96 See: https://www.tripadvisor.com/Hotels-g297390-Siem_Reap_Siem_Reap_Province-Hotels.html 58 Cambodia Tourism Federation (CTF), other sectors that supply the tourism economy, which includes the Cambodia Restaurant including the local farming sector, food and Association (CRA), there are 950 restaurants in drink wholesalers, laundry services, IT support, Siem Reap, excluding beer gardens and bars, advertising, website design, e-commerce and he estimates that 90 percent of these are providers and more. currently closed. The Impact of COVID-19 on the Tourism Economy Freelance Tour Guides and Drivers in Siem Reap Siem Reap is also home to around 2,500 licensed Siem Reap is a tourist town. The travel industry tour guides who show tourists around the has stopped dead in its tracks. Nobody is temples of Angkor and other attractions in the travelling right now and may not travel again until area. The guides here are considered some of at least July and August, more likely much later the best in the region thanks to their depth in the year. The world is suffering unimaginable of knowledge and outgoing personalities, and emotional, psychological and economic trauma G-Adventures’ Meas Chantha was voted the Best right now as a direct and indirect consequence of Tour Guide in the World in 2019 . These guides are 97 COVID-19 and we cannot be certain how this will all currently unemployed and may not have any impact on travel patterns after the pandemic is new clients until at least July 2020. There are also eventually brought under control. several thousand freelance drivers in Siem Reap, driving company vehicles such as buses and The immediate impact of this crisis is the minivans, private cars and SUVs and tuk-tuks and temporary loss of thousands of jobs in Siem Reap, motos, most of whom will be out of work for the as hotels, restaurants, cafes, bars, shops and foreseeable future. markets shutter their businesses and furlough staff. This is not only a short-term shock to the Other Service Providers in Siem Reap staff that lose their wages, but for their families and dependents in the countryside who rely on a Beyond the hotels, restaurants and drivers and portion of these wages for their survival. guides, there are many other tourist-dependent services in Siem Reap, including shops, galleries, Many of the staff in the tourism sector in Siem spas, visitor attractions, activities and more, all Reap are recent migrants from rural villages in of which are now temporarily closed due to the Siem Reap or other parts of Cambodia and have absence of visitors. Most of the tourist stalls become important ‘rice-winners’ for their families. E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A in the Old Market were closed last week and It is not only salaries that contribute to these all museums and visitor attractions have been remittances to the villages, but also the tips for officially closed by the government since late- those that work in hotels and other customer- March. Spas and massage are also a popular facing businesses in the hospitality sector. activity in Siem Reap and all of these have also been ordered to close. Siem Reap may benefit from a domestic tourism rebound in the short-term, a regional rebound It is also important to consider the impacts on from Asian markets in the short-to-medium-term the value-chain economy in Siem Reap Province. and a long-haul rebound in the medium-term as When tourism stops, this inevitably slows down Europe and North America move into winter, but it 97 See: https://www.khmertimeskh.com/647864/its-official-the-worlds-best-tour-guide-is-cambodian/ 59 The Gallery of a Thousand Buddhas at Angkor Wat during the COVID-19 pandemic | Nick Ray depends on so many indeterminate factors such reboot the Cambodian travel industry and focus as the outcome of the fight against the virus, an on themes, destinations and attractions beyond easing of travel restrictions (both internal and the temples. However, moving forward it will be external), the reestablishment of international important to emphasize other themes such as the flight connections, the crisis impact on savings people of Cambodia, the emerging ecotourism and disposable income, and overall travel scene, and the relatively unknown cuisine. In the industry confidence. Siem Reap region, it will be important to promote attractions ‘beyond the temples’, including the Unfortunately, many of these factors are not villages of the Tonle Sap Lake and the holy under the control of the RGC, including the mountain of Phnom Kulen. Deutsche Gesellschaft simple act of re-establishing flight connections für Internationale Zusammenarbeit (GIZ) has that have now been suspended by international already promoted CBET campaigns for Visit airlines. Cambodia will face intense competition Banteay Srei and Siem Reap Beyond the Temples from larger regional players hoping to spend between 2015 and 2018. This is a trend that can be their way out of the crisis with huge marketing capitalized on. budgets, such as Thailand and Malaysia. Globally, every major tourism destination in the world will Siem Reap and the temples of Angkor can and be clamoring to rebuild their shattered tourism will recover from the impact of COVID-19. However, industries. It will be very hard to be heard amid the speed of recovery will depend on a timely, all this noise, so Cambodia will need to be nimble effective and coordinated response from the and smart in how it allocates its limited RGC, multilateral institutions and private sector financial resources. players. It is more important than ever that E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A there is unity across the sector. In addition, a The temples of Angkor are the symbol of a nation coordinated recovery strategy and clear message and exploring the temples without the crowds emanating from the tourism sector in Cambodia will be a unique selling point in the immediate is needed. recovery. There is also a unique opportunity to Nick Ray, April 2020 60 Impact on the Economy most affected by the crisis are also among the most employment intensive in Cambodia. For example, the The impact of COVID-19 on Cambodia’s national garment sector accounts for 16 percent of employment, economy and its tourism sector will be huge. Tourism construction sector accounts for 12 percent, and the normally accounts for approximately 16.7 percent of transport and hospitality sector cover 13 percent of Cambodia’s gross domestic product (GDP) and in 2019 non-agricultural employment.98 In addition, migrants tourism receipts totaled US$4.92 billion. returning home from Thailand, and the households that rely on their remittances, face significant income Using 2019 as a base year, there are three possible losses and a higher risk of falling into poverty. It is economic scenarios for Cambodia in 2020 depending estimated that already around 80,000 migrant workers upon the severity of COVID-19 outbreak. See Table 6. It have returned to Cambodia since the will take a long time it to recover from even the most COVID-19 outbreak.99 moderate of these scenarios. Skills and Institutional Memory Loss Unemployment and Increased Poverty A major risk facing Cambodia’s tourism industry is In the absence of significant mitigation measures, the loss of skilled labor and the subsequent loss the COVID-19 pandemic could result in sharply rising of institutional memory. Cambodia already faces a unemployment and increased poverty. The sectors challenge of maintaining a highly skilled tourism labor TABLE 6. THREE POSSIBLE ECONOMIC SCENARIOS FOR TOURISM IN CAMBODIA High-impact worst-case scenario – This assumes that recovery can only begin from November 2020 onwards Decline in arrivals in 2020 80 percent Loss of revenue US$2.77 billion Approximate number of tourism jobs affected (direct and indirect) 1 million Substantial-impact scenario – This assumes recovery can only begin from August 2020 onwards. Decline in arrivals in 2020 50 percent Loss of revenue US$1.7 billion Approximate number of tourism jobs affected (direct and indirect) 840,000 Moderate impact scenario – This is the most optimistic scenario that assumes Covid-19 comes under control within the first few months of 2nd quarter of 2020 and some major markets, like China, start to rebound quickly. Decline in arrivals in 2020 30 percent E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A Loss of revenue US$1 billion Approximate number of tourism jobs affected (direct and indirect) 650,000 Source: Authors’ own calculations Notes on the COVID-19 Scenarios analysis in Table 6: The scenarios created are based on projections provided by international tourism industry experts including the United Nations World Tourism Organization (WTO). The 80 percent, 50 percent and 30 percent decrease in arrivals are only indicative of what may happen. 2019 is used as a base year for the scenario projections for 2020. Tourist arrivals are estimated for three scenarios of tourist arrival decreases using 2019 arrival data as a baseline. Potential revenue loss from decline in tourist arrivals is determined: • For each scenario: Potential revenues from tourism = Estimated number of tourists in 2020*average daily spend*average length of stay in days. Average daily spend and average length of stay is assumed as constant at 2019 level. • For each scenario: Potential revenue loss = Potential revenue (2019 tourism earnings) – potential revenues from tourism under the scenario • Impact on employment was determined by: • Estimating the potential number of persons employed in each scenario as a factor of visitor arrivals and tourism earnings: No. Employed (2019)/ (earnings from tourism (2019) by est. number of arrivals 2020) • Impact on employment: No. employed in 2019- estimated number employed in each scenario. The scenarios and the numbers generated are indicative only and should not be used directly in policies or to determine investment needs. 98 World Bank. 2020 99 World Bank. 2020 61 force. Yet, it is highly likely that after COVID-19 there pay creditors, and this may result in delays in loans will be a significant loss of skilled labor as people payments and the potential for defaults on investment transfer to other jobs that can provide a more loans. Going forward, it may be more difficult to get certain income. new loans or credit because the tourism industry may now be perceived as high-risk. In addition, there may In an attempt to support the tourism industry, RGC has be less confidence among local operators about the implemented a policy to provide 20 percent of salaries economic viability of the local tourism industry. to tourism workers to help mitigate against this difficult situation.100 However, the reality is that salaries The novelty of COVID19 is creating apprehension about are already so low that 20 percent will not cover the length of the outbreak and depth of its impact on household needs. In addition, many households in human health and this is having a further impact on Cambodia are indebted already in some way often with the economy.101 The economic downturn that results high-interest loans. This adds an additional financial from COVID-19 will affect financial sector decisions and load on households already struggling to cope. increase risk aversion parameters when extending new credit. This lack of a capital safety net will mean that The loss of skilled labor will mean that, as the industry several investors and TSPs will be unable to re-enter recovers, TSPs will need to invest in training and the market. skills development of new staff. This will add to the costs and the time needed for tourism recovery Value Chain Impacts in Cambodia. These impacts on the tourism sector will inevitably Tourism Investors and TSPs extend to other sectors that are an integral part of the tourism value chain in Cambodia because of reduced Another impact of the COVID-19 is the loss of tourism demand. Data in Figure 20 show significant declines investors and TSPs, particularly those that are less in some tourism related services – retail, groceries well-established. Without a flow of revenues from and shops and recreation. See Figure 21 below of an tourism, investors and tourism service providers will example of a tourism value chain, and the services encounter liquidity problems. They will struggle to that are expected to be affected by COVID-19. FIGURE 20. CHANGE IN MOBILITY TRENDS FOR RETAIL AND RECREATION CENTERS -43% -29% RETAIL AND RECREATION GROCERY AND PHARMACY E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A +80 +80 +40 +40 Baseline Baseline -40 -40 -80 -80 Sun Feb 16 Sun Mar 8 Sun Mar 29 Sun Feb 16 Sun Mar 8 Sun Mar 29 Notes: Trends are created with aggregated, anonymized sets of data from users who have turned on the Location History setting. Baseline: median value, for the corresponding day of the week, during the 5- week period Jan 3–Feb 6, 2020.102 100 For more information about this policy, see: https://www.khmertimeskh.com/708509/measure-to-offset-tourism-sector-wages-amid-virus-gov- ernment/ 101 World Bank. 2020 102 See: https://www.google.com/covid19/mobility/ 62 FIGURE 21. EXAMPLE OF TOURISM SUPPLY CHAIN REAL ESTATE ARCHITECTS AND WHOLESALERS & WASTE TRADE BUSINESSES NURSERY GARDENING FINANCE AND BANKING SECTOR ENGINEERS DISTRIBUTORS MANAGEMENT SERVICES SECTOR MARKETING AND CONSTRUCTION AGRICULTURAL TELECOMMUNICATIONS SECURITY SERVICE TRAINING/DEVELOPMENT LAWYERS AND NOTARIES ADVERTISING AGENCIES INDUSTRY PROVIDERS INSTITUTIONS PRINTERS BUILDING MATERIALS FOOD PRODUCERS POWER COMPANIES LAUNDRY SERVICE MARKETING AND TEXTILE INDUSTRY MANUFACTURER PROVIDERS ADVERTISING AGENCIES IT SECTOR REAL ESTATE BEVERAGE WATER SUPPLY FURNITURE SOUVENIR SOCIAL AND SECTOR MANUFACTURER MANUFACTURER MANUFACTURER ECOLOGICAL PRODUCTS TRAVEL PLANNING & ARRIVALS ACCOMMODATION FOOD & BEVERAGE LOCAL TRANSPORT NATURE & CULTURAL LEISURE ACTIVITIES DEPARTURE BOOKING TOURISM TRAVEL AGENCIES AIRLINES HOTELS RESTAURANT BUS COMPANIES PROTECTED AREAS RETAIL SECTOR AIRLINES ONLINE AGENCIES SHIPOWNERS RESORTS CAFES BUS & TAXI MUSEUM SOUVENIR VENDORS SHIPOWNERS COMPANIES RETAIL SECTOR BUS COMPANIES HOLIDAY HOME FAST FOOD CAR RENTAL EXHIBITION LEISURE SPORT BUS COMPANIES PROVIDERS PROVIDERS COMPANIES FACILITIES PROVIDERS PUBLISHERS APARTMENT GROCERY STORES BIKE & MOPED THEATRES THEME PARKS PROVIDERS RENTALS LODGE OPERATORS PUBLIC MARKETS TUK OPERATORS SIGHTS AND VISITOR CENTRES ATTRACTIONS BED & BREAKFAST BAKERIES BOAT RENTALS HISTORICAL SITES HOMESTAYS STREET VENDORS RELIGIOUS SITES CATERING SERVICE CATERING SERVICE TOUR SITES E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A PROVIDERS PROVIDERS TOUR OPERATORS + INBOUND AGENCIES OTHER SERVICE PROVIDERS TOURISM SERVICE CHAIN TOURISM SERVICE PROVIDERS Adapted from Beyer, Matthias 2014. Tourism Planning in Development Cooperation: A Handbook. GIZ, Bonn 63 “Tourism should be part of COVID recovery plans” – UNWTO. 2020 Tourism in Recovery It is safe to assume that requirements will differ from source market to source market, just as they did As a cross-cutting economic activity, tourism can lead before the broad shut-down on March 30th, 2020.106 a wider economic and social recovery. This has been Long-haul flights through important hubs, such as proven by its response to past disruptions. It is a Bangkok, may not be available before the end of highly resilient sector and its ability to bounce back summer. Therefore, the first tourists to travel around is strong. Tourism will, and should, play a key role in Cambodia are likely to be domestic travelers, such as future recovery efforts.103,104 Cambodian citizens and expatriates living in Cambodia. Cambodia can expect to see three waves of tourists As the inter-provincial travel ban begins to be lifted, post COVID-19. both Cambodians and expatriates living in Cambodia will start to book holidays to see the ‘empty’ Angkor Wave one – Domestic Tourists Wat. However, Cambodians will probably choose to travel when the government announces the new dates The first tourists to travel around Cambodia will be for the Khmer New Year Holiday.107 domestic travelers. As of April 2020, the RGC has begun to lift the local travel bans, albeit it slowly.105 It is also Wave two – Chinese and Asian Tourists likely that short-haul commercial flights to China and other Association of Southeast Asian Nations (ASEAN) The second wave of tourists is likely to come from nations will become increasingly more available. China and other regional tourists. In 2019, 39 percent However, land borders are still closed and there are of tourist arrivals to Cambodia were Chinese tourists. still strict quarantine rules for people flying into the During the tomb sweeping holiday (Qingming was on Kingdom from outside. In addition, it remains to be April 4th) in China, news outlets, such as the South seen how long the RGC will continue to require health China Morning Post, shared images of packed tourism certificates and mandatory quarantines (which would attractions and restaurants – despite authorities deter leisure tourists). warning citizens to stay vigilant.108 This seems to suggest that people were keen to get outside E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A after lockdown. 103 PATA. 2020. Survey of tourism consumer groups across country to understand their willingness to travel and travel plans after the epidemic. Tourists surveyed came from 30 Chinese provinces, autonomous regions and municipalities including Beijing, Shanghai, Tianjin, Chongqing, Guang- dong, Hunan, Jiangsu, Sichuan, Henan, Xinjiang and Inner Mongolia. A total of 1,252 valid questionnaires were collected. 104 See: https://www.unwto.org/news/covid-19-unwto-calls-on-tourism-to-be-part-of-recovery-plans 105 https://www.garda.com/crisis24/news-alerts/331486/cambodia-inter-district-travel-ban-within-provinces-lifted-on-april-10-update-7 106 The first restrictions announced in relation to Covid-19 on March 14th, were health certificates from travelers coming from certain badly affected countries like Italy, Germany, France, Spain and the United States. That was later extended to all inbound foreign travelers. 107 The government confirmed that workers would be given a full five days off for this re-scheduled holiday. 108 See: https://news.artnet.com/art-world/china-tourist-destination-flooded-with-visitors-shutdown-1825956 64 An empty Angkor Wat is a tourist attraction in its own right. This provides a unique opportunity for the Cambodian tourism industry to promote and use to encourage a resurge of visitors. Oliver Wyman, a large consulting firm, found from recovery. Those who usually travel on organized tours a survey of Chinese travelers in March 2020 that 57 are more likely to play it safe and stay close to home percent of those surveyed said that their first post- in the summer. They will first need to reconnect COVID 19 epidemic trip would be to an Asian country. 109 with family and friends after the lockdown and ‘Getting closer to nature, safety and flexibility’ were make the most of the improved weather in the the key factors influencing their choice. In March 2020, Northern Hemisphere. Pacific Asian Travel Association (PATA) conducted a survey of Chinese travelers. This study found that The one exception might be the backpackers or Asian destinations are the first choice for travel abroad independent travelers on delayed gap years or after the epidemic. 1110 summer breaks from university.112 However, this is subject to the lifting of restrictions and the resumption However, the PATA survey also found that, in particular, of flights. It is expected that Western tourists are likely Chinese travelers surveyed would consider traveling to to start traveling to Southeast Asia from November and a destination that has not experienced a severe virus December 2020. situation, such as Cambodia. 111 The survey indicated that 45 percent of respondents said they would travel Flight Connections abroad in 2020 if it was possible. Regional tourists from small territories like Singapore and Hong Kong Flight connections could be a critical issue in the where there is a limited diversity of domestic tourism recovery. It cannot be assumed that all routes will offerings, may also form a part of this second wave. automatically resume when restrictions are eased. Countries will be working to different restrictions and Wave three – Western tourists timelines, so resumption may be bilateral on a route- by-route basis. The third wave of tourists to return will be Western markets, including Europe, North America, and Latin Some airlines will also not survive this crisis and America. COVID-19 arrived in these regions later than marginal routes will be scrapped. Vietnam Airlines (VN) E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A in Asia and this suggests that travel restrictions from has already announced it intends to sell its 49 percent these areas will also be lifted later. When travel does stake in Cambodia Angkor Air which may also impact become possible for these regions, domestic tourism on future routes subject to the operating base of the is likely to be highly promoted as a means of national eventual new shareholder.113 109 Penhirin, Jacques and Katie Sham. 2020. The online questionnaire was fielded in Mainland China in February. Oliver Wyman surveyed 1,000 travelers to understand how the COVID-19 outbreak has impacted their willingness to travel and their related preferences. Of the 1,000 respondents, 45 percent were male, and 55 percent were female; 61 percent of the respondents have a monthly income between RMB10,000 and RMB30,000 (US$1,400 and US$4,250). 110 PATA. 2020 111 Penhirin, Jacques and Katie Sham. 2020 112 Students will have been out of school or college and their spending may have dropped dramatically during the lockdowns. Some may decide to use their student loans or savings for a long-haul adventure trip while tourism numbers are depressed. 113 See: https://www.khmertimeskh.com/50712484/vietnam-airlines-stake-in-cambodia-angkor-air-up-for-sale/ 65 Cambodia is over-reliant on regional hubs and non- ecotourism is expected to become a hot pick among Cambodian airlines and this has been exposed as Chinese travelers. The Oliver Wyman survey found a major weakness in this crisis. It would be great to that Chinese travelers would prefer individual rather see a stronger national airline emerge from the VN than group modes of transportation when they travel sale. However, it is hard to imagine any of the leading internationally again and would be willing to spend international airlines will be looking to acquire stakes more on local experiences. This means that solo travel in small regional airlines at this time unless VN are experiences are likely to trend along with a preference willing to sell at a loss. for nature-based tourism. Environmental Threat to Protected This suggests that Chinese tourists will be looking Areas (PAs) for more opportunities to connect with nature and seek out experiences which enhance wellbeing and COVID-19 is putting increased pressure on PAs. health. It also means they will be looking for local As more people become unemployed due to the experiences, such as trying new foods.116 A strong fallout of COVID-19, they are more likely to turn to consumer trend of the increased appreciation for the illegal wildlife trade and to change land usage nature may lead to more and more travelers wishing to supplement incomes. 114 Already there is a rise in to enjoy natural sightseeing, biking, and hiking during illegal incidences of wildlife poaching in Cambodian their trips. PAs where tourism has declined. Three Giant Ibis’ (Thaumatibis gigantea), Cambodia’s national bird Infrastructure Development and a protected species, were killed in April 2020 Investments in ecotourism are green stimulus117 which in Chhep Wildlife Sanctuary, Preah Vihear Province. can create jobs immediately such as infrastructure The birds were killed illegally for trade in the local works (hiking and walking trails) for ecotourism market and for local consumption. Additional illegal and stimulate economic activity. Infrastructure reported incidences include poaching of 100 Painted development for ecotourism may be an opportunity to Stork (Mycteria leucocephala) chicks in March 2020 create jobs for some of the unemployed. Short-term at Cambodia’s Prek Toal Ramsar Site, and of globally and immediate employment can be created through threatened White-winged Duck (Asarcornis scutulata) development of ecotourism infrastructure like hiking and Sarus Crane (Antigone Antigone), as well as other and walking trails. Activities for connectivity under species.115 The Cambodia Sustainable Landscape and the Cambodia Sustainable Landscape and Ecotourism Ecotourism (CSLE) project has a component on PA law Project (CSLE) project like road rehabilitation and enforcement for which community patrolling activities construction of bridges and walkways, could be could be well-aligned. advanced to create short-term employment. E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A Using Ecotourism to Support Post- There may also be an opportunity to create short- COVID-19 Recovery in Cambodia term employment through engaging communities in protected area patrolling and monitoring. Changing Tourist Preferences Tourist preferences are likely to change post-COVID-19 and Cambodia needs to be ready for this. In particular, 113 Source: https://www.nationalgeographic.com/animals/2020/04/wildlife-safaris-halted-for-covid-boost-poaching-threat/ 114 Source: https://www.khmertimeskh.com/50714406/three-of-cambodias-national-bird-the-giant-ibis-killed-in-protected-area/ 115 Penhirin, Jacques and Katie Sham. 2020 116 Policies and measures to stimulate short-run economic activity, create conditions for long-term expansion of potential output, and enhance environmental outcomes both in the near- and longer-term. 66 Cambodia’s COVID-19 • additional capital injection for the Rural Development Bank to support Policy Response agroprocessing firms The RGC has introduced emergency intervention • establishment of a new small and medium measures to manage the current impact in affected enterprise (SME) Bank designed to support sectors and to ensure economic and social stability. In SMEs through co-financing and risk sharing with addition, it is implementing a COVID-19 masterplan to commercial banks address the health response to the crisis. • measures to improve the ease of doing business Announced responses include: • measures to improve trade facilitation, including • scaling up of existing social protection post-audit clearance schemes through cash transfers to poor and vulnerable households • measures to inject liquidity into the financial sector through the temporary lowering of • tax relief for the tourism118, garment, footwear, and capital and reserve requirements as well as travel goods manufacturing sectors regulatory forbearance. • retraining and upskilling programs for laid-off The estimated cost of the COVID-19 masterplan,119 workers in tourism, garment, footwear, and travel wage subsidy and training, cash for work, Rural goods sectors Development Bank (RDB), and supporting poor and • unemployment benefits for suspended workers vulnerable households amounts to US$504 million. The in garment, footwear, and travel goods sector of estimated cost of tax relief to the tourism, garment, US$70 per month (US$40 paid by the Government footwear, travel goods and tourism sectors as well and US$30 paid by the factory) as registration tax amounts to US$194 million. The total fiscal cost of RCG’s COVID-19 policy response is • unemployment benefits for suspended workers therefore estimated at US$698 million (not including employed in the tourism sector of 20 percent of social protection measures to be announced in early- minimum wage (paid by the Government) to mid-May 2020).120 • exemption of property registration tax for purchases below US$70,000 E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A 118 Tourism sector in this context means hotels, guesthouses, restaurants and casinos. 119 Excluding USD40 million received from IDA and Asian Development Bank for the COVID-19 Master Plan. 120 World Bank. 2020 [draft] 67 Cardamom Tented Camp | Khiri Travel Cambodia CREATE AN ENABLING 8 ENVIRONMENT FOR ECOTOURISM IN CAMBODIA E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A There is an opportunity for the Royal Government of Cambodia (RGC) to improve the ecotourism investment environment and make it more competitive. However, for this to happen, the multiple challenges that constrain the development of the ecotourism sector in Cambodia need to be addressed. Now there is an added challenge. The massive disruption to the global economy and the tourism sector caused by the COVID-19 pandemic, means that development of Cambodia’s ecotourism sector must take the impact of COVID-19 into account. Traveler preferences may change, and hygiene standards will need to be reviewed. Plans need to be made for the recovery of the tourism sector which include a focus on opportunities for promoting ecotourism. 68 This section provides recommendations to the RGC for ecotourism operations and developments, trends improving the enabling environment for ecotourism helped to inform the recommendations. in Cambodia taking into consideration the COVID-19 epidemic. Ensuring this can be achieved taking into In addition, the recommendations are informed by account COVID-19 will require a range of responses on: international best practice on developing ecotourism in protected areas (PAs). 1. Governance, regulatory and organizational measures Respond Now to the COVID-19 Pandemic 2. Fiscal and monetary support 3. Industry training support The ecotourism industry in Cambodia is currently 4. Tourism branding and marketing facing a significant challenge and is struggling to 5. Health, hygiene, sanitation and service delivery. survive. It has virtually no clients. It is losing much of its institutional memory through staff losses. See Table 7 and Annex 6: Fuller List of Recommended Confidence in the industry is weak and investment Strategic Actions for COVID-19 Response and opportunities are limited. In addition, the status is Recovery in the Tourism and Ecotourism Sectors changing by the day leaving the industry floundering in a state of the unknown. Recommendations for ‘building back better (BBB)’ after COVID-19 are actions that the RGC would need to do It is possible to turn this around and ensure that regardless of COVID. See Table 8. These are organized measures are put into place that would help protect into four key interventions: the industry and set it on a road to recovery on and into the future. Some of these measures overlap with 1. Establish and enforce regulations and ordinances strategic actions that would have been necessary that build partnerships regardless of COVID-19. We have reviewed the data 2. Strengthen institutional arrangements and presented in this document, along with challenges the capacity building for stakeholder industry faced before COVID-19. Table 7 and Table 8 list 3. Ecotourism destination planning, management these recommendations within their key intervention and marketing areas and labels them according to how urgent 4. Enable the private sector. they are. These recommendations are followed by a more However, four urgent actions need to be implemented detailed discussion on the range of actions needed to now to rescue the ecotourism industry and set it boost ecotourism in Cambodia and accommodate BBB towards a sustainable and successful future are: to create an enabling environment for ecotourism. E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A Immediate Action 1: Approach Used to Develop and implement a specific communication Develop Recommendations strategy during the crisis period: The recommendations proposed are a product of • MoT and MoE to collaborate on leading and discussions with government departments (Ministry developing a unified communication strategy. of Environment (MoE), Ministry of Tourism (MoT) and Ministry of Economy and Finance (MEF); tourism tour • Details to include clear information on travel operators; tourism industry experts including the bans, and to ensure government departments, PA private sector; and nongovernmental organizations officials, hotel staff and tourists are all aware of (NGOs) and development partners (DPs) working the current status. in Cambodia. Global World Bank staff working on • All updates to be communicated immediately. tourism and ecotourism contributed. An analysis of the Cambodian tourism sector, including existing 69 Immediate Action 2: • This recommendation aligns with other Create clear rules around social distancing and recommendations to MoE to invest in the branding group size: of ecotourism in Cambodia. • MoE, MoT and Ministry of Health (MoH) to Immediate Action 4: collaborate on creating the rules around social Support the creation of appropriate hygiene and distancing and group sizes. sanitation protocols for tour operators and guides: • Cap the number of people at heritage sites and • MoE, MoT, and MoH to collaborate on the creation waterfalls to maintain appropriate social of these measures. distance requirements. • Include frequent disinfecting of equipment and • Limit or prohibit food buffets for the remainder temperature checks. of 2020. • Include standards for basic packages of health Immediate Action 3: equipment, such as masks, thermometers, hand Prioritize the development of nature based, sanitizers. ecotourism or adventure related destination: • Create handwashing stations around heritage or • In particular, promote the development of popular tourism sites. wellness, spirituality, meditation and other products. They will be in greater demand after the crisis and people will be seeking more meaning in their lives. E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A 70 TABLE 7. RECOMMENDED STRATEGIC ACTIONS FOR RGC FOR COVID-19 RESPONSE AND RECOVERY IN THE ECOTOURISM SECTOR PLEASE NOTE: BOXES IN YELLOW ARE STRATEGIC ACTIONS THAT NEED IMMEDIATE ATTENTION Key intervention areas S.N Recommendations Now Within 3 months Within 15-18 months Implementing Agency 1. Governance, 1 Develop and implement a specific communication strategy during X MoT Regulatory and the crisis period. Details to include clear information on travel Organizational bans, and to ensure government departments, park officials, Measures hotel staff and tourists are all aware of the current status. All updates to be immediately communicated. 2 Create clear rules around social distancing and group size. This X MoT; MoE; MoH includes measures such as: (a) capping the number of people at heritage sites and waterfalls to maintain appropriate social distance requirements; (b) limiting or prohibiting food buffets for the remainder of 2020. 2. Destination and 3 Prioritize the development of nature based, ecotourism or X MoE Products Development adventure related destination 4 Promote development of wellness, spirituality, meditation and X MoT; MoE other products as they will be in greater demand after the crisis and people will be seeking more meaning in their lives 3. Improving Health, 5 Support the creation of appropriate hygiene and sanitation X MoT; MoE; MoH Hygiene, Sanitation protocols for tour operators and guides, including frequent and Service Delivery disinfecting of equipment, temperature checks etc. including standards for basic packages of health equipment (masks, thermometer, hand sanitizer). 6 Create handwashing stations around heritage or popular X MoE; MoT tourism sites. E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A 71 E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A 72 TABLE 8. RECOMMENDED STRATEGIC ACTIONS FOR RGC FOR IMPROVING THE ENABLING ENVIRONMENT FOR ECOTOURISM IN CAMBODIA PLEASE NOTE: BOXES IN YELLOW ARE STRATEGIC ACTIONS THAT NEED IMMEDIATE ATTENTION Key intervention areas Recommendations Key Actions Now Within 3 months Within 15-18 months Implementing Agency Strengthening 1 Develop new policies Issue a Ministerial Prakas to provide X MoE Regulatory to address ecotourism clear operational guidelines for Framework regulatory challenges developing ecotourism investment projects in Protected Areas (PAs). Supervise and evaluate X MoE ecotourism contracts. Create a step-by-step guide to help X MoE, MoT the private sector navigate the various government processes for ecotourism investment projects. Develop and make available all X MoE guidelines and documents in both Khmer and in English. 2 Implement Identify members of the Inter- X MoE strategic actions for Ministerial Working group in the operationalizing the National Ecotourism Plan (NEP) National EcoTourism to ensure appropriate levels of Policy (NEP) representation. Clarify roles and responsibilities of the X MoT, MoE Minister of the Environment, Minister of Tourism and the managers of PAs. 3 Establish a revenue Develop and implement an RMS with X MoE, MEF management system clear guidelines for implementation. (RMS) to improve the management of Provide guidelines for how a PA X MoE, MEF ecotourism revenues. spends revenue from EIP fees. Key intervention areas Recommendations Key Actions Now Within 3 months Within 15-18 months Implementing Agency Strengthening 4 Strengthen Encourage strong partnerships and X MoE, MoT Institutions and partnerships and collaboration between communities, Partnership build capacity of private ecotourism enterprises and MoE staff for more the MoE and MoT. effective oversight and management of Introduce capacity-building X MoE, MLVT ecotourism in PAs training to build specific ecotourism management skills for relevant stakeholders. Introduce training to promote the X MoE, MLVT entrepreneurial and creative skills of local people and PA authorities. Increase the availability of tourist X MoE education programs on conservation and the environment. Conduct a capacity assessment of X MoE MoE’s Department of Ecotourism (DET) to identify training needed. Build the capacity of DET-MoE and X MoE provincial staff to properly manage ecotourism with targeted training. 5 Strengthen MoE-DET Develop and implement an ecotourism X MoE as service provider services program at MoE. for the Ecotourism Services Program E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A 73 E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A 74 Key intervention areas Recommendations Key Actions Now Within 3 months Within 15-18 months Implementing Agency Ecotourism 6 Invest in ecotourism Identify three or four ecotourism X MoE Destination Planning destination planning destinations to develop. and Management and development Decide on a development vision for X MoE, CDC selected destinations and develop implementation plans to facilitate ecotourism investments to achieve the development visions. Determine current profile of foreign X MoE, CDC and domestic tourists for priority destinations and key markets for future growth. Identify infrastructures needed for X MoE these specific destinations and gaps where private sector investment would be needed. 7 MOE to take Reorganize DET-MoE to be more fit X MoE responsibility for for purpose in managing ecotourism ecotourism destination destinations. management DET-MoE to employ a private sector X MoE liaison person based in the MoE. DET-MoE to communicate closely with X MoE the private sector about their role in stronger management of ecotourism. 8 Develop a vision and Rebrand Cambodia as more than X MoE, MoT brand for ecotourism Angkor Wat. Ecotourism should be in the Cardamoms. front and center of the new image, as well as the Cambodian people and their indomitable spirit. Develop and publicize a shared vision X MoE, MoT among government for ecotourism in the Cardamoms. Key intervention areas Recommendations Key Actions Now Within 3 months Within 15-18 months Implementing Agency Develop a prospectus of ecotourism X MoE, MoT products and market segments for the Cardamoms. Develop appropriate consumer X MoE, MoT marketing to support buy-in and uptake of the brand. Hire an experienced public relations X MoE (PR) company with proven track record to roll out a Chinese-language marketing campaign targeting China, Taiwan, Singapore, Hong Kong and Macau. Host annual trade marketing for X MoE, MoT linking domestic and international tourism/ ecotourism operations. Enabling Private 9 Build professional MoE holds frequent and consistent X MoE Sector capacity of informational meetings communities within community-based ecotourism (CBET) communities. Assessment of available training and X MoE, MLVT capacity development opportunities in Cambodia. Conduct a survey of the private sector X MoE working in ecotourism areas to determine the needed skills for the next generation of ecotourism employees. Develop a comprehensive program X MoE, MoT of capacity building for ecotourism services including aligning the program with a recognized global accreditation tourism curriculum. E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A 75 E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A 76 Key intervention areas Recommendations Key Actions Now Within 3 months Within 15-18 months Implementing Agency 10 Build capacity of Identify as part of the destination X MoE communities to management planning complementary engage in-, and value chains and livelihoods that could provide investments be developed as part of the overall for ecotourism-related ecotourism destination package. values chains Develop specific investment plans X MoE for complementary value chains that identify needed goods and infrastructure. Assess and build capacities X MoE of communities to engage in complementary value chains and livelihoods including for entering into partnerships with private sector. Develop guidelines for community- X MoE private sector partnerships including contract templates, and benefit sharing arrangements. 11 Invest in priority Invest in urgently needed hard X MoE, MRD infrastructure infrastructure such as roads, visitor for ecotourism centers, solid waste management development facilities etc. Invest in urgently needed non- X MoE infrastructure investments such as management frameworks to provide guidance on sustainable ecotourism development initiatives. 12 Organize ecotourism Develop protocol for the ecotourism X MoE, MoT industry forum to industry forum in partnership ensure information with MoT. sharing and feedback Develop financing strategy for X MoE, MoT the forum and include budget for organizing forum in DET-MoE annual budget. Strengthen Regulatory Frameworks to make sure that these EIPs do not result in environmental damage. The issue of a shortage of regulations must be addressed urgently, such as guidelines for ecotourism A Royal Decree would supplement the Protected development in PA. There is a serious lack of Areas Law by expanding on the broad principles and regulation and this contributes to poorly designed high-level requirements for how EIPs in PAs should be initiatives that result in overuse and over-exploitation developed. It would benefit the development of EIPs of ecotourism sites. In addition, the design of for ecotourism and would also benefit non-timber infrastructure or facilities are often inappropriate, and forest product value chains along with other types of there is a lack of environmental management plans natural-resource related enterprises. and risk and crisis management systems. The dearth A Ministerial Prakas on Ecotourism Investment of regulations also reduces investor confidence in the Projects (EIPs) sector and creates some level of job insecurity in the A Ministerial Prakas is needed to provide clear sector. Global best practice on developing ecotourism operational guidelines for how to develop EIPs in in PAs emphasizes strong regulation as a first order PAs. It should describe the processes for planning and necessary activity.121 commercial ecotourism services, developing information leaflets and brochures, soliciting and RECOMMENDATION 1 evaluating proposals, and awarding new ecotourism Develop new policies to address ecotourism EIP contracts. The guidelines should also provide regulatory challenges references to the relevant laws, regulations, executive orders, and policies from other sources. Strategic Actions: • Issue a Ministerial Prakas to provide clear To ensure that the private sector has the confidence operational guidelines for how to develop to invest, standardization and transparency of the ecotourism investment projects (EIPs) in PAs ecotourism EIP process is needed. Therefore, it is recommended that the Prakas also includes: • Create a step-by-step guide to help the private sector navigate the various government processes • Standard EIP contract language for all of the types of contracts mentioned in the law • Develop and make available all guidelines and documents in both Khmer and in English • Standard EIP contracts for non-facility-based activities (permits) • Evaluate existing ecotourism contracts and revise E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A to align with guidelines. • Standard evaluation criteria and procedures Two types of legal instruments are needed to • Clear guidance for private sector developing strengthen the policy and regulatory framework for ecotourism in PAs in collaboration with ecotourism; (a) a high-level Decree that legislates for communities EIPs in PAs, and (b) a Ministerial Prakas that turns the • Procedures for developing prospectus and tender legislation into operational guidance. documents, such as: (a) standard practices A Royal Decree on EIPs in Protected Areas for financial feasibility analysis and proforma Currently, the Protected Areas Law does not provide analysis; (b) standard practices for any guidance or clarity on developing EIPs in PAs. This environmental analysis; and (c) standard practices is a key gap as EIPs in PAs need special considerations for market analysis. 121 For best practice examples, see Spencley et al (2017) on guidelines for developing tourism in protected areas. 77 TABLE 9. PROPOSED MODELS FOR ECOTOURISM DEVELOPMENT IN CAMBODIA’S PAS Community Enterprise • This model puts the local community at the center of the initiative through ownership and involvement in the venture’s operation and management. • The community is the main beneficiary of the initiative. Examples of community enterprise are prevalent in Cambodia, frequently as a legacy after facilitating agents withdraw from ecotourism ventures set up by NGOs Private Enterprise • Private ownership of lodges, luxury tented camps or resorts in Protected Areas is also a common model for ecotourism in Cambodia, which is usually established through an EIP system. • This model offers several forms of compensation to the government, such as environmental fund, social development fund, reversion clauses upon the buildings or improvements made or the payment of a fee. Community-Private • Private sector partners can provide capital, business and marketing skills and a client base Partnership to complement community assets including land, labor and local knowledge. Clear contractual arrangements and taking time to develop a shared understanding of the type and level of service expected will help to ensure the relationship is satisfactory for both parties. Community-Conservation • This arrangement aims to link biodiversity conservation in Protected Areas with the wellbeing of the Partnership community who are dependent on the Protected Area’s resources. These partnerships can be based on different forms of co-management and benefit sharing mechanisms. • In practice, community and conservation partnerships often lack communication, collaboration and coordination which can easily lead to a conflict of interest and mismanagement of land and natural resources within boundaries of PAs. A rigorous and practical model for future partnerships to follow is needed urgently. Private-Conservation • This is a public-private partnership model. The public sector manages the PAs under the Partnership jurisdiction of the MoE. Private sector actors operate the tourism initiatives, including ecotourism enterprises or private investors in EIPs. • The partnership framework for this model must balance public interest, conservation and the protection of local interest and market interest. The Prakas also needs to provide clarification on the the EIP contract. Overall communication on how best models for ecotourism including guidance on ecotourism in PAs is proposed to be rolled-out each model. See Table 9 for descriptions of the five is needed. This includes details on the types of proposed models. ecotourism models that will be promoted; the roles and responsibilities of the government including the Guidelines for ecotourism development need to be specific roles of the MoE; and the responsibilities of disseminated to the private sector, and communication potential investors in EIPs. materials developed to ensure that processes are E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A clear. A large number of applications for EIPs are It is also recommended that the Prakas be developed currently “in process” (over 90) but without much as a joint MoE and MoT (Prakas as this would leverage progress. This suggests that the private sector may the expertise of MoT and help secure their partnership need help and support with some aspects of the to support the ecotourism development in PAs. The development process. 122 It is recommended that MoE guidelines should also be made available both in translates the Prakas’ guidelines into a step-by-step Khmer and in English. guide to help the private sector navigate the various government processes. A key consideration is the evaluation of existing contracts as this will likely need to be revised to This guide would be designed to facilitate the include operating standards, facilities development of infrastructure and help the EIP management, EIP investment management, and investor meet the deadlines and goals laid out in financial management. 122 Personal communication with Director of Department of Ecotourism in the MoE on February 05, 2020. 78 staffing arrangements for fulfilling these obligations. RECOMMENDATION 2 Identifying the membership of the group by title will Implement strategic actions for operationalizing the ensure appropriate levels of representation. National EcoTourism Policy (NEP) Strategic Action 3: Clarify roles and responsibilities Strategic Actions: regarding the development of ecotourism activities • Revise the NEP to reflect diversification of The Protected Area Law and the Law on Concessions ecotourism products give the Minister of the Environment responsibilities related to approving ecotourism activities within • Identify members of the Inter-Ministerial Working PAs. This authority should be clearly stated within group in the NEP to ensure appropriate levels of the Ecotourism Policy. Furthermore, the roles and representation responsibilities of the Minister of the Environment, the Minister of Tourism and the managers of PAs within • Clarify roles and responsibilities of the Minister this policy need to be clarified and the opportunities of the Environment, Minister of Tourism and the for cooperation highlighted. managers of PAs in the Inter-Ministerial Working Group Working Group. More detailed recommended actions for strengthening the legal and regulatory framework as it relates to the Operationalizing the NEP, will help to ensure alignment Protected Areas Law, Law on Concessions, Land Law between the proposed Prakas and the NEP. The and NEP are detailed in Annex 5. Recommendations following three strategic actions are needed to for improving the legal and regulatory framework operationalize the NEP. for ecotourism. Strategic Action 1: Revise the NEP to reflect RECOMMENDATION 3 diversification of ecotourism products Currently, the NEP primarily focuses on the Establish a revenue management system (RMS) to development of resorts. However, many other improve management of ecotourism revenues opportunities exist for community-based ecotourism including homestays, guiding, cooking demonstrations, Strategic Actions: and tours. These opportunities should be explored • Develop and implement an RMS with clear and included in the policy. Expanding the objectives to guidelines for implementation include these types of activities would be a simple way to promote the involvement of local communities. • Provide guidelines for how a PA spends revenue from EIP fees. E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A Strategic Action 2: Identify members of the inter- Ministerial Working Group in the NEP An RMS needs to be established to improve the The Inter-Ministerial Working Group has the management of revenues associated with ecotourism. responsibility to review, evaluate and decide on These revenues come from EIP fees, entry fees for PAs, ecotourism projects implemented by communities or parking fees, and other visitor services. A portion of national and international organizations. It monitors the revenues from ecotourism should be reinvested the operations of ecotourism development projects. in PAs to support the overall management of PAs, and It develops regulations to manage ecotourism in a the publicly owned ecotourism infrastructure there. sustainable manner, and it deals with any issues Without revenue retention for reinvestment in a PA, occurring in ecotourism resorts. PA managers have no incentive to develop income streams such as EIPs. Therefore, a well-managed RMS However, the names of the titles for members of the that promotes transparency and accountability in Inter-Ministerial Working Group are not identified the collection and management of fees and helps to in the policy. The group also holds operational maximize revenue from ecotourism is needed. responsibilities, yet the policy does not specify the 79 An RMS will help to standardize: under the NEP. Existing ecotourism initiatives have established multi-stakeholder institutions set up • ecotourism user fees, entry and parking fees in PAs which have been instrumental in producing • procedures for collecting fees including local-level environmental management plans. These monitoring and reporting plans hold the key to more sustainable ecotourism • accountability and transparency measures development in PAs. Proper institutional backing and for fees coordination between stakeholders can facilitate the • procedures for use of ecotourism fees (including creation of local and community-level regulations fees from EIPs) for PAs management and and ordinances to ensure the distribution of benefits management of publicly owned ecotourism from ecotourism to Protected Area management and infrastructure in PAs. community development. The RMS should build on existing legislation that RECOMMENDATION 4 guides how tourism fees should be used.123 The RMS should be structured to make sure that PAs generating Strengthen partnerships and build capacity of MoE the most revenue receive proportional reinvestment. staff for more effective oversight and management of The RMS will also enable tracking of revenue flows ecotourism in PAs and have the ability to project revenue flows. As part of the RMS the roles and responsibilities of MoE and Strategic Actions: Protected Area Authority in managing the ecotourism • Encourage strong partnerships and collaboration revenue system will be detailed. The guidelines for between communities, private ecotourism the revenue management system will be included in enterprises and the MoE and MoT the new Prakas and will stipulate how a PA may spend revenue from EIP fees. • Introduce capacity-building training to build specific ecotourism management skills for It is recommended that the Department of Ecotourism relevant stakeholders of MoE (DET-MoE) manage the RMS. However, close collaboration is needed between the MEF, MoT, and • Introduce training to promote the the PA Authorities to develop the RMS, as it is likely entrepreneurial and creative skills of local people that a joint MEF, MoE, MoT Prakas may be needed for and PA authorities the RMS. MoE’s financial unit will also be tasked to support the RMS on invoicing, receipt and banking • Increase the availability of tourist of funds. education programs on conservation and the environment E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A Strengthen Institutions and Partnerships • Conduct a capacity assessment of MoE’s Effective institutions are critical to the development of Department of Ecotourism to identify the ecotourism sector. As much as possible, existing training needed institutions should be strengthened or built upon • Build the capacity of MoE and provincial staff to instead of creating new ones. Two key institutions properly manage ecotourism with for strengthening are the DET-MoE, and the inter- targeted training. ministerial working group for ecotourism established 123 MEF and MoT Joint Prakas No. 998 SHV.PrK dated December 29, 2012 on ‘Provision of Rewards’ provides guidance on how tourism revenues are to be used by the central and provincial governments. This Prakas does not provide details about undertaking tourism in PAs, and accordingly how tourism revenues should be used for PA management. This underscores the need for an RMS that will provide guidance on the use of ecotourism fees for PA management. 80 Partnerships Capacity Building Strong partnerships positively contribute to Capacity-building training aimed at building ecotourism and community-based ecotourism specific ecotourism management skills for relevant initiatives and achieve their social and environmental stakeholders will support the effectiveness of these objectives. Cooperation between communities, partnerships. In addition, training to promote the private ecotourism enterprises (see Box 3) as well entrepreneurial and creative skills of local people and as authorities in the PA and ecotourism sector Protected Area authorities will assist them to meet the (predominantly the MoE and the MoT) needs to be diversifying needs of the ecotourism sector. encouraged. This would reduce conflict and increase collaboration between them. It would also encourage Increasing the availability of programs to educate the sharing of knowledge and build political will. tourists on conservation and environmentally and socially responsible action would help to address the Partnerships can promote collaboration between non-institutional aspects of overuse, such as improper different stakeholders by creating plans and disposal of waste. establishing organizations dedicated to ecotourism development. Effective partnerships are also critical Capacity of MoE and provincial staff to properly to the management of PAs. These partnerships will manage ecotourism also needs to be developed help to overcome challenges facing ecotourism in with targeted training. An assessment of the staffing Cambodia’s PAs including issues of overuse and over- needs for managing the ecotourism program should exploitation, low low-quality products and services, include a program Manager, project development team lack of access to market, and limited coordination. The members, finance team members, operations and arrangements for partnerships should be included in planning team members, facility management team the proposed Prakas (see Recommendation 1). members, and legal advisor(s). BOX 3. PROPOSED MODELS OF COMMUNITY AND PRIVATE SECTOR PARTNERSHIPS Types of Private-Community Partnerships However, the contractual relationship is with the CBET community, which makes a recognized E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A Models of partnerships between private enterprises contribution to the enterprise in return for a and local communities can include: share of the financial and other benefits. • A private lodge or resort is built in a CBET site There is often a marketing partnership between a but is operated privately. The private operator tour operator and CBET operator. Tour operators agrees to voluntarily share a mutually agreed are considered essential because of their market upon portion of their revenue with the expertise and experience. They act as facilitators, CBET community marketing intermediaries, and product development advisors for CBET development. The poor marketing • A lodge or resort is run as a joint venture and capability of local entrepreneurs, made worse partnership between a private investor and by the remoteness and limited resources of the the local community. The private investor entrepreneurship, challenges the CBET to market builds and operates the lodge or resort. their business independently. 81 These staff will need to have the following are responsible for various permits needed for fundamental competencies: ecotourism development. • An understanding of the legal and regulatory By bringing ecotourism services together under framework for ecotourism a single office, bureaucracy is reduced and there • Monitoring and evaluation skills are less delays in the process of permits and the • The ability to collect data and analyze it approval process required at the various government • The ability to run customer service levels. It will also reduce the information barriers • Knowledge of how to run a business that private sector face when developing ecotourism, • Negotiation and collaboration skills will standardize fees, will promote transparency • Asset (facility) management. for accessing permits and licenses associated with ecotourism, and will strengthen the management by A key recommended first step is to conduct of a the MoE for ecotourism development in Cambodia. capacity assessment of DET-MoT against these Box 4 provides more information on the proposed ESP. fundamental competencies. It will be necessary for MoE to work with MLVT in the design and Strengthen Ecotourism Destination implementation of the institutional capacity building. Planning, Management and Marketing RECOMMENDATION 5 Planning ecotourism destinations is a necessary first step for organizing ecotourism development and Strengthen DET-MoE as service provider for the improving the quality of services that are provided for Ecotourism Services Program (ESP) ecotourism in Protected Areas. Strategic Action: Destination planning will help to ensure: • Develop and implement an Ecotourism Services Program (ESP) at MoE. • inclusive growth by better development and protection of key assets, and through improved As a service provider for the Ecotourism Services use and redistribution of tourism revenues Program (ESP) MoE will help to make the EIP investing process easier and seamless for investors • ecotourism development aligns with the goals of in procedures such as applying for permits. This will the PA where ecotourism is being developed provide a more enabling environment for ecotourism. Helping investors in EIPs navigate some of the more • a clear vision for how to implement ecotourism difficult government processes can speed up the is articulated E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A development time of EIP infrastructure projects. • an action plan for implementing this vision The main objective of ESP would be to deliver is developed services required by the private sector for developing ecotourism operations in PAs in Cambodia. The ESP • the necessary infrastructure for ecotourism will be designed to make available under one roof services is identified ecotourism investment project (EIP) services that are effective, efficient, transparent, accountable, • connectivity infrastructure is in place that would timely, reliable, and inexpensive. It will be important help to develop innovative multi-destination therefore that MoE works closely with the Ministry itineraries that integrate a variety of visitor of Interior (MoI), MRD, Ministry of Land Management experiences across a region or zone, based on a Urban Planning and Construction (MLMUPC), and variety of themes and primary travel motivations. provincial governments, and these arms of government (Connecting destinations with each other and with 82 BOX 4. AN ECOTOURISM SERVICES PROGRAM IN CAMBODIA Ecotourism Services Program are operating in violation of the terms of their permits are appropriately dealt. Cancellation of The role, services and management of the ESP. EIPs should be a last resort measure. 1. Provide information on ecotourism development It is also suggested that the first iteration of the in PAs including: ESP is managed centrally by MoE. However, after that the ESP should be managed by the DET-MoE. • The geographic areas prioritized for ecotourism development Eventually, there need to be ESPs sitting • Processes and fees for securing EIPs at provincial level too. To support this • Processes and fees for permits and licenses decentralization process, capacity development • Incentives provided by the government for and training will need to be provided to DET-MoE potential investors into EIPs staff to manage the ESPs and the provincial staff • Environmental and other requirements on the ESPs. • Communities where there is strong potential for partnerships. 4. Government department collaboration 2. Support investors on the overall process of ESPs will require the DET-MoE to participate setting up EIPs closely with other Ministries that provide services relevant to setting up ecotourism This includes obtaining the required permits, enterprises. These include the: especially where other Ministries are involved in granting permits. Potential investors will • Ministry of Interior provide the required information to ESP, which • Ministry of Tourism will facilitate the liaising with other ministries. • Ministry of Rural Development Reducing the overall time for accessing permits • Ministry of Land Management, Urban will be a key feature of the ESP. Planning, and Construction. 3. Management of ecotourism investment DET-MoE will also need to work closely with projects (EIPs) local government offices. It is recommended that memorandums of understanding (MoUs) The ESP will oversee the management of are established with these Ministries and local EIPs, including ensuring that these are being government offices in order to ensure a commitment E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A implemented according to their agreed terms of to service provision. reference. They will also ensure that EIPs that the main urban centers like Phnom Penh, Koh • spatial planning for ecotourism development Konh and Siem Reap will act as gateways to other is used providing well-defined areas for private tourist destinations to enhance connectivity) sector investors, and community groups. • high quality ecotourism products are identified An example of a destination management plan for and developed tourism development in the Lower Mustang Valley of Nepal is provided in Figure 22. The plan is guiding the Nepal government on tourism investments. 83 FIGURE 22. EXAMPLE OF TOURISM DESTINATION PLAN FROM LOWER MUSTANG VALLEY NEPAL Source: METCON Consultants 2019. Development Vision and Investment Plans for Annapurna Conservation Area and consultation with industry experts. MoE RECOMMENDATION 6 will need to work closely with the Council for Invest in ecotourism destination planning Development of Cambodia (CDC) and MoT on the and development spatial planning of the destinations. Strategic Actions: 2. Establish the current profile of foreign and • Identify three or four ecotourism destinations domestic tourists in the priority destinations to develop (such as market of origin, destination preferences, length of stay, and expenditure patterns). The • Decide on a development vision for selected objective of the market analysis is to achieve a destinations and develop implementation plans to strong understanding of different constituents facilitate ecotourism investments to achieve the through research and analysis prior to engaging in development visions marketing strategies.124 • Determine current profile of foreign and domestic 3. Identify the key target markets for future growth. E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A tourists for priority destinations and key markets for future growth 4. Identify infrastructures needed for specific destinations, where there are skills gaps and • Identify infrastructures needed for these specific where private sector investments would be useful. destinations and gaps where private sector investment would be needed. 5. Determine the development options and a preferred development vision for the It is recommended that MoE invests in developing selected destinations. three or four ecotourism destinations. The key steps for destination planning: 6. Develop a visitor management system, considering issues like carrying capacity of the landscape, 1. Identify potential destinations using multiple allowable activities, and standards of quality. criteria important for ecotourism development Best practice guidance on developing a robust 124 Leung et al. 2018:57 84 visitor management system in PAs is provided by landscape (CMTS).126 The analysis included stakeholder International Union for the Conservation of consultation with government, development partners Nature (IUCN).125 and the private sector to discuss the priority ecotourism areas. A geospatial multiple criteria 7. Develop detailed implementation plans to decision approach (MCDA) was applied to bring facilitate CBET, private sector sustainable together relevant data and information (criteria) for and qualitative investments, public private identifying the most suitable areas in the CMTS for partnerships, infrastructure investment, ecotourism development. See Box 5. environmental protection and governance to achieve this preferred development vision. The work identified three potential ecotourism destinations (See Figure 23): The World Bank’s Technical Assistance (TA) supported the RGC to undertake an ecotourism analysis 1. Koh Kong province to identify potential ecotourism destinations in 2. Siem Reap province (Kulen-Tonle Sap) Cambodia’s Cardamom Mountains and Tonle Sap 3. Phnom Aural Protected Area 125 See Leung et al. 2018 126 Baromey, Neth. 2020 [Draft] BOX 5. MAPPING AND PRIORITIZING ECOTOURISM DESTINATIONS IN CAMBODIA’S CARDAMOM MOUNTAIN-TONLE SAP LANDSCAPE Mapping and Prioritizing Sites for 2. Attractiveness (scenic value, aesthetic value) 3. Land use and tenure (forest cover; Ecotourism Development state ownership) Process 4. Sensitivity (ecological and political) of location The four main steps used for mapping and 5. Access to services prioritizing ecotourism development included: (electricity, telecommunications) 6. Existing ecotourism sites 1. Identification of criteria and clusters for 7. Socioeconomic (community access and poverty) evaluating the suitability of sites for ecotourism 8. Market demand (seasonality, government priority development and investment. and existing visitors) 2. Collection of spatial data and developing 9. Biodiversity (wildlife and species diversity) E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A geographic information system (GIS) data layers. 10. Diversity of ecotourism offerings 3. Multiple criteria decision analysis (MCDA) in GIS focusing on standardization, weighting using Results Analytic Hierarchy Process (AHP) and summary The analysis developed a map showing the most analysis of all critical criteria. suitable sites for potential ecotourism development 4. Reviewing spatial analysis using sensitivity in the CMTS. See: Figure 24. The green areas are the analysis and stakeholder consultations. most suitable. Criteria These maps were then verified through consultations Ten main criteria were used for analysis: with tourism industry experts and the ecotourism private sector. 1. Accessibility (elevation, slope, distance from roads) Neth Baromey 85 FIGURE 23. MAPPING PRIORITY AREAS FOR ECOTOURISM DEVELOPMENT E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A 86 Source: Baromey, Neth. 2020 [Draft] E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A 87 FIGURE 24. PROPOSED ECOTOURISM DESTINATIONS IN THE CMTS LANDSCAPE Source: Baromey, Neth. 2020 [Draft] E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A 88 RECOMMENDATION 7 RECOMMENDATION 8 MOE to take responsibility for ecotourism Develop a vision and brand for ecotourism in the destination management Cardamom Mountains Strategic Actions: Strategic Actions: • Reorganize DET-MoE to be better equipped to • Develop and publicize a shared vision among manage ecotourism destinations government for ecotourism in the Cardamoms • DET-MoE to employ a private sector liaison person • Rebrand Cambodia as more than Angkor Wat. based in the MoE Ecotourism should be front and center of the new brand, as well as the Cambodian people and their • DET-MoE to communicate closely with the private strong and resilient spirit sector about their role in stronger management of ecotourism. • Develop a prospectus of ecotourism products and market segments for the Cardamoms The MoE will have ultimate responsibility on how ecotourism is developed and managed in the PAs. • Develop appropriate consumer marketing to The process of the destination planning, and revenue support buy-in and uptake of the brand management described earlier will help MoE put in place the measures needed to effectively manage the • Hire an experienced PR company with proven ecotourism destinations. track record to roll out a Chinese-language marketing campaign targeting China, Taiwan, The new regulations for ecotourism also recommended Singapore, Hong Kong and Macau earlier will help to clarify many of the destination management details. In addition, developing the skills • Host annual trade marketing for linking and capacity of MoE staff will enhance their ability to domestic and international tourism and effectively manage destinations. ecotourism operations. There are a few destination management companies A vision is critical for any tourism destination, as it already operating in Cambodia and some of the helps to define the scope of what the destination can destination management functions could be offer and build brand promise. Having a brand promise outsourced to one of these private companies. of high-quality ecotourism destinations and services However, the overall responsibility of the destination in Cambodia will allow travelers to build certain expectations for ecotourism that can be leveraged E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A should remain with MoE. with good marketing. The tourism brand for Cambodia Nonetheless, working closely with the private sector on is Angkor Wat. It is what the country is known for. destination management is crucial. Developing ecotourism as a key subsector will require developing a different but also complementary brand MoE should consider having a private sector liaison to Angkor Wat. in MoE who can provide dedicated time to managing relationships with the private sector. MoE will need to Internationally, examples of successful branding that inform the private sector about this position, through promote high-quality but low-intensive experiences a e-newsletter and communication through CAM DMC, already exist. A good example is the Kruger National Cambodia Tourism Federation (CTF) and Cambodia Park in South Africa. See Box 6. Association of Travel Agents (CATA). 89 BOX 6. BRAND IDENTITY OF KRUGER NATIONAL PARK The Kruger National Park (KNP) in South Africa is internationally known as a wildlife tourism destination. Its brand contains the text Siyabona Africa and includes images of iconic African wildlife like lion, rhinoceros, leopard, and elephant. ‘Escape’ and ‘nostalgia’ are what motivates visitors to go there, and the park authority (SANParks) have designed an experience around these two concepts. The idea of conservation is also a key component of the brand and as such KNP has been developed as a low-intensive but high-value experience. Although SANPark expects visitors to KNP to double in the next 11 years, it has no plans to double roads or accommodation. This is in keeping with the overall brand identity of the Park. Source: Brett. 2018127 and http://www.krugerpark.co.za/ While there are several existing ecotourism Enabling Private Sector development initiatives taking place across the country, including in the Cardamoms, there is no For the sustainable development of ecotourism to cohesive vision to unite them all. Yet, private sector happen, it is critical that the private sector is able investors need to understand how their potential to grow tourism and invest in the sector. The private projects fit into a national level vision for ecotourism. sector is the most crucial partner a government has A vision for ecotourism in the Cardamom mountains to develop tourism. Its role in tourism is to develop and developing a tourism brand for the Cardamoms and operate tourism facilities and services for tourists. needs to be developed. Consultations with private sector tourism operators and an assessment of regional tourism experiences DET-MoE is expected to lead the vision and branding identified the following recommendations to enable and will need to work closely with MoT and Ministry of private sector participation in the development Commerce (MoC), to ensure that this is successful. of ecotourism. Importance of Market Research RECOMMENDATION 9 E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A Strong market research will be needed to develop Build professional capacity of communities as the ecotourism vision and brand, and for destination ecotourism service providers planning. Reliable market data about target markets is not easily available to ecotourism investors (or the Strategic Actions: general tourism industry). Investing in good market • MoE holds frequent and consistent informational research will help investors make informed decisions meetings within CBET communities about the development and placement of new ecotourism products and services. There may also be • These briefings should include information about: an opportunity to collaborate regionally, within the » the various investment models Mekong countries and ASEAN countries. This will build » the benefits of welcoming a private an improved understanding of the requirements of sector investor ecotourists wanting to visit Southeast Asia. » the disadvantages and impacts that increased tourism brings 90 126 Brett, Michael. 2018 • Assessment of available training and capacity 2. Will benefit both the communities and development opportunities in Cambodia the industry. • Conduct a survey of the private sector working in RECOMMENDATION 10 ecotourism areas to determine the needed skills for the next generation of ecotourism employees Build capacity of communities to engage in-, and provide investments for ecotourism-related • Develop an internationally accredited values chains comprehensive program of capacity building and skills training for ecotourism services. These ecotourism-related value chains are likely to include agriculture/ food and beverage for A major barrier to developing products and services private ecotourism operations, souvenirs and high within CBET areas is the lack of preparedness of the value premium non-timber forest products, local host communities. It is common for communities to transportation, and gardening/ landscape services. lack understanding and knowledge about potential partnership models. It is also common for them to Strategic Actions: fear these partnerships thinking they will lose rights • Identify as part of the destination management or lands to incoming investors. Communities need to planning complementary value chains and be better informed equipping them to make improved livelihoods that could be developed as part of the decisions. In turn, private sector confidence will overall ecotourism destination package increase if they know communities have been briefed. • Develop specific investment plans for Staff capacity, a lack of training and retaining staff complementary value chains that identify needed is a challenge for private sector operators. However, goods and infrastructure developing the professional skills of people in local communities to provide ecotourism services solves • Assess and build capacities of communities these issues and expands job opportunities at the to engage in complementary value chains same time. and livelihoods including for entering into partnerships with private sector Currently, there is a lack of an organized curriculum of training opportunities available to meet the needs • Develop guidelines for community-private sector of the industry and facilitate career progression for partnerships including contract templates, and employees. This a is priority area that needs urgent benefit sharing arrangements. investment and organization by MoE and MoT. First, E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A a stock take is needed of the training and capacity RECOMMENDATION 11 building opportunities that are currently available. In addition, the private sector should be surveyed to Invest in priority infrastructure for identify the skills needed in the future for ecotourism ecotourism development employees. These assessments will provide the Strategic Actions: information needed to develop a skills development • Invest in urgently needed hard infrastructure such program with a curriculum that: as roads, visitor centers, solid waste management 1. Aligns with a recognized global accreditation facilities etc. tourism curriculum that can enable employees • Invest in urgently needed non-infrastructure to receive a certified qualification. This will be an investments such as management frameworks to investment in human capital in Cambodia. It will provide guidance on sustainable ecotourism provide ecotourism employees with more skills, development initiatives. make them more competitive, provide them with higher income earning potential, and will create incentives for labor to stay in the sector. 91 Investments for ecotourism development should be 2. Moderate: Investments that are essential facilities identified during destination planning, but there are that contribute to minimize risk to humans and a set of no-regret investments that could already be the natural environment. considered for ecotourism development. Investments are recommended to be designed in a way that 3. Necessary: Site specific needs or investments promote environmental outcomes and inclusivity. already partially in place as a legacy of previous Infrastructure should be designed to promote energy tourism activities. and water efficiency, and where possible green construction materials used. Management of infrastructure, operation and maintenance procedures and budget should also be Investments are included in Table 10 and are thought through prior to developing infrastructure. organized in three categories: Community-management of infrastructure such as washrooms could be considered as a means of 1. Urgent: Facilities or regulations that are critical building local ownership and equity. to ensuring a positive experience in the Protected Area with minimal or no risk to visitors or the It is expected that MoE will partner with natural environment. Ministry of Rural Development (MRD) to implement needed infrastructures. TABLE 10. PRIORITY INVESTMENTS IN INFRASTRUCTURE AND NON-INFRASTRUCTURE TO ENABLE ECOTOURISM DEVELOPMENT Priority Investment in Hard Infrastructure Urgent Suitable access roads and Existing access roads are poorly maintained and may be inaccessible in the rainy boat docks season or force the use of off-road vehicles which is damaging to the natural environment. To minimize risks to visitors and nature, roads and boat docks should be built and maintained. Visitor or information Visitor or information centers educate and motivate to participate in conservation centers as well as to enjoy the planned activities. Information will help visitors to safely enjoy the site and will be specific to each location. Interpretive paths, signage Paths are very important in order to facilitate movement within the area while and circuits protecting natural resources and providing the ecotourist with an educational and exciting experience. Pay-toll facilities at the Where visitor numbers allow, facilities should be constructed to collect pay per entrance use fee as well as monitoring visitor numbers. Solid waste management Solid waste management should be based on the principles of reducing waste facilities production, reusing where feasible, and recycling as much as possible. This will require capacity building training for staff and local communities as well as the E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A construction of appropriate facilities. Clean water supply facilities Construction of basic water infrastructure such as wells, tub/pump wells, water storage tanks with filters, etc. for local communities and for visitors is essential. Nature-based lodging and Options for accommodation should be considered to offer a range of appropriate toilet facilities choices. These may include on and off-site lodgings, homestay or eco-lodge. Accommodation must provide appropriate sanitary facilities and minimize impact on the natural environment. Moderate Construction of sewage At least a small-scale sewage system (e.g. French drainage) should be built in system order to accommodate wastewater discharge from both local households and tourist facilities (i.e. restaurant or campsite) to avoid pollution of surface and underground water. Energy efficiency facilities Energy options such as solar and biofuel should be adopted where possible. and systems Artificial lighting should be minimized to avoid disturbance to wildlife. Needed Site specific: e.g. parking, Amenities for enhancing ecotourism activities and experiences, conservation and wildlife viewing facilities that prevent risks to both human and natural areas can be considered. This may include education and recreation facilities. 92 Priority Investments in Non-Infrastructure Urgent Improve management frameworks for Of utmost importance is the development of management sustainable PA management frameworks that provide guidance for sustainable ecotourism development initiatives. They include, but are not limited to: • Protected Area Land registration, boundary demarcation and zoning • Management plan (strategic and action plans included) • Necessary guidelines • Monitoring and evaluation tools • Ecotourism handbook for Protected Areas. Capacity building for relevant Moderate stakeholders (Ministry of Environment Capacity may include: officers and Protect Area management, rangers, ecotourism investors in EIPs, • PA and CPA management community-based initiative facilitating • relevant legal, policy and regulatory frameworks NGOs, management committees, • hospitality skills trainings communities • ecotourism entrepreneurship • environmental management • green standardization and eco-certification • language and communication skills. Needed PA ecotourism knowledge The sector would benefit from the establishment of an accessible management platform knowledge management platform to enable policymakers, practitioners, researchers, private sector, civil society and communities, to access and retrieve obligatory and applicable rules, regulations, and guidelines. This could include a website to serve as the ‘go-to’ resource for all things related to sustainable and socially responsible ecotourism globally, regionally or in Cambodia. government officials regarding investment needs. The RECOMMENDATION 12 Government can also share information related to the Organize an ecotourism industry forum to ensure laws, regulations, guidelines and procedures governing information sharing and feedback those opportunities. A regular forum to collect feedback from the private sector will ensure concerns Strategic Actions: are heard and addressed. • Set up an ecotourism industry forum There are currently three major private sector groups • Use the forum: or associations that actively meet in Cambodia: » to showcase investment opportunities in PAs Cambodia Destination Management Company (CAM E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A » for the private sector to advise on investment DMC), Cambodia Association of Travel Agents (CATA), needs and Cambodia Tourism Federation (CTF). In addition » to share laws, policies and guidelines on to a representative from the hotel association and the investment opportunities guide association, a representative from each group should be invited to join the forum. This exchange • Ensure the forum meets regularly will promote a collaborative relationship between the public and private sector. • Designate one person from the MoE to facilitate the public and private As the MoT undertakes an annual tourism forum, it sector cooperation. would be strategic to associate the ecotourism forum with this. One suggestion is to add an extra half-day An Ecotourism Industry Forum allows the government or one day to the forum to focus on ecotourism. The to showcase investment opportunities available in designated private sector liaison at DET-MoE can help Protected Areas and for the private sector to advise to facilitate this cooperation. 93 REFERENCES ATTA (Adventure Travel Trade Association). 2013. Adventure Tourism Study 2013. George Washington University. http://files.adventuretravel.biz/docs/research/adventure-tourism-market-study-2013-web.pdf. Bannikin Travel and Tourism. 2019. 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Spenceley, A., Snyman, S. & Eagles, P. 2017. “Guidelines for tourism partnerships and concessions for protected areas: Generating sustainable revenues for conservation and development.” Report to the Secretariat of the Convention on Biological Diversity and IUCN. E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A Trivett, Vincent and Skift staff. 2013. Rise of the Chinese Independent Traveler. Skift Report #1, 2013. https://skift.com/wp-content/uploads/2013/09/skift-chinese-traveler.pdf Walter, Pierre, and Vicheth Sen. 2018. “A geography of ecotourism in Cambodia: regions, patterns, and potentials”. Asia Pacific Journal of Tourism Research, 23(3): 297-311. WEF (World Economic Forum). 2015. The Travel & Tourism Competitiveness Report 2015 - Growth through Shocks. Geneva: World Economic Forum. http://www3.weforum.org/docs/TT15/WEF_Global_Travel&Tourism_Report_2015.pdf WEF (World Economic Forum). 2016. The Global Competitiveness Report 2015-2016 - Highlights. Geneva: World Economic Forum. https://www.formatresearch.com/img/file/GCR_Flyer_2015-16.pdf. 95 REFERENCES WEF (World Economic Forum). 2018. The Global Competitiveness Report 2017-2018. Geneva: World Economic Forum. http://www3.weforum.org/docs/GCR2017-2018/05FullReport/TheGlobalCompetitivenessReport2017%E2%80%932018.pdf WEF (World Economic Forum). 2019. The Travel and Tourism Competitiveness Report 2019 – Travel and Tourism at a Tipping Point. Geneva: World Economic Forum. http://www3.weforum.org/docs/WEF_TTCR_2019.pdf. World Bank. 2017. Cambodia Economic Update. Cambodia Climbing up the Manufacturing Value Chains. October 2017. World Bank. Cambodia Country Office. Phnom Penh. http://documents.worldbank.org/curated/ en/628341511277852360/pdf/121519-WP-PUBLIC-NOV21-7PM-October-2017-Cambodia-Economic-Update-Final.pdf. World Bank. 2020. Doing Business 2020: Comparing Business Regulation in 190 Economies. Washington, DC: World Bank. https://openknowledge.worldbank.org/handle/10986/32436 World Bank. 2020. Assessing the impact and policy responses in support of private-sector firms in the context of the COVID-19 pandemic. Finance Series. March 26, 2020. http://pubdocs.worldbank.org/en/879461586478617078/COVID- 19-Outbreak-Support-to-Firms.pdf World Bank. 2020 [unpublished]. Cambodia Relief, Recovery and Resilience Development Policy Financing. Program Document. Washington, DC: World Bank. WTTC (World Travel and Tourism Council). 2019. Travel and Tourism Economic Impact 2018 Cambodia. London: WTTC E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A 96 ANNEXES ANNEX 1. OPPORTUNITIES AND CHALLENGES FOR ECOTOURISM IN PAS OPPORTUNITIES CHALLENGES Building a constituency of support for the conservation of Protected areas (PAs) become simply another ‘commodity’ nature through protected areas by providing outstanding and or resource to be exploited by an industry that is more interpreted experiences that communicate the many values interested in profits, access and providing new experiences of protected areas. than supporting conservation. Actively contributing to conservation through involving Ecotourism interests actively undermine good management visitors in management tasks and direct contributions of by pressing for uses, benefits or access that are detrimental finance (e.g., visitor fees, concession fees, etc.) or other in- to the conservation or cultural goals of the protected area. kind support to management. Justifying political support and better funding for The importance of protected area-based ecotourism leads to management by recognizing the importance of protected political support for excessive development in or around the area-based ecotourism to local and regional economies. protected area. Ameliorating ecotourism impacts through sensitive Negative impacts on the environment occur, such as infrastructure planning, remediation of damage caused, and pollution (such as waste disposal, carbon emissions), visitor impact mitigation techniques (such as trail hardening). unsustainable resource use (e.g. water), and damage to sensitive areas (e.g. through poorly developed or located infrastructure). Providing a major incentive, through direct social and Without benefits many poor populations continue to deplete financial benefits, for communities in or near protected wildlife for protection of themselves or property or for profit. areas to safeguard wildlife and tolerate some negative wildlife impacts. Stimulating local economic linkages through local ownership Positive economic linkages fail to materialize due to a lack of tourism assets, management of tourism businesses, of information, opportunity, access to finance, adequate employment, alternative livelihoods, and entrepreneurship policies, or consistency. in the tourism supply chain (e.g. guiding, craft, food and beverages, transport etc.). Adapted from: Leung et al. 2018. Tourism and Visitor Management in PAs. ANNEX 2. TRAVEL AND TOURISM COMPETITIVENESS INDEX SCORES FOR SELECTED SOUTH-EAST ASIAN COUNTRIES FOR 2015-2019 E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A Thailand Malaysia Vietnam Philippines Cambodia Lao PDR 2015-2016 4.64 5.23 4.3 4.39 3.94 4 2017-2018 4.72 5.17 4.36 4.35 3.93 3.91 2019 4.5 4.5 3.9 3.8 3.4 3.4 Source: World Economic Forum Travel and Tourism Competitiveness Reports 2015-2016, 2017-2018, 2019 Note on Annex 1: Scale ranges from 1-7, higher number means better score Ranking for 2015-2016 and 2019 are based on assessment of 140 countries; ranking for 2017-2018 is based on assessment of 137 countries 97 E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A 98 ANNEX 3. TOURISM SEGMENTS IN CAMBODIA PLEASE NOTE: BOXES IN YELLOW ARE STRATEGIC ACTIONS THAT NEED IMMEDIATE ATTENTION Segment 2018 Share of Eco-tourism Main Draw to Motivations to travel to Barriers to travel Travel Companions Example tour Important Notes Arrivals Visitation Market Sizing Cambodia eco-tourism sites operators China 2,024,44 32.6% No data available Gaming, Cultural Time to be in nature, Political Spouse/Partner Sparkle Tours, Chinese tourists are last- but estimated tourism, Shopping backpacking and disagreements Special Interest WildChina or minute bookers. They to be small camping, photography between governments Group /Tour Groups Beyond X Borders can be enticed with last- percentage for social media minute discount deals, Cost 86% use internet to and may plan as little as Activities that require plan their trip (e.g. five days in advance technical skills, such Lack of connectivity to Fliggy and Ctrip) as rafting, or mountain phone signal biking are less popular. Lack of comfortable services (toilets, trails, etc) Lack of availability of Chinese speaking guides ASEAN 2,067,504 33.3 % No data Cultural tourism Safety and security, Time Families (including A2A Safaris Influenced by: Social especially transportation Lack of hard and soft multi-generational) media influencers Brunei infrastructure (toilets, Groups of Friends Online marketing 790 Nature and wildlife signage, trails etc.) Word of Mouth Indonesia 55,753 Lao PDR 426,180 Malaysia 201,116 Myanmar 22,518 Philippines 92,451 Singapore 86,251 Thailand 382,317 Vietnam 800,128 Segment 2018 Share of Eco-tourism Main Draw to Motivations to travel to Barriers to travel Travel Companions Example tour Important Notes Arrivals Visitation Market Sizing Cambodia eco-tourism sites operators Traditional 890,502 14.3 % Four out of every Unique Unique and Overtourism Couples Tour operators very Increasingly stay in Source ten travellers offerings - from transformative Degradation of natural Tour Groups important. Cambodia for the entire Markets Northern from North accommodations, experiences. assets (trash) duration of their holiday Europe America and service-learning Quality of Higher value: Tour These trips can be at 219, 964 Western Europe experiences, great Pristine nature and accommodations Radar, Airbnb either end of the price are adventure guides etc. cultural sites Quality of guiding Adventures, spectrum. High end may Western tourists127 Abercrombie & include Shinta Mani Wild Europe Kent, Audley in the Cardamoms, Song 349, 469 Saa at the beach and Mid-range: Phum Baitung in Siem North G-Aventures, Reap. Lower end may America Intrepid include volunteering or 321,069 Prey Lang. Media (both online and offline) play a significant role in raising awareness amongst this market Domestic 7,497,296 Four Getting out of Cost Families (multi- N/A Cambodians Influenced by: Word of Tourists provinces in the city and into Distance generational will not hire tour mouth the nature Availability of services Friends operators to travel Online advertising ‘ecotourism’ Time to spend (food providers, etc) in Cambodia, TV shows zone. with family instead relying on Relaxation word of mouth or Arrivals in online research. 2018: Kratie 71,636 Mondulkiri 117,719 Ratanakiri 197,292 Stung Treng 172,837 127 ATTA, 2013. Adventure Travel Market Sizing Report 2013 E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A 99 ANNEX 4. CHARACTERISTICS OF INDEPENDENT OUTBOUND CHINESE TOURISTS Stay in one destination for longer Younger. 60 percent are in the More educated. The vast majority at periods. They stay longer than consumer “sweet spot” between least have bachelor’s degrees. group tourists and try to learn 25 and 45. more about the local culture. More sophisticated travelers. Fully More connected. The internet is Demanding. This whole generation inde¬pendent tourists usually are the main source of information of only children that grew up in not on their first trip abroad. Many for independent tourists. They see relative abundance is ac-customed are study, or have studied, in other internet and social networking to high quality and attentive countries. Even when they aren’t access as a major necessity. service. fluent in foreign languages, they They often consult friends for aren’t afraid to deal with locals on travel advice and use first- their own. Younger Chinese are hand travelogues in blogs when more worldly than their parents, planning a trip. but still proudly Chinese. Enjoys indulging. Independent Eager for unique travel experiences. Plan extensively . Independent Chinese tourists aren’t all budget They aren’t as interested in hitting travelers plan out itineraries for travelers. Nearly half spend more the must-see landmarks. To stand up to several months and rarely than RMB9,000 per trip, more than out in their social circles, they veer from their plans. the average of about RMB7,500. seek out uncommon destinations Con¬sumers under 45 make up and niche tours based on classy most of the luxury market, and hobbies like wine appreciation to they mostly shop abroad. express their individuality. Source: Trivett and Skift staff. 2013 E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A 100 ANNEX 5. RECOMMENDATIONS FOR IMPROVING THE LEGAL AND REGULATORY FRAMEWORK FOR ECOTOURISM POLICY RECOMMENDATIONS Protected Areas Law Recommendation 1 Define the phrase “sustainable use of natural resources” to include the enjoyment of the parks by citizens and visitors. Recommend the use be expanded both in the zones and types of areas people can visit. Control negative impacts through policies and management. Recommendation 2 Issue guidance on the concept of “no disturbance”. Protected Area managers should receive training on how to determine if an activity will result in an unacceptable impact. Policies should help park managers balance ecotourism with protection strategies. Recommendation 3 More guidance is needed on EIP fees and user fees. Regulations and rules for each source are generally separate. Guidelines for these fees should be developed at the national level with public input. Law on Concessions Recommendation 1 Determine if the Law on Concessions can be used for non-infrastructure EIPs. If the Law on Concessions cannot be used for non-infrastructure based EIPs, a new law or decree will need to be developed. Given the importance of non-facility-based contracts, writing either a new regulation allowing for use of the Land Law or creation of a new law should be a priority. Recommendation 2 Information regarding the procurement and selection process should be clearly outlined in the Law on Concessions. If not in the law, the information should be published in another publicly trusted form such as a Praka or regulation. This will ensure a fair, open and more transparent process for all potential bidders in the EIP process. Recommendation 3 Practices and procedures based on sound financial practices must be put in place for financial evaluation of EIPs. Evaluation should be conducted by personnel who have the training and capability to evaluate complex business models. Recommendation 4 Develop a comprehensive standard EIP contract that includes industry-standard provisions that are currently missing from the law. This should include monitoring procedures, evaluation, contract modifications, step-in rights, the ability to renegotiate the contract, and termination rights. Recommendation 5 Article 18 appears to provide assignment and encumbrance rights without the approval of the Government. Request a legal interpretation of Article 18. Investors in EIPs should not be allowed to sell, assign, or encumber their contract without approval from the highest levels of the Ministry of Environment. Recommendation 6 Article 24 allows the parties to choose to use laws of other countries for conflict resolution. Consider not allowing this provision to be used in Protected Area EIP contracts. It is an unusual provision and could lead to problematic resolution if a dispute goes to the courts. Recommendation 7 Under Article 25, the law does not appear to describe the process for compensating investors E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A in EIPs for their investment in the infrastructure they have built. EIP contracts should have a provision that describes the value of an investment at the end of the term of the contract. Failing to describe a value/formula can lead to disputes at the end of a contract term. Recommendation 8 Article 30 covers the payment of royalties but does not provide a formula for how those fees shall be calculated. A provision should be written into EIP contracts that prescribes how the franchisee fees will be calculated. Land Law Recommendation 1 Article 49 of the Land Law allows for land EIPs for “social or economic purpose”. However, neither of these categories fit the ecotourism model. This puts the Land Law in contradiction with the Law on Concessions which clearly authorizes eco-tourism. This conflict needs to be clarified to ensure clear policy guidance can be written, and laws, policy and guidance can be easily explained to potential EIP investors and the public. 101 POLICY RECOMMENDATIONS National EcoTourism Policy Recommendation 1 The Policy focuses on infrastructure/eco-tourism resorts in the two models proposed in 3.2.16: the small scale and large-scale model. Those sections both begin by stating: “To achieve the above objectives and goals, the development of ecotourism resorts in the Kingdom of Cambodia shall be based on two models…” The policy primarily focuses on the development of resorts; however, many other opportunities exist for community based eco-tourism – home stays, guiding, cooking demonstrations, tours, etc. These opportunities should be explored and included in the policy. Given the many community based eco-tourism activities not associated with resorts, expanding the objectives to include these types of activities (non-resort) would be a simple way to involve local communities without involving construction. Recommendation 2 The policy, particularly the sections in 3.2.16 regarding large scale eco-tourism development, do not clearly articulate the role of the protected area in regard to issuing tenders/receiving unsolicited proposals and approving eco-tourism activities within the protected area. The Protected Area Law and the Law on Concessions give the Minister of the Environment certain responsibilities and authorities that normally cannot be over-written by policy. It is recommended that the Policy clearly states the roles and responsibilities of the MOE. Recommendation 3 The members of Inter-Ministerial working group are not identified in the policy. This group has significant responsibilities: Review, evaluate and decide on ecotourism projects implemented by communities or national and international organizations; review and evaluate the feasibility of ecotourism development projects; review and monitor the operations of ecotourism development projects; develop necessary regulations to manage ecotourism with sustainable and responsible manner; immediately deal with any issues occurred in ecotourism resorts including technical aspect, legal aspect or in case in joint jurisdiction, handled by the inter-ministerial group. Note the Law on Concessions, Article 4, give many of these responsibilities to the Ministers: “All competent institutions entitled to undertake infrastructure projects within the eligible infrastructure sectors specified in Article 5 of this law, including ministries, institutions, State- owned legal entities, local governments which have been delegated the required institution in accordance with the laws of Cambodia have the power to enter into EIP Contracts for Infrastructure Projects falling within their respective spheres of competence and have the power to enter into ancillary or related agreements, including for the purpose of facilitating any related financing…” The group also have been given many operational responsibilities as well, however, the policy does not mention whether the members are supported by full time staff or how they are supported for their duties. As important as this group is, identifying the membership by title would ensure appropriate levels of representation. In addition, the groups role and responsibilities need to be clarified in relation to the role of the Minister of the Environment and the Protected Area Manager. The Ministers of Tourism and Environment, thru this policy, can work cooperatively to provide eco- E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A tourism activities within protected areas. The roles of the two Ministers should be a greater focus of discussion in the policy and clarified, particularly in relation to the development of EIPs and the community use of protected area lands. Protected area managers should work closely with local communities to support economic development and tourism policies. 102 ANNEX 6. FULLER LIST OF RECOMMENDED STRATEGIC ACTIONS FOR COVID-19 RESPONSE AND RECOVERY IN THE TOURISM AND ECOTOURISM SECTORS PLEASE NOTE: BOXES IN YELLOW ARE STRATEGIC ACTIONS THAT NEED IMMEDIATE ATTENTION Key intervention areas S.N Recommendations Now Within 3 months Within 15-18 months Implementing Agency 1. Governance, 1 Create a national competition to spur innovation and recovery. X MoT Regulatory and Example: UNWTO has created a competition called ‘Healing Organizational Solutions’ to submit ideas that can help the tourism sector Measures reduce the impact of the pandemic and kickstart recovery efforts. 2 Develop and implement a specific communication strategy during X MoT the crisis period. Details to include clear information on travel bans, and to ensure government departments, park officials, hotel staff and tourists are all aware of the current status. All updates to be immediately communicated. 3 Create clear rules around social distancing and group size. This X MoT, MoE, MoH includes measures such as: (a) capping the number of people at heritage sites and waterfalls to maintain appropriate social distance requirements; (b) limit or prohibit food buffets for the remainder of 2020. 4 Extend the ‘special offer’ on Angkor passes until the end of the X MoT year, so 1 day is valid for 2 days, 3 days for 5 days and 7 days for 10 days. 2. Fiscal and 5 Review taxes and charges applied to tourism sector and consider X MEF, MoT Monetary Support waiving it for 2020. 6 Consider reducing visa prices for 2020 and 2021. X MoT; MFAIC 7 Introduce measures to discourage the discounting of flights, X X X MoT hotel stays, and vacation packages. 8 Support salary for furloughed staff and tax relief for 2020/21. X X MEF, MoT 3. Industry and 9 Support activity providers, tour operators and individual guides X X MoT training support to take their experiences online through platforms such as Airbnb Online Experiences. 10 Offer training and upskilling to employees. During recovery X MoT; MoE period, reassure---and retain for the long-term—staff at all levels. 11 Create itineraries and packages catering to the domestic market X X MoT; MoE (including Cambodians and expatriates). E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A 103 E N A B L I N G E COTO U R I S M D E V E L O PM E N T I N C A M B O D I A 104 Key intervention areas S.N Recommendations Now Within 3 months Within 15-18 months Implementing Agency 4. Destination and 12 Prioritize the development of nature based, ecotourism or X MoE, WB Products adventure related destination. Development 13 Promote development of wellness, spirituality, meditation and X MoT, MoE, WB other products as they will be in greater demand after the crisis and people will be seeking more meaning in their lives. 14 Implement no-regrets infrastructure works in destination sites X MoE, WB that allows employment opportunities for local workers. 15 Address key constraints on destinations with domestic X X MoT, MRD, WB markets potential immediately. For instance, improving the road connectivity through blacktopping to the nearest parks or protected areas from the key city centers. 5. Tourism Branding 16 Market domestic itineraries in appropriate channels such as X MoT and Marketing Facebook Groups, Telegram, etc. 17 Prepare a marketing campaign (possibly with influencers) X X MoT, MoE targeting domestic travelers about supporting the local travel industry. 18 Prepare a marketing campaign to Chinese tourists that focuses X MoT on safety, hygiene and Cambodia’s positive track record in containing the virus. 19 Invest in some innovative e-marketing campaigns that link X MoT advertising with destination searches and social media interest. 6.Improving Health, 20 Initiate a clean-up Cambodia campaign to prevent the random X MoE; MoT Hygiene, Sanitation disposal of litter and trash which is such a problem throughout and Service Delivery the country. 21 Support the creation of appropriate hygiene and sanitation X MoE; MoT protocols for tour operators and guides, including frequent disinfecting of equipment, temperature checks etc. including standards for basic packages of health equipment (masks, thermometer, hand sanitizer). 22 Create procedures for dealing with a potential X MoH; MoT COVID-infected guest. 23 Educate on how to communicate transparently, honestly and X X MoH; MoT calmly about new hygiene protocols. 24 Create handwashing stations around heritage or popular X MoE; MoT tourism sites.