Small and Medium Enterprises & Mr. KOEUT PUTHVORY Deputy Director General of Tourism Ministry of Tourism

Transcription

1 Small and Medium Enterprises & Public Services in Tourism Mr. KOEUT PUTHVORY Deputy Director General of Tourism Ministry of Tourism

2 Presentation Content: I Introduction -Cambodia Tourism in General -Tourism Potential -Policy & Strategy -Tourism Situation II SME in Tourism -Services provider in Tourism SME III - Challenges & Strategy

3 The Government s Policy on the Tourism Sector Cambodia Tourism is Cultural and Natural tourism Tourism sector as one of the top ten priority for Socio-economic growth. Tourism as a System, a major generator of revenue for National Economy, Job & Income creation, Poverty reduction. Tourism contributes to GDP, Trade balance of Payment, promotes Friendship and Cooperation. Conservation of Cultural and Natural Resources. Tourism is a sensitive sector affected by both internal & external factors: politic, economic crisis, socio-cultural and natural problem Climate Change.

4 Four Tourism Priority Areas Siem Reap Angkor Northeast Phnom Penh & Surrounding Costal Area

5 Angkor Wat Temple Heritage of Humanity and World Wonder

6 Eco-Tourism in the Northeast Eco-tourism in the Northeast

7 Eco-tourism in the Northeast Sopheakmith Waterfall

8 Cambodia Tourism in Global Crisis - The impact of global economic downturn has caused number of tourist travelling in the region and the world drop down. - Tourism affected by both Global crisis and Regional political problem Cambodia Tourism still positive ( 5.5% up) 2,125,465 arrivals in 2008 with US$ 1,595 million Income. - In 2009 Tourism has been affected by the crisis First Quarter :( -3.%) 622,288 arrivals - Forecasting: , If -3%, lost : - Tourist: 63,000 - Revenue: US$ 50 Million - Direct Job: 10,000 - If a tourism job can help 3 local people, then about 30,000 people will face living difficulties. However, in 2009 Cambodia Tourism s still strong, remain at its positive stage, with an increase of 2 % (2,161,577). More than this Domestic tourist growth by 4 % ( 7.2 million).

9 Modes of Arrival in 2009 share(%) Air 1,111, % Land 855, % Water ways 71, % Same-day visitor 124, % PNH int l airport 527, % REP int l airport 583, % Water ways, 3.6% Same-day visitor, 5.3% REP, 27% Land, 39.5% PNH, 24.4% Air, 51.4%

10 Tourist Arrivals in Cambodia International Visitor arrivals to Cambodia in , , , ,365 1,055,202 1,421,615 1,700,041 2,125,465 2,161,577 2,015, Tourism growth rate 25-30% per year since 1998

11 Top ten Generated Market from Top Ten Generating Market in , , , , , ,000 50, Vietnam Korea U.S.A Japan China U.K France Thailand Lao PDR Australia Vietnam Korea U.S.A Japan China U.K France Thailand Lao PDR Australia , , , , ,626 98,093 97, ,020 60,933 84, , , , , , , , ,018 94,181 84,581 Source: MOT

12 International Air Cambodia Angkor Air Thai International Airways Vietnam Airline Silk Air Malaysia Airline Dragon Airline Bangkok Airways Shanghai Airline Southern China Airline Lao Airlines Siem Reap Int l Airways Eva Air 23 Airlines operate to Cambodia

13 Gateway to Cambodia O Smach Poi Pet (Banteay Meanchhey) Prom (Pailin City) Daung Chorm (Anlong Veng-Oddar Meanchhey) (Oddar Meanchhey) (Battambang) Siem Reap Int l Airport Trapaing Kreal (Steng Treng) 18 Border Check Points: - With Vietnam 8 - With Thailand 6 Oya Da (Ratanak Kiri) - With Lao 1 - Sea port 1 - Airport 2 Chan Yean (Koh Kong) Phnom Penh Int l Airport Trapaing Phlong (Kampong Cham) Trapaing Sre (Kratie) Sihanouk Pro. Int l Seaport Prek Chak (Kampot) Kaam Samnor (Kandal) Phnom Den (Takeo) Bavet (Svay Rieng) Bantey Chak Krey (Prey Veng)

14 Year Tourist Number, Average Length of Stay, Hotel Occupancy Rate and Tourism Receipts from Number of Tourist Average Length of Stay (day) Hotel Occu. Rate (%) , , , , ,055, ,421, Tourism Receipts in Million USD ,015, , ,125, , ,161, ,561 Tourism revenue shared around % of GDP About 300,000 jobs created by tourism Average of tourist spend per day in 2009 about US$117

15 Tourism Investment in Cambodia From 2003 to 2009 Year Num. of Company USD ,464, ,359, ,575, ,738, ,101,153, ,776,338, ,100,274 Source: Council for Development of Cambodia Note: In 2009 only 8 months

16 Key Tourism Strategy during Global Crisis & Lesson learns 7 KEY TOURISM STRATEGY : 1. Enhance of tourism promotion; 2. The facilitation of travel and tourist transportation and reduce unnecessary barriers; 3.Reduce price of tour package; 4. Diversification and new tourism products development; 5. Encourage the movement of domestic tourist; 6. Management and improvement of quality of the tourism product and 7. National security and tourist safety.

17 Key Tourism Strategy during Global Crisis & Lesson learns Promotion campaign Cambodia: Kingdom of Wonder and Clean City, Clean Resort, Good Service Open-sky policy Visa on arrivals E-visa, K-visa ( for Overseas Cambodian) Visa Exemption for ASEAN member countries Single Visa Visa on arrival available

18 Cambodia Tourism SME Cambodia SMEs in general, account for 93% of all private sector enterprises countrywide and employ approximately half of all employees in the private sector. There are not yet statistics that disaggregate the numbers of tourism business based on employees or capital assets. In general, many of tourism related SMEs activity are locally owned In general, many of tourism related SMEs activity are locally owned and started with low capital investments, such as travel agencies, tour guides, guest-houses, micro transportation providers, restaurants, handicrafts etc. ( Capital: US$ 500,000, employees)

19 Public Services in Tourism SME Why there are Public Services in Tourism SME? - Licenses & - Respect to Government Policy, Laws and Regulations Before Tourism Law, there are in place11 Prakas ( Regulation) Tourism Licenses and + Hotel Classification + Minimize Standard on Tourism Resort. Tourism Law (Chapter 5, Article 22-47), Tourism Policy, Hotels of 3 star and up receive Investment Incentive Policy. ( Hotels with 1-2 star are eligible for Incentives, but must apply by the provincial Authorities (2million investment). MOT has setting up Licensing Unit

20 Public Services in Tourism SME MOT has setting up IT system in Licensing Control and Management and plan to use IT system in Licenses Applying. Develop Web-site for promoting Tourism Industry network. Reduce formality and procedures of Licenses applying ( be finished in 28 days). Hotel Classification and Tour guides Licenses will be extended from 1 year to 2 years ( Hotel Classification until 2009:33 hotels, under requesting 27) Hotel with less than 20 rooms and Guest house with less than 15 rooms are under the provincial Authority Management (including other small tourism businesses).

21 Type of Cambodia Tourism SME Taxi companies, motor bike hire and similar facilities and services. Entertainment facilities: bars, night clubs, karaoke, massages. Shopping centres, markets. Convention and exhibition centres. Sports facilities. Communities base Tourism (29). Homestay activities. Handicrafts, Souvenirs shops. Agro fields ( Agro tourism).

22 Type & Statistics of Tourism SME in restaurants( in 298 in Phnom Penh,113 in Siem Reap) 485 tour operators/ travel agents (372 in Phnom Penh) Tour guides with expertise in different languages (3,170 registered, 2,818 in Siem Reap and 352 in Phnom Penh Tour coach/bus companies; Mekong River and Tonle Sap lake boat cruise companies; Speedboats along the coastal zone.

23 Tourist accommodation in Cambodia in 2009 Destination Hotels Hotel Rooms Guest Houses Rooms of Guest Houses Phnom Penh 159 6, ,351 Siem Reap 118 8, ,929 Coastal Area 59 2, ,468 Eco-tourism Area Others 93 4, ,015 Total ,010 1,018 14,512 + Hotels: Average growth rate of 10-12% per annum since 1998, and 80% of them are tourism SMEs. + Guest house : Average growth rate of 15-18% per annum since 1998.

24 Challenges & Issues in Tourism SME (in general) Lack of financial support Entrepreneurships Human resources development Markets competition International integration and standardization Services quality Infrastructure to link tourism destinations Relationship among SMEs. Renew expired Licenses Misunderstanding between Tourism Licenses and other Licenses Don t want to have Licenses.

25 Key Strategy for good Public Services in Tourism SME - MOT gives more efforts to promote Tourism Law, National Policy, and Tourism Public Awareness. - Enhance the Cambodian tourism Campaign Cambodia Kingdom of Wonder and Clean City, Clean Resort, Good service - Continue to facilitate the tourism license applying. - Create more Standards (Anukrit & Prakas) and review old regulations and norms. - Empower and decentralize the Under National Authority in tourism management and development. - Continue to support Tourism Public Private Sector Working Group

26 Key Strategy for good Public Services in Tourism SME - Continue to encourage in setting up Tourism Marketing and Promotion Board (join with private sector). - HRD. - Diversify tourism sites/eco tourism. - Establish and develop sustainable/pro-poor tourism, especially CBT development, one village one product, night markets, agro tourism etc - Set up more tourism association. - Create more tourism events. - Encourage domestic tourist. - Improve quality of tourist products and services.

27 Conclusion: MOT needs more cooperation and help from all line ministries, NGO private sector other related institutions, authorities and people to complete its roles, especially in implementing Tourism Law and transparency in Tourism SME Public Services provider. If Tourist growth, Tourism SME & Public Services in Tourism SME have to be increase too (more job, income, reduce migration, poverty reduction). In the context of crisis there are approximately 12% unemployment from other sectors move into tourism.

28 Tourism Vision International tourist arrivals to Cambodia from real projection % 5.5% 1,7% 3% ~ 7% Million Source: MOT

29 High Standard Hotel under construction 5 Stars Hotel (2011) 16 Floors 798 Rooms 1 big hall (1500 people) & 7 small halls Parking Lot (800 Cars) Sokha Phnom Penh

30 High Standard Hotel under construction Accord Hotel Phnom Penh (Oct. 2010)

31 Investment Projects in Phnom Penh CAMKO CITY The 1st Global City in PP

32 Investment Projects in Phnom Penh Canadia Bank HQ

33 High Standard Hotel under construction Sokha Beach Extension (End 2009)

34 High Standard Hotel under construction Sokha O'Chheuteal (2012) 5 Stars Hotel 7 Floors 560 Rooms 1 big hall (1200 people) 7 small halls (800 people)

35 High Standard Hotel under construction Master Plan of Emario Hotel and Resort (Japanese Investment 60%done & finish in 2011)

36 High Standard Hotel under construction Sokha Bokor Master Plan (2012) 5 Stars Hotel & Casino 12 to 16 Floors 650 to 950 Rooms 1 big hall (2500 people) 7 small halls 3 Stars Hotel 1000 Rooms 1500 House Golf (18 holes) (Over 900 meters from sea level)

37 Cambodia: Kingdom of Wonder Clean City, Clean Resort, Good Service sumgrkun Thank You! Romduol National Flower