Siem Reap is home to the Angkor Archaeological Park, a UNESCO World Heritage Centre, which holds evidence of the Khmer Empire. Since earning the prestigious inscription in 1992, Siem Reap has worked toward becoming a multi-dimensional destination as it expands its tourism offerings.
In 2020, a few sites in Siem Reap and the vicinity were listed as tentative sites for the World Heritage Site nomination. Tremendous infrastructure improvements, such as road upgrades, have added to the appeal of Siem Reap. Furthermore, a new international airport will commence operations in Q4 2023 with improved passenger?handling capacity, which would handle the expected tourism growth over the coming years. Moreover, the Tourism Development Master Plan 2021-2035 aims to establish and develop six priority tourism zones to entice tourists for a longer stay.
Siem Reap’s top-tier resort market demand grew annually from 2017 to 2019 at an average annual growth rate of 5.0 percent. In 2020, the pandemic stunted travel and caused demand to fall by 70 percent. Although Cambodia was one of the earliest Asian countries to relax entry rules and reopen its borders, the market demand remained weak through 2022 as most of the key source?markets were still under various degrees of travel?restrictions and limited flights. However, as demand slowly returned?with a large transient mix, ADR in 2022 reached a new peak. This was likely the result of newly renovated room product in the market and high inflation. Though airlift will take time to recover, a positive sentiment on rate indicates an alternative approach for performance recovery and the long-term potential?of high-yielding, experiential travels.
2023?will be a rebound?year. The top-tier market’s?occupancy is anticipated to reach approximately 70 percent of the 2019 level. In the long run, the market is anticipated to reach a healthier stabilized occupancy at around 60 percent. Riding on positive rate momentum and the?refurbished products, the top-tier hotel market is forecast to drive?higher rate growth than historically achieved before the pandemic. The?market’s?full RevPAR recovery over the next few years is largely?contingent on rate performance.
