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Appendix C Tertiary Industry the Study on Regional Development of the Phnom Penh-Sihanoukville Growth Corridor in the Kingdom of Cambodia

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Appendix C Tertiary Industry the Study on Regional Development of the Phnom Penh-Sihanoukville Growth Corridor in the Kingdom of Cambodia Appendix C Tertiary Industry The Study on Regional Development of the Phnom Penh-Sihanoukville Growth Corridor in The Kingdom of Cambodia THE STUDY ON REGIONAL DEVELOPMENT OF THE PHNOM PENH-SIHANOUKVILLE GROWTH CORRIDOR IN THE KINGDOM OF CAMBODIA Appendix C Tertiary Industry TABLE OF CONTENTS C.1 CURRENT SITUATION OF TERTIARY INDUSTRY IN CAMBODIA........C-1 C.1.1 Overview of Tertiary Industry.............................................................C-1 C.1.2 Foreign Investment ..................................................................................C-2 C.1.3 Tourism Sector in Cambodia ...............................................................C-3 C.2 URRENT SITUATION OF TERTIARY INDUSTRY IN THE GROWTH CORRIDOR..................................................................................................... C-11 C.2.1 Employment....................................................................................... C-11 C.2.2 Tourism Sector...................................................................................C-13 C.2.3 Commercial and Other Service Sector ..............................................C-23 C.3 ISSUES IN THE TERTIARY SECTOR DEVELOPMENT IN THE STUDY AREA ................................................................................................C-27 C.3.1 Tourism Sector...................................................................................C-27 C.3.2 Commercial and Other Service Sector ..............................................C-32 C.3.3 Tourism Demand Projection for the Growth Corridor Area..............C-33 LIST OF TABLES TABLE C-1 GDP BY SECTOR (1995 - 2000) ..........................................................C-1 TABLE C-2 GDP OF TERTIARY SECTORS (1995 - 2000) ....................................C-1 TABLE C-3 APPROVED FOREIGN INVESTMENT IN CAMBODIA BY SECTOR............................................................................................................C-3 TABLE C-4 VISITOR ARRIVAL TO CAMBODIA (POCHENTON INTERNATIONAL AIRPORT) BY AIR (1994-2001)..................................C-5 TABLE C-5 MAJOR TOURISM ATTRACTIONS BY PROVINCE........................C-8 TABLE C-6 HOTEL AND GUESTHOUSE IN CAMBODIA................................C-10 TABLE C-7 TRAVEL AGENCY IN CAMBODIA..................................................C-10 TABLE C-8 GOVERNMENT REVENUE FROM TOURISM ............................... C-11 TABLE C-9 EMPLOYMENT BY SECTOR............................................................C-12 TABLE C-10 TOURIST ARRIVALS TO SIHANOUKVILLE...............................C-13 TABLE C-11 ACCOMMODATIONS AND RESTAURANTS IN THE - i - The Study on Regional Development of the Phnom Penh-Sihanoukville Growth Corridor in The Kingdom of Cambodia STUDY AREA ................................................................................................C-19 TABLE C-12 PACKAGE TOURS INCLUDING PHNOM PENH, SIHANOUKVILLE AND KAOH KONG BY TRAVEL AGENTS IN PHNOM PENH ...............................................................................................C-23 TABLE C-13 LOANS AND DEPOSITS IN THE BANKING SECTOR AS OF DECEMBER 2000 ..........................................................................................C-26 TABLE C-14 LENDING CONDITIONS OF COMMERCIAL BANK ..................C-26 TABLE C-15 ESTIMATED TOURIST DEMAND IN THE STUDY AREA (2003-2015) .....................................................................................................C-34 TABLE C-16 ESTIMATED ROOM REQUIREMENT IN THE STUDY AREA ...C-35 LIST OF FIGURES FIGURE C-1 GDP IN TERTIARY SECTOR IN 2000 AT CURRENT PRICE.........C-2 FIGURE C-2 EMPLOYMENT BY SECTOR IN CAMBODIA................................C-2 FIGURE C-3 TOURIST ARRIVALS IN GMS COUNTRIES (2000).......................C-4 FIGURE C-4 VISITOR ARRIVALS TO CAMBODIA BY MODE OF TRANSPORTATION IN 2001 ..........................................................................C-4 FIGURE C-5 VISITOR ARRIVALS TO CAMBODIA BY CONTINENTS.............C-6 FIGURE C-6 TOP 10 COUNTRIES OF VISITOR ARRIVALS BY AIR .................C-6 FIGURE C-7 VISITOR ARRIVALS TO CAMBODIA BY PURPOSE ....................C-7 FIGURE C-8 VISITOR ARRIVALS TO TOURISM REVENUE........................... C-11 FIGURE C-9 TOURIST ARRIVALS TO SIHANOUKVILLE (1996-2001)..........C-14 FIGURE C-10 TOURISM RESOURCES IN THE STUDY AREA ........................C-15 FIGURE C-11 AIR ROUTE TO PHNOM PENH....................................................C-19 - ii - The Study on Regional Development of the Phnom Penh-Sihanoukville Growth Corridor in The Kingdom of Cambodia CHAPTER C TERTIARY INDUSTRY C.1 CURRENT SITUATION OF TERTIARY INDUSTRY IN CAMBODIA C.1.1 Overview of Tertiary Industry The tertiary sector by industrial category are mainly service, commercial and tourism businesses such as transportation, communication, wholesale, retail trade, hotel, restaurant, finance, public administration, real estate, etc. The GDP of the tertiary sector steadily grew every the years. Comparing the GDP by sectors between 1995 and 2000, the GDP of the tertiary sector was 1,395 million US$ in 2000, which accounted for the largest share (44.9%) of GDP among three sectors, while the primary and secondary sectors accounted for 30.9% and 24.3% respectively. In contrast, the GDP of the primary sector was decreased after 1996. The contribution of the tertiary industry to Cambodian economy is and will be substantial. Table C-1 GDP by Sector (1995 - 2000) (at Current Prices) (Million US$) 1995 1996 1997 1998 1999 2000 Primary 1,274 1,285 1,278 1,094 1,080 962 Secondary 432 534 509 560 639 755 Tertiary 1,220 1,337 1,264 1,133 1,327 1,395 Total 2,926 3,155 3,051 2,787 3,046 3,112 Source: Cambodia' s Annual Economic Review 2001, Cambodian Development Resource Institute Looking at the GDP of the tertiary sector by detailed categories, a trade is the largest share with total amount of 422 million US$ in 2000, which accounted for 33.3%, followed by hotel and restaurant (19.4%), public administration (14.7%) and real estate and business (9.9%). Table C-2 GDP of Tertiary Sectors (1995 - 2000) (Million US$) 1995 1996 1997 1998 1999 2000 Transport & 174 183 175 160 178 187 Communication Trade 387 419 392 339 416 422 Hotel & Restaurants 156 233 206 182 231 271 Finance 23 24 22 20 27 37 Public 141 130 129 118 139 134 Administration Real Estate & 136 139 138 127 135 138 Business Other Services 204 208 202 187 201 205 Total 1,220 1,337 1,264 1,133 1,327 1,395 Source: Cambodia's Annual Economic Review 2001, Cambodia Development Resource Institute Nippon Koei/ IDCJ/ KRI International C-1 The Study on Regional Development of the Phnom Penh-Sihanoukville Growth Corridor in The Kingdom of Cambodia GDP in Tertiary Sector in 2000 at Current Price (Million US$) (14.7% (13.4% 205 187 Transport & Cmmmuni. Trade (9.9%) 138 Hotel & Restaurants Finance (9.6%) 134 422 Public Administration (30.3%) (2.7%)37 Real Eatate & Business Other Services 271 (19.4% Source: Cambodia's Annaual Economic Review 2001, Cambodia Development Resource Institure Figure C-1 GDP in Tertiary Sector in 2000 at Current Price Employment in Cambodia and the Study area by sector shows in Figure C-2. The primary sector is dominant in Cambodia with a share of 77.5%. Tertiary sector’s share in Cambodia is 18.2%. Except Phnom Penh and Provincial Centers in Cambodia, most people in Cambodia are engaged in primary industry. 1,076 (18.2%) Unit: 000Persons 240 (4.3%) Primary Secondary 4,694 (77.5%) Tertiary Source: General Population Census 1998 Figure C-2 Employment by Sector in Cambodia C.1.2 Foreign Investment Foreign investment in Cambodia by sector approved by Cambodian Investment Board (CIB) from 1994 to 2001 was summarized in the Tab le C-3. The tertiary industry is separated into services and tourism. In the table shows that the tourism sector was the largest investment in registered capital of 1,775 million US$, which was almost a half of the total registered capitals for all the sectors. On the other hand, the service sector is only 7.8% share of the total registered capitals. -In terms of foreign investment for tertiary sector by country, large investment countries are Malaysia, Taiwan, Singapore, Thailand and France. In the tourism sector, the category of a tourism center accounted for 82% of the total Nippon Koei/ IDCJ/ KRI International C-2 The Study on Regional Development of the Phnom Penh-Sihanoukville Growth Corridor in The Kingdom of Cambodia registered capitals in Tourism sector. According to the investment data by CIB, the large share of the tourism center was due to the huge resort development project in Sihanoukville Province by one Malaysia company with the total registered capital of 1.3 billion US$ in 1995. In the growing demand of tourism sector in Cambodia, the foreign investment for hotel development will continue to increase in Phnom Penh, Siem Reap and Sihanoukville. Table C-3 Approved Foreign Investment in Cambodia by Sector (Approved from Aug. 1, 1994 through Dec. 31, 200１) Foreign Registered Fixed Assets Sector Projects Share Capital (%) (000's $) (%) (000's $) Agriculture (Primary) 80 49.5 172,268 4.5 316,327 Industries (Secondary) 658 77.5 1,538,945 40.6 2,261,854 Services (Tertiary) 76 64.2 300,852 7.9 1,255,724 Construction 13 121,292 637,627 Education 3 4,800 100,192 Engineering 2 1,360 900 Health Services 2 1,150 400 Infrastructure 5 7,550 170,906 Media 3 2,080 5,773 Service Energy 1 500 500 Services 26 28,370 198,048 Telecommunication 11 94,700 110,783 Transportation 9 38,550 29,562 Water Supply 1 500 1,034 Tourism
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