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Please Scroll Down for Article This article was downloaded by: [Chheang, Vannarith] On: 10 September 2008 Access details: Access Details: [subscription number 902376647] Publisher Routledge Informa Ltd Registered in England and Wales Registered Number: 1072954 Registered office: Mortimer House, 37-41 Mortimer Street, London W1T 3JH, UK Asia Pacific Journal of Tourism Research Publication details, including instructions for authors and subscription information: http://www.informaworld.com/smpp/title~content=t713694199 The Political Economy of Tourism in Cambodia Vannarith Chheang a a Cambodian Institute for Cooperation and Peace, Cambodia Online Publication Date: 01 September 2008 To cite this Article Chheang, Vannarith(2008)'The Political Economy of Tourism in Cambodia',Asia Pacific Journal of Tourism Research,13:3,281 — 297 To link to this Article: DOI: 10.1080/10941660802280414 URL: http://dx.doi.org/10.1080/10941660802280414 PLEASE SCROLL DOWN FOR ARTICLE Full terms and conditions of use: http://www.informaworld.com/terms-and-conditions-of-access.pdf This article may be used for research, teaching and private study purposes. Any substantial or systematic reproduction, re-distribution, re-selling, loan or sub-licensing, systematic supply or distribution in any form to anyone is expressly forbidden. The publisher does not give any warranty express or implied or make any representation that the contents will be complete or accurate or up to date. The accuracy of any instructions, formulae and drug doses should be independently verified with primary sources. The publisher shall not be liable for any loss, actions, claims, proceedings, demand or costs or damages whatsoever or howsoever caused arising directly or indirectly in connection with or arising out of the use of this material. Asia Pacific Journal of Tourism Research, Vol. 13, No. 3, September 2008 The Political Economy of Tourism in Cambodia Vannarith Chheangà Cambodian Institute for Cooperation and Peace, Cambodia This paper provides an overview of the historical development of the Cambodian political economy and the role of tourism in shaping it since the early 1990s when Cambodia opened its door to the world. The paper provides a general overview of tourism products and the government’s policies in tourism development in Cambodia and then examines the perceived impacts of tourism on socio-economic development. It is argued that tourism plays an important role in socio-economic development and national identity promotion, but that proper management of tourism is required to control the spread of HIV/AIDS and child sex tourism. Key words: tourism, economic development, identity, Cambodia Introduction important foreign exchange earners and employment providers in post-conflict In the 1960s, Cambodia used to be one of the Cambodian economic development. In most famous tourist destinations in Southeast addition, tourism is also seen as a tool to Asia, with annual tourist arrivals from improve the image of Cambodian culture 50,000 to 70,000 (Lam, 1996); but decades and history with the hope of erasing the Downloaded By: [Chheang, Vannarith] At: 00:48 10 September 2008 of civil war, insurgencies, isolation, and par- images of mass killing fields and land mines. ticularly the genocidal regime of the Khmer Rouge almost totally destroyed the tourism industry. After conflict resolution in the early Political Economic Development of 1990s and with strong support from the Cambodia: An Overview international community, Cambodia returned to peace and socio-economic reconstruction. The Kingdom of Cambodia is a former French Since the 1990s, tourism has developed very protectorate, which gained independence in fast in Cambodia. The Cambodian govern- 1953. It is located in mainland Southeast ment views tourism as one of the most Asia, covering a land area of about ÃE-mail: [email protected] ISSN 1094-1665 print/ISSN 1741-6507 online/08/030281–17 # 2008 Asia Pacific Tourism Association DOI: 10.1080/10941660802280414 282 Vannarith Chheang 181,035 km2 with a population of approxi- enriching those in power, particularly those mately 14 million. After gaining independence with power over the privatization of land from France in 1953, Cambodia went through and resources, and created large groups of six major changes in the social, political and marginalized and property-less poor economic system: The Kingdom of Cambodia (Hughes, 2003, pp. 32–33). Only after the (1953–1970); The Khmer Republic (1970– establishment of the Kingdom of Cambodia 1975); Democratic Kampuchea/Khmer in 1993 under a constitutional monarchy was Rouge Regime from 1975 to 1979; The Cambodia allowed to grow. From 1993 to People’s Republic of Kampuchea from 1979 1996, Cambodia’s GDP grew at an average to 1989, later renamed the State of Cambodia rate of 6.1% in real terms, climbing from from 1989 to 1993; and The Kingdom of US$2.2 to US$3.1 billion. Nevertheless, growth Cambodia from 1993 until now. slumped dramatically in mid-1997 following After decades of civil war, the Cambodian factional fighting in Phnom Penh in July and economic and social structure was almost com- the impact of the Asian financial crisis later pletely destroyed. At the end of the cold war, that same year. GDP increased by just 1% in the Cambodian conflict was solved with the real terms in 1997 and 1998. The economic intervention of the five permanent members slowdown, coupled with continued high popu- of the United Nations (China, France, Great lation growth, led to a decline in Cambodia’s Britain, Russia and the USA), resulting in the per capita GDP from $292 in 1996 to $247 Paris Peace Agreement in 1991. This peace in 1998. After total peace and national recon- accord allowed the United Nations Peace ciliation were achieved in 1999, economic Keeping Operations Forces to come in to condition recovered considerably between preserve political stability and security in 1999 and 2006, with an annual average Cambodia in order to arrange a general elec- growth of about 8%. tion in 1993. The election allowed Cambodia The Cambodian Prime Minister Hun Sen to establish a new government with a consti- reported in his speech on 14 April 2007 that: tution mandating plural democracy and respect for human rights. In general, the performance of economic and public The Cambodian economic system was finance policies of the Royal Government from transformed from a command or centrally 2004 to 2006 realized annual economic growth rate Downloaded By: [Chheang, Vannarith] At: 00:48 10 September 2008 planned economy to a market-oriented one on average at 8.3%. From 1999, after the country in 1989 under the reform policy of the State has [sic] regained full peace, the average economic of Cambodia. Beginning in 1989, private growth was 9.5% and inflation rate were [sic] kept property rights were introduced, along with low at the rate of 5% per annum. Income per capita privatization of the state-owned enterprises went up 6% on average from $247 in 1994 to $500 and investments, and prices and the exchange in 2006. International reserve increased by 11 folds rate were allowed to float. However, the econ- [sic] from $100 million in 1994 to $1,097 million in omic reform of 1989 was also a key to 2006 ... The total export increased by 8 folds [sic] strengthening the state’s power to mobilize from $463 million in 1994 to $3,556 million in and administer as well as to pursue economic 2006. (Hun, 2007a, section 5). development (Hughes, 2003, p. 21; Peou, 2000, p. 62). The move to the free market The living conditions have also improved quite economy increased social stratification, modestly. Life expectancy at birth increased Political Economy of Tourism in Cambodia 283 from 52 to 60 years for men and from 56 to 65 if the government cannot provide enough years for women, mainly through rapidly employment for the young Cambodian labor declining infant and child mortality. Material force then it creates social problems. living conditions improved substantially The current Cambodian economic develop- according to indicators on housing conditions ment is attributed mainly to the agricultural and ownership of consumer goods; but such sector, textile industry and tourism industry. growth does not benefit all Cambodians. It About 85% of the Cambodian population results in a large gap between the rich and the lives in the rural areas and more than 75% poor (Ministry of Planning, National Institute of them are employed in the agricultural of Statistics, 2004a). sector. From 1993 to 2005, agriculture con- Cambodian demography shows that the tributed about 25% of the gross domestic Cambodian population is still at an early product (GDP) (Lim, 2006, p. 9). The Cambo- stage of a baby boom (Table 1). It implies dian government regards agriculture “as a pri- that the Cambodian labor force is increasing ority sector for the Royal government”. The rapidly, creating both opportunities and chal- agriculture sector has contributed 30% of lenges for Cambodia. The labor force plays GDP and has actively contributed to reducing an important role in economic growth, but poverty (Hun, 2007a, section 6). Table 1 Population Estimates for Cambodia 1994 and 2004 by Sex and Age Age Group Total 1994 Total 2004 Men 2004 Women 2004 0–4 1,915,000 1,531,000 777,000 754,000 5–9 1,762,000 1,779,000 902,000 877,000 10–14 1,500,000 1,818,000 925,000 893,000 15–19 855,000 1,705,000 876,000 830,000 20–24 899,000 1,443,000 717,000 726,000 25–29 851,000 815,000 388,000 427,000 Downloaded By: [Chheang, Vannarith] At: 00:48 10 September 2008 30–34 759,000 852,000 407,000 445,000 35–39 560,000 802,000 379,000 423,000 40–44 458,000 710,000 334,000 376,000 45–49 354,000 520,000 214,000 306,000 50–54 290,000 417,000 171,000 245,000 55–59 238,000 313,000 131,000 182,000 60–64 202,000 245,000 103,000 141,000 65–69 153,000 186,000 77,000 108,000 70–74 92,000 138,000 57,000 81,000 75 98,000 165,000 66,000 99,000 þ Total population: 10,990,000 13,439,000 6,526,000 6,914,000 Source: Ministry of Planning, National Institute of Statistics (2004b).
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