Economic Analysis - Tourism Sector Shrugging Off Political Risk - APR 2018
BMI View: The Cambodian tourism sector, the mainstay of the rapidly growing economy, appears to be unfazed by the government's crackdown on the opposition and we expect strong growth to continue due to positive structural forces. The main risk facing the sector, however, comes from the potential for charismatic former opposition Sam Rainsy to use his strong political connections in the EU and US seek to inspire an opposition uprising.
The recent political turmoil in Cambodia does not hitherto appear to be negatively impacting the domestic economy. The tourism industry, the single largest industry in the economy, outstripping even the garment industry, continues to benefit from improved cultural, language, and infrastructure links with China, which helped drive a 54% jump in tourism figures over the Chinese New Year weekend. According to a February 21 report released by the Ministry of Tourism, the number of tourists, local and international, travelling in Cambodia during the three-day holiday increased to 864,770.
China Leads Tourism Rankings