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    Southeast Asia
     Mar 31, 2006
Cambodia's rebirth as a tourist destination
By Geoffrey C Gunn

(Republished with permission from Japan Focus)

Characteristically, from Bali in Indonesia to Phuket in Thailand to Laos, Western backpackers led the Southeast Asian tourist charge that began in the 1960s. Spending little but staying long, even the most chauvinistic destinations were able to accommodate this cohort in tourism planning.

They were not, of course, the only tourists.

Famously, as well, during the Vietnam War Bangkok emerged as



the American military's "rest and recreation" destination of choice. Still, Thailand was then only attracting some 200,000 tourists a year. For Cambodia, the figure was some 60,000 before 1970 when war closed in.

But as tourism increased dramatically with cheap air travel in the 1980s, countries such as Thailand and Indonesia began to cash in, upgrading infrastructure, offering visas upon arrival and other incentives. Mass tourism had arrived, drawing in visitors in the millions. Westerners were soon joined by Japanese and other Asian travelers, including those from the rising middle classes of the newly industrialized economies. Today they are being joined by perhaps the largest wave of tourist-travelers to descend upon the region, those from China.

The concept of resort and package tourism came to be replicated across the market economies of Southeast Asia, trading upon exoticism, tropical climate and often the (false) promise of security offered under the mix of military/authoritarian regimes that ran these countries. I recall being handed an emergency tourist police phone number at Manila airport during the Marcos dictatorship in the early 1970s.

On the demand side, tourists were serviced by the production of increasingly informative and sometimes sophisticated guidebooks. Tourist dollars began to figure high in the economies of the region. Multiplier effects rippled through the service industry, rewarding investors but also often reaching into local communities, as in Bali. International tourism became a matter of high-stakes state policy. Across Asia even language change was engineered to communicate with outsiders.

Cambodia, Laos and Vietnam were not part of this boom, and I, plausibly, in August 1974 was the last visitor to Siem Reap, site of the fabled Angkor temple complex, as the communist Khmer Rouge took over. Laos and its communist ally Vietnam long held the tourist invasion at bay by simply not issuing visas. (I was evicted in December 1975 though re-invited in 1980.) In Laos that policy lingered into the mid-1990s. While pro-market Vietnam has gone even further than Cambodia in wooing foreign investment and rides an economic boom, tourism in Laos, albeit rising, pretty much languishes along with its economy.

But in Cambodia, it would take almost two decades - three and a half years of death and trauma under Khmer Rouge rule (1975-1979) followed by several years of Vietnamese occupation and armed resistance and, commencing in 1992 a major UN peacekeeping operation, before even the basic security conditions were met for tourism recovery.

Notoriously, the UN mission and accompanying aid workers - the first returning tourists as it were - also bequeathed unintended infrastructure in the form of "karaoke bars" and hotels, and veritably launched the organized prostitution that has in recent years given Cambodia the dubious reputation of premier sex tourism, even child prostitution, destination. A culture of corruption was also born out of international aid largesse, whether from loose accounting, naivety or other reasons. Still, the "peace" gave pause for pioneering restoration work on parts of the Angkor complex by Indian and Japanese experts, leading to its inscription as a world heritage monument in 1992. All that was missing were the expected tourists.

Cambodia attracts investment
Just as post-conflict Cambodia ditched state socialism in favor of market capitalism, so the first foreign investments began to trickle in, including in the hotel and tourism industry. The expansion of tourism in the new-born Kingdom of Cambodia has matched the nation's political vicissitudes. By 1993 "tourism" had arrived, at least in the capital, Phnom Penh, though still not without its dangers as more than one foreign entrepreneur met with "accident" or even execution, in one case at the hands of renegade Khmer Rouge.

Memories are undoubtedly short but when, in July 1997, the Cambodian strongman, Prime Minister Hun Sen, launched a preemptive coup against co-Premier Prince Ranariddh and extrajudicial killings continued for more than a week, certain categories of foreigners - Japanese civilians included - scrambled aboard Australian evacuation flights mounted from Malaysia. Thai visitors will, however, remember the rampage against Thai property in the Cambodian capital in January 2003 following the alleged national slight by a Thai movie actress who claimed that Angkor was stolen from Thailand. That time around, Thai nationals were evacuated by Thai military aircraft.

The point is that tourists are notoriously risk averse. Following the terror attack in Bali of October 2002, hotel occupancy slumped to 5% from 70% and, following significant recovery, took another hit with the second terror bombing of October 2005. The impact upon the service industry was vast, leaving many of the local victims to lament the relative decline of agriculture and fishing, which had sustained their livelihood and distinct culture since time immemorial. Notoriously, in the Bali case, outsiders, including the family of former president Suharto and military interests, came to dominate prime land and hotels at the expense of locals. The World Bank, which pushed Indonesia to develop this industry in the early 1980s, would have no answer.

The SARS outbreak in 2003 further depressed Asian tourism, just as the great Asian tsunami of December 2004 devastated the resorts and livelihoods around the Bay of Bengal and Andaman Sea. The benefits of tourism can also be counter-cyclical, as demonstrated during the Asian economic crisis of 1997-98 when Western and Japanese tourist arrivals in such hard-hit countries as Thailand and Indonesia actually peaked, in part taking advantage of cheaper currencies.

Having emphasized the increasingly Asian character of mass tourism, it is noteworthy that, in the case of Cambodia, it was only in 2002 that Japanese arrivals (at least as recorded at Phnom Penh International Airport), overtook those of the US, the Association of Southeast Asian Nations countries, France and China. Out of a total of about 1.4 million international visitor arrivals to Cambodia in 2005, Japan registered 137,849, ahead of the US, France, UK and China (59,153). Surprisingly, South Korea topped the list at 216,594 arrivals. To offer some perspective, the number of Japanese tourists visiting Indonesia peaked in 2000 at 643,794, eclipsing Australia (459,994) and South Korea (213,762), and far ahead of the US (176,379). In that year foreign visitor arrivals in Indonesia exceeded 5 million. Thailand, which drew more than 11 million tourists a year before the tsunami, now actively targets Chinese tourists (1 million in 2005), second only to Japanese, long the dominant market.

The down side
The down side of international tourism, from environmental pollution to cultural loss to human trafficking to the spread of HIV/AIDS is now well established, the subject of international forums, public hand wringing and non-governmental organization activism. Cambodia and the Siem Reap area is no exception. Still the facts are stark in the case of Angkor tourism. Rescued by UN intervention from temple robbers - or "tomb raiders" in the Hollywood version - the fabled monument complex now risks being overwhelmed by human predators and their detritus along with degradation from auto emissions, unless serious planning and policing kicks in. The same goes for environmental planning amidst a hotel construction boom. But, policing and planning in Cambodia?

Consider the facts. Given that US$5 billion has been dispensed to Cambodia by international creditors over the past decade, the record is spotty. After the 1997 coup, some donors such as the US suspended aid. Others such as Japan continued existing aid programs but refused to initiate new ones. With aid resumed by 1998, donors meeting in Tokyo focused upon fiscal reform, public administration, demobilization, and forestry and environmental reform. Political reform was absent. It was only in 2004 that the World Bank called on bilateral and multilateral donors to link aid to Cambodia with economic and political reform. According to foreign policy analyst Ronald Bruce St John, growing donor attention to corruption merely addresses the symptoms of the problem rather than the causes. In this argument, the buck stops with the executive power and the political elite, which has it in their hands to manipulate national resources.

Some analysis of who gets what, why and how in Siem Reap would also be illuminating in light of new top-end luxury hotel expansion and in light of the experience of Indonesia (Bali) where lack of transparency and accountability led to wide-ranging abuses across the development and class spectrum. As Matt Gross wrote of tourism development in Cambodia in the travel pages of the New York Times, "Villagers are routinely evicted at gunpoint from their land by the wealthy and well connected ... "

Enjoy your stay, the natives are really nice, but don't ask too many hard questions.

Geoffrey Gunn is Professor of International Relations, Nagasaki University and a specialist on Southeast Asia.

(Republished with permission from Japan Focus )


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