Cambodia Property: Untapped Potential Revealed as Tourism GrowsPosted by David on 3 rd in Cambodia property news, DSR, Investment Property on 3rd of November 2010
The Cambodian government has announced plans to re-launch the national airline, which was scrapped with massive losses on 2000. This time however the airline is being launched with the backing of massive Indonesian conglomerate Rajawali, and will be able to tap into the massively growing number of tourists to Cambodia.
Visitor numbers to Cambodia grew to 2 million in 2006, 60% of whom flew into the country. And with Cambodia being hailed as the new Thailand, because of its virgin white sandy beaches, and undiscovered tropical locations prompting a further 20% rise in tourism for 2007, it is hoped the new airline will be an added boost to the clearly flourishing Cambodia tourism market.
Liam Bailey head of international research for DSR gave his view on the possible effect the airline will have on the Cambodia property market:
“New air routes are always good news for property markets, but the new Cambodia airline, and the likely increase in flights it will generate will be of special significance in Cambodia. The massively successful property markets of Malaysia, Thailand, and Thai islands like Koh Samui, have largely been fuelled by tourism, well in Thailand almost completely fuelled by tourism.
“But in Cambodia, property market growth has been largely limited to Phnom Penh, and fuelled by growth in commercial, business, financial and services sectors. The recent massive increases in visitor numbers, which will be helped by the new airline, will spread property market growth to other areas, and new Cambodian property hotspots will be emerging very soon – perfect timing given that the Phnom Penh property market is showing signs of levelling out.”
Even though Cambodia property has been among the hottest for the past two years, it seems the surface has barely been scratched on the country’s property investment profitability.