Spring 2013 | Emerging Markets Journal | Page 3

Tourism: A Double-Edged SworD

By Christopher Dean

or Kimsath Seng, Manager

of the Ancient Angkor hotel
in Siem Reap, Cambodia,
tourists are the heart of his
business. Seng estimates that about
85 percent of his guests are tourists,
a small slice of the rapidly growing
tourism industry in this beautiful
Asian nation. In 2011, more than 2.8
million tourists visited Cambodia, an
increase of 14.9 percent from 2010.

Cambodia struggles to balance rapid economic

growth with potential environmental concerns

preservation of the unique culture and

past that defines the Cambodian people.
According to the Deputy General
Director of Siem Reaps water supply,
it takes about 20,000 cubic meters
of water a day to satisfy Siem Reaps
water needs, an amount pushed ever
higher by hotel showers and pools.
The citys current water supply plant
can only produce about 9,000 cubic
meters dailyan amount 55 percent
below the requirementforcing the
With a GDP growth rate of 7.3 city to develop alternative methods.
percent, Cambodias economy is A new water purification plant is
booming as it realizes the benefits of an being constructed along the Tonle Sap
expanding manufacturing sector and Lake, the largest lake in Cambodia, in
a thriving tourism industry. Tourists order to provide about 60,000 extra
from around the world now flock to visit cubic meters of water a day. However,
Cambodias ancient temples in Siem according to Cambodias national
Reap, enjoying a captivating country newspaper The Phnom Penh Post,
that was once a hotspot for only the most the plant will not be completed until
adventurous backpacker. As tourism 2018a date that may be too far away
continues to grow, so does the inflow to solve Siem Reapsw short-term
of tourism dollars that has provided a needs. In the meantime, the city will
vital boost to the Cambodian economy. need to balance conservation efforts
A recent World Bank study estimated that limit water usage with sustaining
that more than $1.4 billion were spent in the tourist industry; a balance that
2010 by foreigners on tourism, working becomes more lopsided by the day.
out to a little under 12.5 percent of that
Furthermore, this delicate balance
years total GDP. This surge in tourism, is also being strained elsewhere as
however, is putting an ever increasing Siem Reap moves to begin building
strain on the country and its delicate a new internationwal airport, an
environment. These environmental ambitious billion-dollar project that
issues will require a delicate balance will test Cambodias commitment to
in the future between growth in environmentally friendly policies.
the quickly developing nation and Designed to handle more than 10
million passengers a year, the
GDP Growth Rate, 05-12 project is set to begin construction
in the next few months. Though
progress has been slow since it
began last year, the new airport is
projected to significantly increase
international traffic to Siem Reap
when it is completed, allowing larger
planes and more tourists to visit the
city. This will further stress Siem
WORLD BANK GROUP/ SOURCE
Reaps fragile environment, as new

CHRISTOPHER DEAN /
SUBMITTED PHOTOS
(NOT SO) HIDDEN JEWEL: As
ever more tourists come to visit
Cambodian cultural sites, such as
the ones above, the accompanying
changes have begun to affect the
countrys environment.

land is cleared for development of the

airport and pollution is produced by
the planes engines, and the Cambodian
government must both carefully
consider the implications of the new
airport and work to mitigate the
harm it could do to the rural nation.
Fortunately, Cambodian officials
have begun pushing for stricter
environmental standards. The Phnom
Penh Post reports that the country has
plans to domestically produce green
cars such as Angkor EV 2013, an
entirely electric vehicle being capable
of traveling more than 300 kilometers
on a single charge. This development is
a step in the right direction, and with
the government also having recently
agreed to establish a Global Green
Growth Institution (GGGI) to boost
environmental security and protect
Cambodias forests, there seems to
a growing awareness of ecological
concerns among the countrys leaders.
However, given the significant growth
in tourism that individuals like Kimsath
Seng have witnessed, it is essential that
the Cambodian government continue
taking such progressive steps if it
hopes to preserve the unique culture
of this rapidly globalizing nation.