[PHNOM PENH POST]
Cambodia’s year-on-year tourism growth has drawn more investment in the
hotel sector. The Little Garden, a boutique hotel in Phnom Penh that
opened just six months ago, continues to draw a large number of foreign
visitors. Phnom Penh Post reporters Sorn Sarath and Siem Bunthy
interviewed The Little Garden’s owner, Pisey Pech, who opened the hotel
with local partners and investment capital of US$100,000.
Why did you choose to invest in a hotel?
I first
began my interest in business when I was travelling around a lot
previously, and studied abroad so I could get ideas from other
countries. I noticed that in Cambodia, most hotels are foreign-style and
are owned by foreigners. Because of this, foreigners living in Cambodia
receive all the profit.
You’ve just started, and your hotel is small compared to others. What strategies do you have to grow the business?
First,
for the past six months we have invested in internet advertisements and
have put strict budgets on our operating expenses. We also have a
website that allows tourists to book before they come to Cambodia. Also,
the hotel is well-equipped and a bit cheaper than similar hotels in the
area.
You mentioned that foreign investors are
interested in the hotel sector. Why don’t Cambodian investors have a
larger presence in the business?
Nowadays, most of the
investors in Cambodia are Thai, Malaysian and South Korean. Cambodians
also have money, but the investment level is low and most of them like
investing only in real estate that delivers a quick profit. These hotels
also risk not being around for long. For example, the eruption of the
economic crisis two years ago stunned this business.
Is your decision to start a hotel connected with the present economic and tourism growth of Cambodia?
Although
we know the growth rate of hotels in Siem Reap has increased, in Phnom
Penh it remains limited and cannot accommodate a lot of visitors. I
think my hotel contributes to strengthening the tourist sector in
Cambodia. The government considers the tourism sector a good field in
which to push for economic growth. But most good hotels are controlled
by foreigners, and this money simply flows back overseas.
How do you propose to curb this problem, and what should the government do about it?
The
Ministry of Tourism and Ministry of Commerce must create an
environment that offers opportunities to local investors so our economy
becomes more stable and doesn’t have to depend on foreign investment.
Some investors just invest for a short period of time, which is not good
for our economy.
To encourage Cambodians to run businesses by
themselves, it’s important for Cambodians to have better access to loans
from banks and to make the laws for opening a company more relaxed.
Many
tourists from China and Korea visit Cambodia on travel packages offered
by foreign companies, so the profits often stay in their countries.
What is your opinion on this?
It’s a free market, so it’s
difficult to ban them. But Cambodians and the government should work
closely to try to absorb some of those visitors. We should find a way to
provide good services, and the government should give technical
assistance to local companies.
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