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Fears remain despite cautious optimism
Issue of TTG Asia Jul 18 - Jul 24 1997
The political instability in Cambodia has thrown its tourism industry into chaos. DAVID JOHNSON reports.
WHAT is the current situation in Phnom Penh?
Co-prime minister, Mr Hun Sen, seized power in Phnom Penh over a bloody weekend on July 5 to 6 in a violent demonstration of force, tantamount to a coup d'�tat, which sources say left an estimated 58 dead.
The fighting was followed by a spree of looting by civilians and victorious soldiers.
Mr Leo Dobbs, president of the Foreign Correspondents Club of Cambodia, confirmed that thousands of foreigners have been leaving via military aircraft.
At press time, Phnom Penh was quiet and commercial aircraft had not resumed their services to Pochentong International Airport, which was damaged in the fighting.
"The security in Phnom Penh is fine. It is safe. People are starting to work but the big shops and companies are still closed," said Mr Meng Hieng, managing director of Pich Travel & Tours.
But fears of street muggings that led to the killing of a 36-year-old American tourist on July 3 remain.
Battles rage around the Angkor temples complex between the troops of Mr Hun Sen and those loyal to ousted co-prime minister and Funcinpec leader, Prince Norodom Ranariddh, and in other areas of the country where he is stronger.
"People are scared," said Mr Dobbs, adding that more than 100 tourists visiting Angkor had been airlifted out of Siem Reap by helicopter.
Cambodia appears poised for a drawn-out conflict.
However, Mr Luzi Matzig, general manager of Diethelm Travel, in Bangkok, disagrees. "I believe there won't be too much more fighting because all the leaders (of Funcinpec) ran away," he said.
Others are concerned about security at the country's key attraction. "Siem Reap, where there are fears of attack, is unstable. Many people have returned from Angkor Wat and want to go home," said Mr Meng Hieng.
In the immediate term, the tourist industry is dead.
Bookings for tours, airlines and hotels have been cancelled. "The tourism business at the moment is at zero. We have had all our bookings cancelled. We don't expect any growth in the short-term," said Mr Meng Hieng.
"All the expatriates are leaving and airline managers are worried that their planes should not be landing as the airports have been damaged," he said.
The runway has not been affected, but no services can be provided to passengers, he added.
Mr Chanchai Singtoroj, Thai Airways International's vice-president of sales, said all flights to Phnom Penh would be suspended until the situation improves.
Mr Pierre Bernard, resident manager, Hotel Sofitel Cambodiana, said all bookings had been cancelled. "We can foresee that it will be bad in the near future," he noted.
Mr Matzig believes losses in revenue will be minimal and Diethelm Travel's business to Cambodia will be back on track by August.
"By next month we are confident things will operate normally," he said.
Diethelm Travel handles an annual average of 6,000 visitors to Cambodia, and Mr Matzig expects 300 in August.
"We have had some cancellations, but we also have new bookings, starting July 31. There will be some loss but it is not major," he said.
In Cambodia, operators were not so upbeat. East West Siam, at press time, had evacuated its office.
Mr Meng Hieng said: "I don't expect any clients before December because of the situation. The rebirth of tourist activity will not be quick because it takes time to rebuild connections."
Raffles International said its two hotels remain on track, with Hotel Le Royal, Phnom Penh scheduled to open late August, and the Grand Hotel D'Angkor, Siem Reap, to open late November. "We are of course concerned and continue to monitor the situation. But it looks like it is improving," said Ms Diana Ee-Tan, vice-president of marketing, Raffles International.
Mr Thierry Douin, general manager, Hotel Inter-Continental Phnom Penh, said: "The hotel was completely unaffected by the events and the staff are in high spirits. It's business as usual. Some guests were stranded but they have been able to leave.
"As we are south-west of Phnom Penh, we were not in the centre of the shooting."
Protests from ASEAN by delaying the entry of Cambodia into the regional association have reverberated around the world.
Most political observers view Mr Hun Sen's actions as an unlawful seizure of power by violent means that displaced a lawfully-elected government. This view of Cambodia has concerned the travel trade.
"The situation might get worse if the new government is not recognised by the world. Only if it is recognised will the country develop," said Mr Meng Hieng.
A culture of violence has plagued Cambodian society throughout the modern era, and the country now stands at the brink of civil war.
Is the travel trade to believe that Cambodia seriously strives for progress and development, or will the industry turn its back on a country at war with itself?
1. Diethelm Travel has reported continued strong interest in Cambodia. It expects business to be back on track by August.
2. The runway at Pochentong International Airport was not damaged in the fighting.
1. Mass cancellations of hotels and tours could bode trouble for tour operators in Cambodia.
2. Fighting continues near the Angkor temples complex making it unsafe for travel.
3. The new government is not likely to be recognised by the international community and ASEAN has delayed membership creating a potential rift.
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