Cambodia has renewed tax exemptions for tourism businesses in Siem Reap throughout 2026, as visitor numbers to the country continue to fall. The move, announced by the Ministry of Economy and Finance, is aimed at easing pressure on hotels, restaurants, and travel agencies in the province, home to the world-famous Angkor Wat.

Under the scheme, enterprises registered in Siem Reap will be exempt from monthly taxes—excluding VAT and accommodation tax—as well as income tax for the year. Any payments already made will be credited against liabilities in 2027, while firms will also be spared tax audits for 2026. Businesses must still file returns and maintain records, ensuring compliance with national regulations.

The decision comes against a backdrop of declining arrivals. Cambodia welcomed 5.5 million international tourists in 2025, down nearly 17 percent from the previous year.

January figures show visits to Angkor Wat fell by more than a third compared with 2025, generating $4.5 million in revenue. Analysts estimate that losses in ticket sales last year translated into hundreds of millions of dollars in wider economic impact for Siem Reap.

Industry leaders have welcomed the government’s intervention but argue that the relief should not be limited to one province. Thourn Sinan, Chairman of IMCT Co Ltd and the Pacific Asia Travel Association Cambodia Chapter, said the downturn is nationwide, citing border tensions with Thailand, geopolitical uncertainty, and concerns over online scams as factors deterring visitors. “It’s not only in Siem Reap,” he stressed, urging the government to extend tax breaks to Phnom Penh and other regions.

Steve Lidgey, General Manager at Travel Asia a la carte, echoed the call, noting that many agencies are based in the capital. He added that while Western markets are showing signs of recovery, the sector remains fragile after Covid and last year’s regional conflict. “The exemption does help,” he said, “but it should apply more broadly.”

Beyond fiscal measures, experts argue that stronger marketing is essential. Sinan urged the government to launch destination campaigns and expand digital outreach, pointing out that Cambodia lags behind regional competitors in promotion. Lidgey suggested diversifying attractions, from family entertainment to corporate facilities, to reduce reliance on seasonal tourism.

For now, Siem Reap’s businesses will benefit from another year of relief. But with visitor numbers still falling, the wider industry is pressing for a national strategy to restore Cambodia’s place on the global travel map.

-2026-02-18

I'm guessing the border war and banning the sale of Thai goods is having an effect.

It's tough to live in Cambodia at the moment.

I feel sorry for the situation ordinary Cambodians have found themselves in, and admire them as well for their ability to cope during these dreadful times.

I hope things improve sooner rather than later on both sides of the border for the citizens of both countries.

4 minutes ago, Scouse123 said:

It's tough to live in Cambodia at the moment.

With respect, not for me. a UK long term retiree.

The land border closures and the ban and boycott of Thai products and produce has seen a boom in far more acceptable local and non-thai goods in our supermarkets.

AIR ASIA will soon be starting new "Fly Thru"" flights from our new airports in Siem Reap and Phnom Penh to London Gatwick via Kuala Lumpur and Bahrain, avoiding Bangkok. Promotion Fare from 426$ (278 GBP) one way, including luggage in hold!

Yes, there are issues with borders, but who wants to travel into Thailand thesedays - not me!

On 2/18/2026 at 10:23 AM, BritManToo said:

I'm guessing the border war and banning the sale of Thai goods is having an effect.

Amazon cafe Cambodia is still operating, but with virtually no business at all.

Spent an hour in an Amazon in Phnom Penh a few days ago, and, other than me, there was not a single customer.

Asked the barista, and he answered in one word "BOYCOTT"

How can they survive?

1 hour ago, thecyclist said:

Amazon cafe Cambodia is still operating, but with virtually no business at all.

Spent an hour in an Amazon in Phnom Penh a few days ago, and, other than me, there was not a single customer.

Asked the barista, and he answered in one word "BOYCOTT"

How can they survive?

Yes indeed, and I often ask that myself "how can the Thai businesses survive"

Like your Amazon in Phnom Penh. the same ghostly silence here in Siem Reap at the 4 PTT filling stations with their Amazon and 7-11 shops - all boycotted in favour of Caltex, Total, and the major Cambodian energy companies with their coffee shops and convenience stores.

The MAKRO in Siem Reap is a shadow of its former self with all the restaurants and many of the assorted retail outlets all closed down, even 4 of the ATMs have been removed! Vast areas of empty space.

As of 2025–2026, Cambodia imports almost all of its refined petroleum products, primarily from Vietnam, Singapore, China, and Malaysia.(Google)

Yes, I appreciate the former trade with Cambodia is a drop in the ocean for Thaiand but when you see Thai flagship companies struggling to survive in Cambodia it indicates the Khmer nationalist support for their country.

I now wonder if all those empty Thai shipping containers along the Thai border were originally destined to be filled with products for export to Cambodia!

6 hours ago, Burma Bill said:

With respect, not for me. a UK long term retiree.

The land border closures and the ban and boycott of Thai products and produce has seen a boom in far more acceptable local and non-thai goods in our supermarkets.

AIR ASIA will soon be starting new "Fly Thru"" flights from our new airports in Siem Reap and Phnom Penh to London Gatwick via Kuala Lumpur and Bahrain, avoiding Bangkok. Promotion Fare from 426$ (278 GBP) one way, including luggage in hold!

Yes, there are issues with borders, but who wants to travel into Thailand thesedays - not me!

I'll stick with Qatar, Etihad and Finnair or Cathay Pacific, thanks.

Air Asia for a 12-hour flight, sure, the aircraft will be a large intercontinental, but the business model for long haul just wouldn't appeal to me.

I was referring to expats in my post, I meant the Cambodian man and woman in the street who are suffering with the big downturn in tourism, not helped by the problems with Thailand.

What I have to say is this: I have friends both Thai and Cambodian, as well as expats on both sides of the border.

It entirely depends on where the expat is living to easily determine which country's point of view they take. I've seen it with my own eyes.

Many expats in Cambodia are disgruntled expats who used to live in Thailand, and so give a bad opinion of Thailand at every opportunity.

33 minutes ago, Burma Bill said:

Yes indeed, and I often ask that myself "how can the Thai businesses survive"

Like your Amazon in Phnom Penh. the same ghostly silence here in Siem Reap at the 4 PTT filling stations with their Amazon and 7-11 shops - all boycotted in favour of Caltex, Total, and the major Cambodian energy companies with their coffee shops and convenience stores.

The MAKRO in Siem Reap is a shadow of its former self with all the restaurants and many of the assorted retail outlets all closed down, even 4 of the ATMs have been removed! Vast areas of empty space.

As of 2025–2026, Cambodia imports almost all of its refined petroleum products, primarily from Vietnam, Singapore, China, and Malaysia.(Google)

Yes, I appreciate the former trade with Cambodia is a drop in the ocean for Thaiand but when you see Thai flagship companies struggling to survive in Cambodia it indicates the Khmer nationalist support for their country.

I now wonder if all those empty Thai shipping containers along the Thai border were originally destined to be filled with products for export to Cambodia!

Well, that's Nationalist sentiment from many who believe the news that is spoon-fed to them, as it has been for 45 years under Hun Sen.

Very few will openly criticise him and call him a strong leader who loves his country.

That is the Cambodian level of thinking, whereas in the real world, we know a very different Hun Sen.

2 hours ago, Scouse123 said:

I'll stick with Qatar, Etihad and Finnair or Cathay Pacific, thanks.

Air Asia for a 12-hour flight, sure, the aircraft will be a large intercontinental, but the business model for long haul just wouldn't appeal to me.

I was referring to expats in my post, I meant the Cambodian man and woman in the street who are suffering with the big downturn in tourism, not helped by the problems with Thailand.

What I have to say is this: I have friends both Thai and Cambodian, as well as expats on both sides of the border.

It entirely depends on where the expat is living to easily determine which country's point of view they take. I've seen it with my own eyes.

Many expats in Cambodia are disgruntled expats who used to live in Thailand, and so give a bad opinion of Thailand at every opportunity.

With respect, I know disgruntled ex-pats living in isaan Thailand who would be happy to live in Cambodia with its hassle-free visa arrangements

1 hour ago, Burma Bill said:

With respect, I know disgruntled ex-pats living in isaan Thailand who would be happy to live in Cambodia with its hassle-free visa arrangements

I'm not one of them! 😇

20 hours ago, Scouse123 said:

Well, that's Nationalist sentiment from many who believe the news that is spoon-fed to them, as it has been for 45 years under Hun Sen.

Very few will openly criticise him and call him a strong leader who loves his country.

That is the Cambodian level of thinking, whereas in the real world, we know a very different Hun Sen.

I am so sure to what extent the Khmer fall for the Huns propaganda? The more educated Cambodians probably know what is going on. An engineer told me that even if HS and HM didn't get a single vote, they would still win the election. Cambodia is not North Korea. They have access to western media, and are allowed to travel abroad.