Hotel boom leaves hospitality sector with an empty feeling

[geovalin]

Ayanna Runcie

As the number of boutique hotels rises rapidly in Phnom Penh, hoteliers say they have seen their occupancy rates drop this year due to the increased offerings – as well as the economic downturn in Europe and terrorism scares in the region.

Nicole Rachle, manager of The 252 hotel in the capital’s Daun Penh commune, said the mid-range hotel’s average occupancy throughout the year has been down 40 per cent, as compared with last year.

She attributed the decline to the rapid growth in the capital’s total available hotel rooms, coupled with economic troubles in Europe that was reducing the number of Europeans travelling.

read more: http://www.phnompenhpost.com/business/hotel-boom-leaves-hospitality-sector-empty-feeling

[bark]

Never see anything about cheap hotels in Cambodia. Why not advertize on Thai Visa, Bangkok Post, etc.

[smotherb]

Cambodia is much cheaper than Thailand for most life-support needs and continuous-stay visas are for sale cheap; however, the infrastructure, both civil and technological are less advanced and the corruption may be more advanced.

[Global Guy]

Cambodia is much cheaper than Thailand for most life-support needs and continuous-stay visas are for sale cheap; however, the infrastructure, both civil and technological are less advanced and the corruption may be more advanced.

So in a nutshell Cambodia is where Thailand was 20-25 years ago. More opportunities there now than in TH.

[Roota]

So in a nutshell Cambodia is where Thailand was 20-25 years ago. More opportunities there now than in TH.

20-25 years, well yes, as a very general figure that feels about right. Not sure what you mean by 'opportunities' but Thailand's economy is roughly 20 times larger than Cambodia's, so there are still far more business and work opportunities here. Corruption, no comparison. Thailand feels downright clean and orderly once you've dealt with the powers that be in Cambodia.

[smotherb]

Cambodia is much cheaper than Thailand for most life-support needs and continuous-stay visas are for sale cheap; however, the infrastructure, both civil and technological are less advanced and the corruption may be more advanced.

So in a nutshell Cambodia is where Thailand was 20-25 years ago. More opportunities there now than in TH.

Some may say that. Certainly, laws are not such a handicap there as here, and there are fewer farang tourists to drive up prices. So, if you are into developing a tourist trap at less cost, you may be right.

[konying]

Market is balancing itself out, clearly not in favor of expansive hotels.

When i first visited PP, there were just 3 choices.

Guesthouses for around $22, a horror

Something OK, was around $40 per night and then the 5 stars $100+

Now, more options have opened up, for $25/night, one can get a decent room, equivalent to what use to be $40 with good security, all the facilities and good location

The old $40 is now asking for $65.

I guess the top end, now has to either offer more or drop prices to compete, simple economics really

[smotherb]

Market is balancing itself out, clearly not in favor of expansive hotels.

When i first visited PP, there were just 3 choices.

Guesthouses for around $22, a horror

Something OK, was around $40 per night and then the 5 stars $100+

Now, more options have opened up, for $25/night, one can get a decent room, equivalent to what use to be $40 with good security, all the facilities and good location

The old $40 is now asking for $65.

I guess the top end, now has to either offer more or drop prices to compete, simple economics really

I was first in PP in August of 1967, visited several times since except for the mid 70's to mid '90s; plenty of cheap and good hotels. I was last there this past June, still many cheap and good hotels--I paid $20 for the Safari with a/c, wifi, private bath and TV, close to Sparky's. The prices are even cheaper in Sinville, paid $15/night at the Aqua Resort for pool, a/c, wifi, tv, private bath, etc.

Of course, you can pay more--some of the Casino Resorts may charge more than $1k/night, but you can also pay less--try several places in Victory Hill in Sinville; $2/night.