Friday, July 14, 2017

Air arrivals in Cambodia soar


Air traffic for Cambodia’s three international airports increased by 23 percent in the first six months of the year, driven largely by growing Chinese tourism and the increased number of international flights to Sihanoukville’s airport, a spokesman for the company that operates the Kingdom’s three international airports said yesterday.

Khek Norinda, communications director of Cambodia Airports, said passenger arrivals at airports in Phnom Penh, Siem Reap and Sihanoukville surged during the first six months of the year, increasing by 23 percent compared to the same period in 2016. Total passenger arrivals reached 4.2 million during the first semester, he said.

I am invested in Nagacorp which owns the Nagaworld casino and entertainment in downtown Phnom Pen. You can read my investment thesis on Nagacorp here. Speaking of Nagaworld they recently reported interim 2017 results. from the report:

1) Gross Gaming Revenue increased by 40% to US$386.8 million
2) EBITDA increased 19% to US$181.0 million
3) Net Profit increased by 20% to US$150.6 million

International arrivals to Cambodia, one of the Group’s business growth drivers, increased 13% to 2.3 million visitors in the first five months of 2017. Visitor arrivals via Phnom Penh International Airport grew 19% over the same period. Further, visitation from China grew by 36% to 0.4 million visitors, surpassing Vietnam to become the top source of arrivals to Cambodia (Source: Ministry of Tourism, Cambodia).

Cambodia continues to grow as tourist destination. It has now surpassed Vietnam as a destination for Chinese tourists which I think will be the main tourist cohort into the future. As tourist numbers grow in Cambodia a certain number of these people will find themselves in the NagaWorld casino spending money.

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