The tariff turmoil continues to make global markets uncertain, and economic outlooks are reassessed in light of the uncertainty, but strategic planning and long-term investment remain key for growth rather than focusing on short-term challenges.
Moody’s Ratings has cited heightened external pressures linked to global trade uncertainties and domestic economic challenges, and its forecast also suggests that Cambodian GDP growth could be cut from 5.3 per cent for 2025 to 3.3 per cent if the current suggested US tariff imposed on Cambodian goods remains in place.
But a three-pronged approach in encouraging investment, developing infrastructure and connectivity, and increasing tourism (not just quantity but higher-spending visitors), all are positive outcomes for the Cambodian property sector.
If You Build It, Will They Come?
A play on words from the famous 1990s film Field of Dreams, the focus of building with the hope of attracting buyers and investors has evolved in the Kingdom and globally. But increased connectivity and major transport links do support the construction market.
Most recently, the largest infrastructure project in the Kingdom, the Funan Techo Canal, was again in the spotlight but seemed to have some reprieve with China and Cambodia signing further agreements on its construction, which is hoped to underpin a massive change in the Kingdom’s place as a regional supply chain and logistics hub.
Another project touted is a high-speed rail network linking Cambodia to China via Thailand or Vietnam, with a US$ $4 billion price tag to develop the high-speed railway project, but for now it's only at a discussion stage.
There are several other projects which have been reported on for years. The long-term plan of the Cambodian government between 2028 to 2033 is to develop five more railway projects, as well as an urban railway system in Phnom Penh to accommodate the capital’s rapid growth in urban traffic. By the last count, there had been 3-4 feasibility studies on this, but the funding needed is substantial.
On the road network domestically, there are many upgrades with bridges and infrastructure improvements underway. The latest addition to the capital is the Morodok Techo Overpass. The two-story flyover was inaugurated in April 2025.
The reason these connectivity and transport links are key to the property sector is that historically they all lead to new areas of commercial and residential development along the transport routes - the sprawl of the capital to the south in the direction towards the new airport is one such example.
Connect The Kingdom To the World
We are edging closer to the opening of the new airport in Phnom Penh, which brings with it the usual dose of excitement and trepidation as the Techo International Airport is due to open in July 2025. This follows six years of construction, and the massive airport spans 2,600 hectares, while being located 30 kilometres south of the capital.
Charles Vann, director of the airport’s project steering committee, said during one of several media tours that they believe that many passengers are excited by the airport, which is capable of handling up to 13 million passengers a year. Cambodia received around 6.7 million international tourists in 2024
Another media report has suggested Cambodia and Australia will focus on launching direct flights, which is said to be following an alleged sharp rise in Australian interest in Siem Reap.
The suggestion was that more Australians would visit Cambodia if there were direct flights connecting the countries. Before the pandemic, 45,000 Australian tourists visited Cambodia in 2019, which remains nearly the same today, with the Australian Bureau of Statistics indicating approximately 39,300 Australians visited Cambodia in 2024.
Over the past five years, this reporting of increased direct flights to new untapped markets has surfaced several times, and who knows if we are any closer to seeing them materialise But the Techo International Airport is the best hope we have yet of more long-distance carriers flying to Cambodia directly or at least using it as a stopover from other established hubs in the Southeast Asia region.
When Huot Hak, Minister of Tourism, met with Australian Ambassador Derek Yip in April 2025, the pair discussed cooperation to promote direct flights connecting the two nations.
Mr. Huot Hak has also met with the British Ambassador to Cambodia, Dominic Williams, to discuss tourism destinations, travel facilitation, and promotion strategies, as well as Cambodian tourism potential to the United Kingdom.
50 Must-Know FAQs for Real Estate Investors in Cambodia
Cambodia needs to attract more tourists who spend more. Moodys said the same, suggesting that there has been an absence of Chinese tourists despite recovery in tourism to pre-pandemic levels and tourists from neighbouring countries have comparatively diminished tourism receipts. It's not just about how many are coming to visit; more important is how much they are spending in Cambodia.
It should be noted that neighbouring Thailand is reported to be shifting its attention to high-spending European tourists as Chinese visitor numbers decline and the Tourism Authority of Thailand (TAT) is collaborating with major airlines to boost flight frequency and introduce new routes from Europe - this has helped increase arrivals from the UK, France, Italy, Germany, Spain, and the Netherlands.
For Cambodia, the latest news is a connecting flight to Japan, which the Kingdom has not had since pre-pandemic, but this route is not direct and has a stopover. Air Cambodia will launch its Japanese route between Phnom Penh and Osaka (approved by the aviation authorities) with a stop in Fuzhou, China. The flight will operate four times a week, and October 2025 is being suggested as the launch date.
According to the State Secretariat of Civil Aviation, in Q1 2025, Cambodia’s three international airports handled 17,434 flights, which is a 19% increase compared to 2024, while passenger numbers were just shy of two million.
Other routes due to be launched in 2025 are:
- Emirates will start flights between Dubai and Siem Reap in mid-2025, with a stopover in Bangkok
- Turkish Airlines will start direct flights from Istanbul to Phnom Penh with a stopover in Bangkok in December. In October 2025
- Etihad is also due to begin flying between Abu Dhabi and Phnom Penh.
New sea ports are also new entry points for tourism, and the stop-start opening of the Kampot International Tourism Port, which was officially launched on April 21, is intended to better connect tourists to major Cambodian islands, as well as Vietnam and Thailand.
Hosting World Class Sport and Sportstainment
The recent announcement that LIV Golf’s International Series will debut at the Chhun On Golf Resort in Phnom Penh from 9-12 October 2025 is a prime opportunity to showcase the Kingdom on the global sporting stage and often to a very lucrative market.
The event will feature global LIV Golf stars alongside top players from the Asian Tour and should elevate Cambodia’s status as a golf destination, which will boost the country’s tourism and hospitality industries.
Kith Meng, Chairman of Royal Group, said when the news broke, “This event will showcase Cambodia on the global sporting stage, attracting international attention and inspiring local communities to engage with sports. It will also drive growth in our tourism and hospitality industries, while highlighting the rich culture and hospitality of our nation.”
It will also bring high-income earners who could be looking at property investments. Just one example where LIV Golf is seen to benefit its host is in Adelaide in Australia, which is the exclusive home of LIV Golf in the country until 2031 and has resulted in increased tourism and economy. The LIV Golf Adelaide event has contributed AU$ 136 million in its first two years and attracted thousands of visitors, while the tournament’s broadcast reaches more than 500 million viewers across 80 territories.
From a Cambodian perspective, it aligns with the government’s broader strategy to promote sporting tourism, but its track record to date is patchy. The most recent international event was the SEA Games hosted in 2023, which had some positive outcomes for nation-building but also left lots of opportunity to improve upon marketing the event, logistics and improving the fan experience.
The SEA Games 2025 will be hosted in Thailand in December, and it's a great opportunity to showcase Cambodian sports and the country’s potential to the regional market.
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