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Seven years after the Covid-19 pandemic, Siem Reap, Cambodia's tourism capital, is still struggling to heal its economic wounds. While international visitor numbers showed strong signs of recovery in early 2026, the harsh reality of hundreds of businesses remaining dormant or permanently closed paints a stark and troubling picture of the recovery of the tourism industry in the land of temples.
According to the latest comprehensive report from the Siem Reap Provincial Department of Tourism, the accommodation and food service market in the province is undergoing a large-scale restructuring. Of the 1,512 registered tourism businesses in the area, 196 are currently unable to resume operations. Notably, 124 businesses have officially declared bankruptcy and permanently closed, while 72 others remain temporarily suspended to assess the market. This can be seen as evidence of a prolonged crisis, from 2020 to the present, for which a perfect solution for Cambodia's tourism industry has yet to be found.
In the high-end accommodation segment, Siem Reap's hotel system currently comprises a total of 240 establishments with a capacity of over 13,800 rooms. However, only 199 hotels are actually operating. The remaining 41 hotels have fallen into disrepair, with 22 completely closed and 19 temporarily suspended operations due to lack of capital or insufficient funds to maintain operations. The situation in the guesthouse segment is even bleaker, with 84 establishments (68 closed and 16 temporarily suspended) out of a total of 405 registered establishments, significantly reducing the number of available rooms in the area compared to the pre-pandemic period.
The entertainment and culinary sectors, an indispensable "ecosystem" surrounding the Angkor Wat complex, have also not escaped the downward spiral. Of the 299 registered restaurants, 45 have disappeared from the local culinary map (27 closed and 18 temporarily suspended operations). Even relaxation services like massage parlors and karaoke, once a strength of Cambodian tourism, have suffered a serious decline. Specifically, 18 massage parlors and 8 karaoke venues have had to cease operations after struggling to cover rental costs without generating revenue.
Mr. Thim Sereyvuth, Director of the Siem Reap Provincial Department of Tourism, noted that most of these businesses "collapsed" during the peak of the pandemic and lack the resources to recover. Notably, a new trend has emerged where many investors are no longer enthusiastic about tourism. Instead of waiting for international tourists, they have proactively converted their accommodation facilities into schools or medical centers to seek more stable revenue streams. Although he affirmed that there are currently no new closures and general operations are proceeding normally, the removal of a large amount of tourism infrastructure from the system is still a significant loss for the province's service industry.
Conversely, statistics on tourist arrivals in January 2026 offer a brighter outlook for recovery. In the first month of the Year of the Horse, Siem Reap welcomed 197,881 visitors, including 104,390 domestic and 93,491 international tourists. This is considered an impressive growth rate, demonstrating that the appeal of the Angkor Wat World Heritage site remains strong internationally. However, experts believe this growth is still insufficient to fully revitalize the tourism industry, which has been stagnant for seven years.
Siem Reap is not just a tourist city; it is a symbol, the gateway to the Angkor Wat complex – the national pride of Cambodia.
The 300km distance between Phnom Penh and Siem Reap still presents significant barriers in terms of logistics costs and tourist purchasing power. While the region strives to maintain a large team of over 5,000 tour guides and diverse services ranging from ecotourism to sports tourism, the shortage of mid-range hotels and quality restaurants creates gaps in the tourist experience. Businesses are hesitant to reopen largely due to caution stemming from global economic uncertainties and the pressure of bad debt from the pandemic.
Siem Reap is more than just a tourist city; it's a symbol, a gateway to the Angkor Wat complex – Cambodia's national pride. Siem Reap's recovery is vital to the country's GDP. The fact that hundreds of businesses are still unable to reopen shows that the economic "healing" process requires more than just tourist numbers. It necessitates supportive financial policies, debt restructuring, and in-depth tourism promotion campaigns to attract higher-spending customer segments.
In the near future, expectations for digital transformation and transportation infrastructure upgrades will be the leverage to fill the gaps left by the pandemic. However, in the short term, the issue of 200 vacant businesses remains a reminder of the lingering consequences of Covid-19. Cambodia's tourism industry needs a long-term strategy to transform Siem Reap from a city struggling to recover into a world-class service hub, where every hotel and restaurant can confidently open its doors to the world.
