Cambodia will see further growth

Cambodia's national airline which was scrapped with massive losses in 2000 is to be re-launched at the start of a push to encourage more international interest in the country.

Visitor numbers to Cambodia grew to 2 million in 2006, rose a further 20% in 2007 and is expected to see similar increases in 2008.

It is estimated that almost three quarters of visitors arrive by plane but it is hoped the new airline will boost the Cambodia tourism market which will also have a positive effect on property investment.

The fact that international property advisers Knight Frank have just opened an office in the Cambodian capital, Phnom Penh, is another sign that the property market is growing.

'New air routes are always good news for property markets, but the new Cambodia airline, and the likely increase in flights it will generate will be of special significance in Cambodia. The massively successful property markets of Malaysia, Thailand, and Thai islands like Koh Samui, have largely been fuelled by tourism, well in Thailand almost completely fuelled by tourism,' commented Liam Bailey head of international research for David Stanley Redfern Ltd.

'In Cambodia property market growth has been largely limited to Phnom Penh, and fuelled by growth in commercial, business, financial and services sectors. Increases in visitor numbers, which will be helped by the new airline, will spread property market growth to other areas, and new Cambodian property hotspots will be emerging very soon,' he added.

The Knight Frank office will be run by the company's Malaysian office head, Eric Ooi, with a team of five staff. The firm decided to open the office due to customer demand.

Cambodia, situated to the south of Thailand and west of Vietnam, is fast becoming popular among manufacturers, and Nick Thomlinson of Knight Frank said he believes tourism and residential markets will also grow.

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