Phnom Penh Steps up the MICE Race

Tourism arrivals to Cambodia topped the 2 million mark for the time ever in 2007 according to a just released tourism industry report.  The encouraging arrival figure was an increase of 18.5 per cent over the previous year. 

Cambodia’s tourism industry earned some US$140 million in 2007, about 10 per cent of the kingdom’s gross national product.

A number of public and private sector projects currently underway and designed for the MICE and leisure markets are intended to stimulate growth which is projected to reach 3 million arrivals by 2010.

Last month the Asian Development Bank launched a multi million dollar project to restore Cambodia’s devastated railways in a major step towards the creation of a regional rail system.  Approximately 600 km of track destroyed during Cambodia’s protracted civil war are to be rebuilt at a cost of US$42 million.

This is one of the last steps in the creation of a regional railway that will stretch from Singapore to Beijing and eventually see trains running from Singapore to Sihanoukville, Cambodia’s only deep-water port on the country’s southern coast.

[Pictured right: The restored Royal Palace in Phnom Penh is a much-visited attraction.]

The beach resort of Sihanoukville along with the Angkor Wat Historical Park in Siem Reap Province and the Royal Palace in the capital city of Phnom Penh are the main attractions for foreign tourists.

Efforts have significantly intensified to improve the infrastructure for meetings, conventions and incentives in Phnom Penh.

Construction has already commenced on the biggest project underway in the city, the Mekong River-sited Sofitel Convention Centre.  With a pre-function ballroom of 1300 sq. m and a 1700 sq. m grand ballroom, the Sofitel Convention Centre will be able to accommodate 1500 guests.

The adjoining Sofitel Phokeethra Phnom Penh Resort and Spa will have 210 rooms and a number of state-of-the-art facilities as yet unseen in the capital.  Much of the new Sofitel hotel and conference complex is expected to be finished by June 2009.  

As an added incentive to hold MICE functions in Phnom Penh, the Sofitel is building the city’s first championship standard designer 18 hole golf course.  The third green playground in the Cambodian capital, a sporting area just 20 minutes from the hotel and conference centre, is expected to compliment the Sofitel’s extensive MICE facilities. 

Meanwhile, a total refurbishment of Cambodia’s first international standard hotel will be completed by June, said Patrick Murray, General Manager, Hotel Cambodiana, Phnom Penh. 

Marble bathrooms and modern hi-fi systems will be added to 238 rooms that are being totally upgraded.  Shops have been renovated, the lobby has been modernised and entertainment facilities have been expanded, he said. 

Meetings and incentives make up 17 per cent of our business.  More than half of this business stems from corporate meetings, Murray said. 

One of our unique advantages is that we have facilities for live satellite broadcasts.  The Cambodiana is often the venue for regional Asian meetings with delegations of 500 to 600 frequently meeting in our Mekong River back dropped hotel, he said.

We can cater for sit down dinners of 500 guests but also have a huge outdoor area suitable for up to 3000 guests, Murray said. 

[Pictured right: The impressive Cambodiana Hotel in Siem Reap will complete its total upgrade by June.]

We have had incentive groups of 1000 guests and another with 1600 guests that used this large area.  In both instances, the organisers were looking for a new destination and they were very pleased with our facilities and themed Cambodian evenings, he said.

Infrastructure is rapidly improving and access is much better.  Phnom Penh “is going forward at a fast speed”, Murray said.

Such sentiments are echoed across town at another stylish property.  The Raffles Hotel Le Royal gets substantial meetings business from Asia with high end incentives occupying 10 to 35 rooms predominantly come from Europe, said Shanti Gunasekaran, Director of Sales and Marketing.  We have had several very successful incentive groups from Australia, she added.

[Pictured right: The Raffles Hotel Le Royal is a prime MICE destination in Phnom Penh.]

Apart from high standards of personalised service and our sophisticated facilities, another advantage is that an incentive or any corporate event held at the Raffles Hotel Le Royal can be combined with our sister property, the circa 1932 131 room Raffles Grand Hotel d’Angkor in Siem Reap, she said.

Originally built in 1929 by the French as a stylish 55 room hotel, the Raffles Hotel Le Royal underwent a massive two year renovation program and was reopened in 1997 as an even more stylish 170 room hotel in the heart of Phnom Penh. 

Its unusual blend of Khmer, Art Deco and French colonial architecture was sensitively restored in keeping with the palatial tropical property.  It’s been a favourite with incentive groups looking for a one-of-a-kind setting, she said.

“Our MICE business is currently under 15 per cent but we intend to grow this to 25 per cent in two years,” she said. 

Ms Gunasekaran is optimistic this target will be achieved and likely surpassed as people still think “Phnom Penh is exotic.  The charm still holds.  There is a buzz about Phnom Penh; business is definitely growing.”

Exclusive Report by Thomas E. King, TravelMole’s Travel and Lifestyle Editor