Temporary Suspension of Cambodia Package Tours
Most Existing Cambodia Bookings at Modetour Canceled
Kyowon Tour and Interpark Preparing to Remove Packages from Sale
Concerns Over Declining Demand Across Southeast Asia if Anxiety Spreads
As incidents of kidnapping, confinement, and fraud targeting South Koreans continue to occur in Cambodia, the domestic travel industry has effectively halted the sale of related travel packages. The industry is focusing more on the spread of anxiety among travelers than on the short-term decline in demand for travel to Cambodia. There are concerns that if this situation leads to broader safety fears across Southeast Asia, the ongoing recovery in the market could be reversed.
According to the travel industry as of October 22, Modetour has reported that most reservations for Cambodia travel packages have been canceled. In addition, the company has already stopped selling its Phnom Penh packages, and while packages to Siem Reap-near the major winter tourist destination Angkor Wat-are still listed, there are no new bookings, as a final decision to halt sales is pending. This was explained by Modetour representatives.
Kyowon Tour had planned to start selling packages using irregular flights between Incheon and Siem Reap in December, but due to the local situation, attracting new customers has become virtually impossible. Nolin Interpark Tour also plans to make its Cambodia package products unavailable for booking within this week. However, Hana Tour is currently operating with a minimal number of packages and stated that it will monitor the situation further before deciding whether to suspend sales entirely.
The travel industry is concerned that the current situation in Cambodia could lead to wider anxiety about travel throughout Southeast Asia. Southeast Asia is the region where the domestic travel industry sells the most packages. For example, as of September this year, Southeast Asia accounted for 40.2% of Hana Tour’s outbound travelers, making it the single largest regional destination.
However, while Cambodia has recently gained attention as an alternative destination amid the saturation of other Southeast Asian markets, its sales volume and demand are still relatively low compared to neighboring countries. According to the Korea Tourism Organization, a total of 19,421,133 South Koreans traveled abroad from January to September this year, and of these, 5,864,371 (30.2%) visited seven major Southeast Asian countries: Vietnam, Thailand, the Philippines, Singapore, Malaysia, Indonesia, and Cambodia. Among them, only 106,686 visited Cambodia, accounting for about 2% of Southeast Asian visitors.
This is why travel agencies say they can respond relatively flexibly to the current wave of cancellations and sales suspensions. However, if the perception that all of Southeast Asia is an unsafe travel destination becomes widespread and shared, it could negatively impact the overall business environment and performance.
The travel industry reports that, so far, reservation trends for other Southeast Asian countries such as Thailand and Vietnam remain at normal levels. However, opinions within the industry are somewhat divided. One industry insider stated, "It goes without saying that Cambodia, now perceived as a high-risk country, will see a decline in demand, but there is also a possibility that new demand for neighboring Southeast Asian destinations could decrease. This could undermine the momentum of the Southeast Asian travel market, which had been recovering since COVID-19." The insider added, "Travel consumption is highly sensitive to safety issues, so if negative perceptions spread, it may take longer than expected for the market to recover."
On the other hand, there are views that, since demand for Cambodia has always been limited, there will be little impact on demand for other countries. Another industry insider remarked, "Demand for nearby destinations such as Singapore-which is considered safe-as well as Malaysia, Thailand, and Vietnam, is unlikely to be significantly affected. Since concerns about public safety and security have already been reflected in the market, we should monitor the pace of recovery after mid-November." Both sides agree, however, that it is difficult to predict demand immediately, so they will need to closely monitor trends in new bookings going forward.
In fact, opinions are sharply divided in online travel communities regarding travel to Southeast Asia. One user expressed concern, saying, "I was planning a solo trip to Southeast Asia, but after hearing about this incident, I am too scared to go and am considering canceling or changing my destination." In contrast, there was also considerable support for the opposing view: "This incident involves people caught up in employment scams and does not mean that all travel to Southeast Asia is dangerous."
Given the heightened sense of anxiety and caution about Cambodia and the wider Southeast Asia region, the travel industry is stepping up efforts to provide safety information and strengthen its response. A Modetour representative emphasized, "Since the onset of this situation, we have activated close communication channels with our major local partners to share trends and reservation statuses in real time, and we have further strengthened our flexible and rapid response system." A Hana Tour representative also explained, "We are monitoring safety information through our network of local partners and guides, and we are closely following the guidelines of the Ministry of Foreign Affairs and other relevant authorities, paying close attention to local developments."
Meanwhile, on October 16, the Ministry of Foreign Affairs issued a travel ban for certain areas in Cambodia, effectively prohibiting visits. The Bokor Mountain area in Kampot Province, Bavet City, and Poipet City have been designated as Level 4 'Travel Ban' zones, while Sihanoukville Province, another area with a high concentration of criminal organizations, has been issued a Level 3 'Recommendation to Leave.' Other areas under the Special Travel Advisory (Level 2.5) will continue to be subject to existing restrictions, and all regions not under the Special Travel Advisory or Level 3 or 4 have been issued a Level 2 'Travel Caution' advisory.
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