Having returned from a week-long trip to Cambodia (and several other Southeast Asian countries) during Christmas, I was pleased to find that the two cities that I visited there – Phnom Penh (the capital) and Siem Reap – appear to be relatively prosperous. I acknowledge that my perceptions of Cambodia are probably skewed given that these two places do not reflect the situation prevalent in the rural areas of the country (Cambodia is only 23% urbanised, according to UN figures). Nonetheless, cities still offer pointers as to what can be achieved, and as far as I could see, despite the perceived high levels of corruption and the legacy of Pol Pot’s Khmer Rouge regime, the economies of the two cities seem to be doing relatively well. However, reminders of Cambodia’s dark history were evident from the number of people with missing limbs, presumably due to landmine explosions.

Siem Reap

This was my first port of call and where Angkor Wat and other historic temples are located. I was pleasantly surprised by the modern airport; for me airport appearance matters, because this is usually the first thing that visitors see. Immigration clearance staff used a digital camera connected to a laptop to take my picture, as is common practice worldwide these days. Amongst the travelers to the area, I noticed a large number of Asian tourists (South Koreans, Vietnamese and Japanese appear to be the majority), usually from the young-adults to middle-age demographic.

Unsurprisingly, the entire area has become very ‘touristy’, with strategically located restaurants and eateries charging relatively high prices (a meal at a chop-house typically costs about US$4 per person) to foreigners – although I also ate at places for US$1 at markets. However, transport is no problem since you can hire a ‘tuk tuk’ (a motorcycle with a carriage attached) – with its driver, obviously – for a reasonable price of US$15 per day. As with many developing countries, the economy is heavily dollarised, although I also used the local riel currency.

From conversations I had with locals – some of whom spoke English reasonably well – and the state of development in the area, tourism is certainly a boon to Siem Reap’s economy. However, I could not help but suspect that much of the tourism revenues will not necessarily end up with the locals. Many of the hotels and even museums in the area are foreign-funded as Cambodia does not have the financial capabilities to embark on such large-scale projects. Another point to note is that Siem Reap’s economy is perhaps overly geared towards tourism. There is a need to diversify into other industries as it appears that tourism is already saturated.

Phnom Penh

From Siem Reap, I took an air-conditioned coach for the six-hour journey to Phnom Penh. The roads were smooth and the journey comfortable. Phnom Penh is a bustling and polluted city and in some ways comparable to parts of Bangkok. The roads are teeming with motorcycles and the more well-to-do of the younger generation are decked out in the latest fashions. Within the city, there are several large, modern shopping malls, clearly indicative of the increased spending power of the locals.

Less positively, Cambodia risks attaining (if it hasn’t already) a similar reputation for seediness as Thailand. While in Phnom Penh, it was difficult not to notice that the sex industry is booming, with many bars clearly geared towards a certain clientele. That said, the government is making serious efforts to clamp down on child sex tourism, which is encouraging.

In a candid conversation with my guide, it appears that the better educated are less-than-happy with the government in terms of its handling of the economy and corruption. Indeed, vote-buying amongst the rural people appears to be a rampant phenomenon. Despite these issues, Cambodia strikes me as holding much economic promise. The opening up of its borders to foreign capital has allowed investment to pour in, boosting economic growth and generally benefiting the locals. However, a key challenge for the government is to ensure that these gains flow down to the poor population, and not solely to the wealthy or to foreign corporations. Otherwise, the authorities could face a backlash in the years to come.