Hong Kong-listed NagaCorp said this week that it expects to see an increase in the number of direct flights from mainland China to Cambodia this year in what it describes as a “positive sign” for the nation’s tourism industry.
The comments formed part of the company’s FY23 results announcement, which saw its integrated resort NagaWorld in the Cambodia capital city of Phnom Penh record a 65.7% year-on-year increase in net profit to US$177.7 million.
Despite the improvement, NagaCorp noted that the 108 international direct flights to Cambodia from Greater China cities each week as of mid-February represented just 26% of pre-COVID capacity. This compares with 399 flights from Southeast Asia at 83.3% of 2019 levels.
However, it added, “Some airline operators plan to increase weekly direct flights and launch new routes between Cambodia and China in the near term, such as Guangzhou, Shenzhen, Chongqing, Haikou, Jinan, Jieyang, Hainan and Sanya.
“The resumption of flights is a promising sign for the country’s economy and tourism sector as Cambodia expects to attract 7 million international arrivals by 2025, surpassing the pre-pandemic level of 6.6 million arrivals in 2019.”
NagaCorp also claimed that it would directly benefit from the return of Chinese tourism, which it said should lead to an increase in footfall at NagaWorld.
“The Group believes that the tourism sector will maintain its recovery momentum and is expected to see a surge in demand driven by the return of international travel,” it said. “Moreover, increasing flight frequency and new routes boost access for foreign customers, which is beneficial for NagaWorld’s property footfall.
“As Cambodia’s economy expands and global travel rebounds, the Group is well-positioned as the sole integrated resort offering both gaming and non-gaming lifestyle facilities to capitalise on the influx of leisure and business-related travellers returning to Cambodia.
“Looking ahead, the Group is optimistic about the long-term prospects and believes that the outlook remains stable and promising. NagaWorld, being the only integrated resort in Phnom Penh, will continue to benefit from the overall growth of Cambodia by attracting more visitors who are looking for entertainment and luxurious lifestyle offerings at a competitive price and value.”
