Border tensions and the stigma of a fraud hub in Cambodia hurt the tourism industry

Cambodia is struggling to revive its tourism sector as geopolitical tensions and its growing reputation as a cybercrime hub keep tourists away.

Industry, once the main driver of the country’s economy, has shrunk to fill its place 9.4% compared to its gross domestic product in 2024 12.1% In 2019, according to data published by the Ministry of Tourism on Monday.

Cambodia later came under international control reports it is the central hub of fraud center operations. Profits from this illegal activity depended on his political elite, according to to the United Nations Office on Drugs and Crime in June 2025.

There was also a South-East Asian country conflict with neighboring Thailand More than a decade of border dispute erupted into continuous armed conflict in 2025 before the two sides agreed to a ceasefire on December 27, 2025.

Earlier, the two countries had agreed to a ceasefire in June 2025, but the fighting continued. rekindled in early December.

Tourism numbers from the Asia-Pacific region to Cambodia are the worst affected, with a 20% drop in 2025. according to to the ministry.

“The fraud center issue resonates more in East Asia, people hear more about it. People in the US and Europe hear less about fraud centers,” said Stephen Higgins, managing partner of Mekong Strategic Capital.

The biggest drop in visitors in the region was from Thailand, it is down more than 50%amid ongoing border tensions.

South Korean tourists went swimming 20.6%After Seoul in October 2025 loaded The strictest level of its four-level travel warning system effectively bans travel to parts of Cambodia where “work-related fraud and arrests have increased,” according to Google’s translation of the Foreign Ministry’s statement.

After that death The case involved a South Korean student who died after being tricked into working for a fraud organization in Cambodia and tortured.

Chinese travelers to Cambodia have had a broader trend, increased by 41.5% in December, but still less than half of pre-pandemic tourism numbers. This is another blow to the struggling tourism sector, as China is one of Cambodia’s main markets for high-spending tourists. according to According to the ASEAN+3 Office of Macroeconomic Research report last August.

According to a WeChat message from the Chinese Embassy in Cambodia in January, China has pressured Cambodia to eliminate fraud hubs and said its fraud havens risk damaging bilateral relations between the two countries.

Cambodia is cracking down on transnational crime operations within its borders in an effort to shed its tarnished reputation and improve diplomatic relations with other countries.

The country’s authorities withstood 2000 A spokesman for the Cambodian Ministry of Interior said on Saturday that the fraud center had been arrested, as translated by Google.

In early January, Cambodian authorities arrested a suspected fraudster. Chen Zhi. He was extradited to China, Beijing state media confirmed.

There is Cambodia Cooperates with South Korea Since November 2025, he has been engaged in transnational fraud cases. Under the deal, Seoul lowered its December travel warning to Cambodia Level 2 or level 1 warning according to different regions.

On the tourism front, Cambodia’s Ministry of Tourism visa discount for Chinese citizens was introduced in Decemberfor a trial period from June 15 to October 15.

“People will feel safer coming to Cambodia, (…) when they shut down this fraudulent industry, hopefully these reputational issues will go away over time,” said Stephen of Mekong Strategic Capital. “It won’t happen overnight, but it will happen, and then you’ll see an increase in tourism numbers,” he added.