Cambodia’s border tensions and scam hub stigma harms tourism industry

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

The industry, once a major driver of the country’s economy, has shrunk to compensate 9.4% gross domestic product in 2024 12.1% in 2019, according to data published by the tourism ministry on Monday.

Cambodia came under international scrutiny reports The fraud center is a central hub for operations. Profits from these illegal activities were reportedly tied to political elites. based on To the United Nations Office on Drugs and Crime in June 2025.

The Southeast Asian country is also in conflict with its neighbor Thailand over a decades-old border dispute, which escalated into continuous armed conflict throughout 2025 until both sides reached a ceasefire on December 27, 2025.

Before that, the two countries agreed to a ceasefire in June 2025, but clashes flared up again in early December.

Tourism figures from the Asia-Pacific region to Cambodia were the most damaged region, with a 20% annual decline in 2025. based on to the ministry.

“The scam hub issue is getting a lot more resonance in East Asia, people are hearing about it more. People in the US and Europe are hearing less about scam hubs,” said Stephen Higgins, managing partner at Mekong Strategic Capital.

The biggest decrease in the number of visitors in the region came from Thailand. fell over 50%Amid ongoing tensions at the border.

South Korean tourists were devastated 20.6%After Seoul in October 2025 imposed This is the most severe tier of the four-level travel warning system, effectively banning travel to parts of Cambodia where “employment fraud and detentions have increased,” according to a Google translation of the foreign ministry’s statement.

following this death A South Korean student who was persuaded to work at a fraudulent facility in Cambodia allegedly died after being tortured.

Chinese travelers to Cambodia buck the trend, increased by 41.5% in December, but it was still less than half of pre-pandemic tourism figures. This is another blow to the struggling tourism industry, with China being one of the key markets for high-spending tourists in Cambodia. based on According to the report of the ASEAN+3 Macroeconomic Research Office in August last year.

China pressured Cambodia to crack down on fraud hubs, according to a WeChat post from the Chinese embassy in Cambodia in January, adding that its reputation as a fraud haven risked damaging bilateral relations between the two countries.

The country’s authorities achieved this 2,000 A spokesman for the Cambodian Ministry of Internal Affairs said on Saturday that arrests have been made so far at fraud centers, according to Google translation.

In early January, Cambodian authorities arrested Chen Zhi, the alleged leader behind the fraud scam. He was extradited to China, Beijing state media confirmed.

There is Cambodia Cooperates with South Korea To deal with transnational fraud cases since November 2025. Following the agreement, Seoul lowered its travel warning for Cambodia to one level in December. Level 2 or Level 1 alert according to different regions.

On the travel front, Cambodia Ministry of Tourism Visa exemption was introduced for Chinese citizens in DecemberDuring the trial period from June 15 to October 15.

“People don’t feel safe coming to Cambodia, […] “I’m hopeful that as we shut down the fraud industry, these reputation issues will go away over time,” said Mekong Strategic Capital’s Stephen. “It won’t happen overnight, but it will happen and then you’ll see the increase in tourism numbers.”