Cambodia’s Sihanoukville Province has seen tremendous growth in infrastructure and development in the past decade, thanks to China’s help. Tourism flourishes, spurring employment opportunities and economic activities.
Unfortunately, a majority of that development comes from casinos and gambling businesses, which are not without their own environmental and social risks. About 90% of businesses present in the Sihanoukville province are Chinese-owned, of which most are casinos.
Cambodians are not allowed to gamble or operate gambling centers. So, while most visitors who gamble are foreigners, casino operations are owned by Chinese tycoons who have made their fortune by making close relations with Cambodian local elites.
In 2020, Chinese investments generated revenue of up to US$5 billion, and most of them came from gambling – a booming business in Sihanoukville following the increasing number of Chinese tourists and immigrants to Cambodia. There were only around 24 casinos in Sihanoukville Province in 2017, and only two years later, there were 100 casinos, mostly catering to Chinese tourists and migrants.
Today, as a Cambodian, I must again note serious concerns about the impact of these casinos on the environment, particularly in Sihanoukville’s sewage system and waste management. Some casinos have been reported to throw waste into the sea, which affects water quality.
This can backfire on the tourism industry since Sihanoukville is known to have the most beautiful beach in Cambodia, which was a favorite place for Westerners.
The Ministry of Environment did intervene by shutting down the casinos that were violating the law, and building more sewage treatment facilities; however, the issue remains as there is still wastewater flowing directly from the casino and public toilets into the sea. In some parts of the beach, such as O’Chheu Teal Beach, as a result of wastewater flowing into the sea, there is a stingy smell around the area which forces tourists to plug their noses.
Despite the fact that Chinese investment has significantly transformed Sihanoukville province, it should also be noted that Cambodia must check the unintended consequences arising from that development.
Lack of construction quality control and no strict law enforcement against the business owners are mostly to blame for this situation. Additionally, casinos and gambling operations have been linked to Chinese criminal organizations, which are involved in illegal activities such as human trafficking and online scams.
For instance, in September 2021, Preah Sihanouk provincial authority raided Galaxy World Casino, in which over 400 foreigners were rescued, most of them Chinese. In August 2022, forty-two Vietnamese escaped from the Chinese-owned casino Pacific Real Estate Company, who were forced to work to scam people. In addition, Khmer Times, a Cambodian local media show that through its investigation, found that scamming is happening extensively in Cambodia’s province of Sihanoukville and Kondal province in which most of the victims are Chinese, Malaysian, Indonesian, Thai, and Vietnamese.
Sihanoukville’s casinos do have a positive overall effect on Cambodia’s tourism. Against this backdrop, I suggest that the government steps up its efforts to curtail the negative impacts.
First, the construction quality of the resorts and casinos must be improved to prevent illegal buildings and ensure that new buildings follow the environmental guidelines imposed by the Sihanoukville administration. Second, the government should strengthen law enforcement, particularly on the individuals or organizations that polluted the sea or construct building encroachments on the public beach. Without strict law enforcement, encroaching on the beach or polluting the sea remains an issue.
Finally, the Cambodian government should enhance the process of adopting a new immigration law which was first drafted back in 2021. The law aimed to forbid foreigners who have criminal records from visiting Cambodia. Law enforcement can help to prevent the effect of casinos on the environment and human security, as it was reported that some casinos in Cambodia are owned by foreigners who are charged with criminal records in China.
Despite the fact that Chinese investment has significantly transformed Sihanoukville province, it should also be noted that Cambodia must check the unintended consequences arising from that development.
Sokvy Rim is a research fellow at the Cambodian Institute for Cooperation and Peace (CICP). His research interests focus on Cambodia’s foreign policy and its engagement with China and Southeast Asian countries.
