Cambodian Island Developers Face an Eco-Dilemma

All 61 of Cambodia?s islands are sill pristine and, for the most part, completely untouched, a striking contrast to the heavily developed territories off the coast of Thailand, which, during the course of the past two decades, have been transformed into hotspots for millions of tourists.

But with numerous concession deals having been handed out by the government in recent years to both foreign and Cambodian development firms, the serenity of Cambodia?s offshore locations could soon be a thing of the past with some of the long-awaited projects already underway.

The government and the private sector have continuously stressed that Cambodia must diversify its tourism sector in order to generate more revenue and help boost the economy.

Behind the scenes, however, two schools of thought over how to develop Cambodia?s islands have emerged: large-scale, mass tourism projects, and a simpler vision of luxury eco-boutiques ostensibly closer to nature.

?We want to bring Cambodia up,? said Soush Saroeun, executive director of Asia Real Property.

For Cambodia?s islands to situate themselves on the world stage investors must think big, he said. ?We want to show investors and tourists that to be Cambodian is good.?

To achieve this, Mr Saroeun says projects will probably look at the kind of tourism development that has taken place in areas like the United Arab Emirates, where luxury hotels, swimming pools and fancy bars are commonplace.

Still, turning this into a reality is probably a way off with little infrastructure yet available to support tourism on this level in the country.

?I don?t think if s a matter of sustainability, but more timing,? said Christophe Forsinetti, vice president of Devenco, a private equity fund with two concessions on Cambodian islands.

?If you want a major develop-ment.ior mass tourism, you need basic infrastructure which we don't have today.?

Finding investment partners for large-scale projects had also become increasingly difficult in the aftermath of the global financial crisis, he added.

On Koh Rong where Cambodian conglomerate The Royal Group has acquired ownership, there is plenty of room for development At 78 square km and with 26 natural beaches, Koh Rong is one of Cambodia?s largest islands.

In recent months the construction of a road has become visible on the island?s southeastern side.
?We have mobilized a lot of infrastructure already,? said Kith Meng, chairman of Royal Group. ?We are under the process of completing the master plan and we are employing the engineering [to ensure] a power supply and water supply.?

Another island soon to start developing is Koh Rong Samleoum, located about 17 km from Preah Sihanouk province and just a few kilometers from Royal Group?s Koh Rong.

Som Sokrady, president of Emario Shonan Marine Corporation, one of two companies with concession deals on Rong Samleoum, said construction work on his 65 percent share of the island was due to start later this year.

But in a new age of environmental consciousness, the big question is not so much when these islands will be developed for tourism, but how.

?To ensure the marine life will be maintained, monitoring of the environment is crucial,? said Bart Klus-kens, an adviser to WWF. ?Before, during, and after the construction phase, the marine habitat in the development project's vicinity should be monitored for changes.?

One of the biggest concerns centers round the effects of deforestation, which environmentalists say affects the consistency of the soil causing it to run off easier, devastating the local marine ecosystem.

Deforestation ?will cause sedimentation and corals to get smothered by this silt and are no longer exposed to sunlight, which is necessary for their lifecycle,? said Mr Muskens.

Moreover, the removal of man-groves would have a severe impact on marine life, he said.

Another element that could affect the natural environment on developed islands is waste management

?If domestic waste and waste-water is not properly managed, especially the latter one, this will introduce additional nutrients to the environment mostly in excess, which will influence the water quality,? said Mr Muskens.

The first stage of the development on Rong Samleoum island will include the construction of a six-story hotel holding at least 500 rooms. The clearing of 200 hectares of scrub forest is also planned to give way to an 18-hole golf course.

?We have to think about the environment? Mr Sokrady admitted, though how the company would achieve this was still unclear. ?The master plan is still not finished,? he added.

Rory Hunter, CEO of the property developer Brecon Group, whose company has a concession on two small islands known as Koh Ouen and Koh Bong located 29 km off the coast of Preah Sihanouk province, believes smaller is better.
?Are you looking just to make some money? Or are you looking to create something that in the long run will deliver a return to the shareholders, to the local community and to the country as a whole?? Mr Hunter asks.

His questions run to the center of his own business plan.

Sourced = The Cambodia Daily