Starting a tourism business in Cambodia
Travel agency, tour operator, hotel/guesthouse in Cambodia: Ministry of Tourism licences, security deposit, 2% accommodation tax, VAT, patent tax.
- Duration
- Sector licence 3 to 8 weeks after company incorporation
- Difficulty
- Moderate
- Reading
- 7 min
In 3 bullets
- Tourism is one of Cambodia’s most foreigner-friendly sectors — around Angkor (Siem Reap), the coast (Sihanoukville, Kep, Kampot) and Phnom Penh, 100% foreign ownership of the business is allowed. But it is a highly competitive, seasonal market.
- On top of the standard MoC registration, your activity needs a sector licence from the Ministry of Tourism (travel agency, tour operator, hotel/guesthouse, guide) under the Law on Tourism (2009).
- Sector-specific taxes: a 2% Accommodation Tax on room nights (hotels/guesthouses), VAT 10%, the annual patent tax, and income taxes (ToS on wages).
Sector overview
Cambodia lives on tourism: the temples of Angkor in Siem Reap, the beaches and islands of the south coast (Sihanoukville, Kep, Kampot, Koh Rong) and the capital Phnom Penh carry most of the flow. Promising niches for an expat: inbound (receptive) agency, niche tour operator (eco-tourism, adventure, cultural circuits), boutique guesthouse or hotel, online booking platform (OTA).
Three realities to keep in mind:
- Strong competition: hundreds of agencies and accommodations already exist; differentiation (niche, service quality, languages) is vital.
- Seasonality: high season November to February, a trough during the rainy season. Your cash-flow plan must absorb it.
- Foreign ownership generally allowed: travel agency, tour operator, hospitality and restaurants are open to 100% foreign ownership. Land ownership stays reserved for Cambodians — so you usually operate the premises or land via a long-term lease (see foreign entities).
Step 1 — Set up the company (common base)
Before any tourism licence, you need a registered entity. For almost every project that means a Private Limited Company (Co. Ltd.) — see also the comparison which structure to choose.
This step covers:
- MoC registration via the one-stop portal (minimum capital 4,000,000 KHR, ~1,000 USD).
- Tax registration at the GDT (company TIN).
- Patent tax (annual business activity tax) — see the patent tax guide.
- Commercial lease in the company’s name (foreigners cannot own the land).
Step 2 — Ministry of Tourism licences (Law on Tourism 2009)
The Law on Tourism (promulgated 10 June 2009) places the issuance of licences for tourism activities under the authority of the Ministry of Tourism (MoT, tourism.gov.kh): travel agencies and tour operators, tourist accommodation, guides, tourist restaurants, tourist transport. The licence is issued at the national level (Phnom Penh) or by the provincial/municipal Department of Tourism, for a minimum term of one year, renewable.
Travel agency / tour operator licence
This is the key licence for anyone selling tours or stays. The framework is set by Ministry of Tourism Prakas (notably Prakas No. 113 of 9 July 2019 on licences for tour operators, travel agents and branches). Common categories:
- Inbound tour operator (receptive): arranges tours within Cambodia for visitors residing abroad.
- Outbound tour operator: arranges trips abroad for local tourists.
- Travel agent: ticketing, bookings, distribution.
- Online booking platform (OTA): falls under the same regulation as soon as it sells tourism services.
Each branch must obtain its own licence.
Security deposit (bond) for agencies and tour operators
The Law on Tourism requires travel agents and tour operators to provide and maintain a security (cash deposit in a bank or a bank guarantee) to protect customers; the amount is set by Prakas of the Minister of Tourism.
Per Prakas No. 112 of 1 November 2018, the amounts are:
| Operator type | Security deposit |
|---|---|
| Outbound tour operator | 7,000 USD |
| Inbound tour operator | 5,000 USD |
The deposit is held at the Foreign Trade Bank (FTB) and is only refundable on cessation of business, subject to Ministry of Tourism approval.
Tour guide licence
A tour guide must be a Khmer national, over 18, holding a tour-guide certificate and trained/recognised by the Ministry of Tourism. An expat cannot be a licensed guide: plan to employ Cambodian guides (the guide must wear their uniform, ID number and licence while working).
Hotel / guesthouse / accommodation licence & classification
Every tourist accommodation establishment (hotel, apartment-hotel, resort, bungalow, motel, lodge, guesthouse) needs a tourist accommodation licence from the Ministry of Tourism. The tourism.gov.kh portal breaks licences down by capacity (by room-count brackets).
The Law on Tourism also provides a classification system (“stars” / grade) for hotels and accommodation, aligned with international standards and set by sub-decree. Where a grade applies, the licence states the grade of the establishment.
Restaurant for tourists
A tourism-oriented restaurant also falls under the Ministry of Tourism (a “restaurant/food outlet for tourists” licence) on top of municipal permits (hygiene, signage, alcohol). For F&B detail, see the restaurant sector guide.
Cost and duration
- Company (common base): ~700 to 2,500 USD setup, 8 to 15 business days via the MoC portal (see Co. Ltd.).
- Tourism sector licence: typically 3 to 8 weeks after incorporation, plus licence fees (set by Prakas, varying by activity) and, for agencies, the security deposit (5,000–7,000 USD locked at the FTB).
- Realistic launch budget: a viable guesthouse or agency needs far more than the administrative fees — lease (often 1–2 years upfront), fit-out, staff, marketing. Budget tens of thousands of USD.
Required documents (Tourism licence)
- MoC certificate of incorporation + articles.
- Patent tax certificate (company TIN).
- Commercial lease for the premises (hotel, agency, office).
- Capacity evidence: floor plan, equipment, insurance, managers’ qualifications.
- Proof of security deposit at the FTB (agencies and tour operators).
- Official Ministry of Tourism forms + non-refundable fees.
Taxation of the tourism activity
Beyond the patent tax and corporate income tax (TOI, 20%), tourism triggers specific taxes:
Accommodation Tax — 2%
The Accommodation Tax is an indirect tax at a rate of 2% levied on accommodation services in hotels and guesthouses. It is computed on the accommodation fee, inclusive of all taxes and services, except the accommodation tax itself and VAT. It was set out by Prakas No. 173 of the Ministry of Economy and Finance of 20 March 2024 and is administered like VAT. The taxable person (the accommodation provider) files and remits it to the GDT by the 20th of the following month.
VAT 10%
VAT at 10% applies to tourism services (room nights, tours, services). Monthly filing to the GDT. Detail in the VAT guide.
Patent tax and income taxes
- Annual patent tax (31 March deadline) — see the patent tax guide.
- Corporate income tax (TOI) 20% of profit (or minimum 1% of turnover).
- ToS on wages (guides, reception, housekeeping) — see the ToS guide.
Common pitfalls
FAQ
Can a foreigner own 100% of a travel agency or hotel in Cambodia?
Yes for the operation: travel agency, tour operator, hospitality and restaurants are open to 100% foreign ownership. The limit is on land (reserved for Cambodians), worked around via a long-term lease. See foreign entities.
Which licence to sell tours online (OTA)?
A platform selling tourism services falls under the travel agency / tour operator licence from the Ministry of Tourism, just like a physical agency. Being “online” does not exempt you from the licence nor, where applicable, from the security deposit.
Do I have to get my hotel star-rated?
The accommodation licence is mandatory in all cases. The star classification was lightened for small and medium establishments (post-COVID); larger establishments remain concerned. Confirm your situation with the Ministry of Tourism based on your capacity and the current year.
How does the 2% accommodation tax work in practice?
On each room night you levy 2% on the accommodation price (excluding VAT and the accommodation tax itself), on top of 10% VAT. You remit the lot to the GDT by the 20th of the following month, under rules modelled on VAT (Prakas 173 of 20 March 2024).
How long to be operational?
Count 8 to 15 days for the company, then 3 to 8 weeks for the Tourism licence (plus the time to set up the security deposit for an agency). In total, expect 2 to 3 months between starting the procedures and the legal opening, excluding fit-out works.
Sources (4)
Every fact in this guide comes from official documents or government sites. An access date is recorded for each source.