Cambodia & Region: Southeast Asia embraces sustainability amid strong hotel growth

Southeast Asia is experiencing a remarkable tourism boom, with visitor numbers soaring across the region. Yet, amidst this rapid expansion, a compelling sustainability narrative is emerging - one that balances economic growth with ecological stewardship and community empowerment.

Knai Bang Chatt - Kep West

From the pristine islands of Indonesia to the bustling streets of Cambodia, the hotel and restaurant industry is increasingly embracing an eco-friendly ethic, setting new standards for responsible luxury and inclusive development.

A new paradigm: Pioneering sustainable hospitality

The region's unspoiled natural beauty and rich cultural heritage have long attracted travelers, but the challenge is to preserve these assets amidst booming resorts. Visionaries like Singaporean shipping magnate Tim Hartnoll have led the way in demonstrating that luxury doesn't have to come at the expense of the environment.

His Bawah Reserve in Indonesia exemplifies this philosophy: handcrafted bamboo structures built without heavy machinery, permaculture gardens that provide 60% of the resort's food and sophisticated water recycling systems that protect the lagoon's delicate ecosystem.

Hartnoll's commitment reflects a broader trend of “barefoot luxury” resorts that harmonize with their surroundings. Throughout the Indonesian archipelago, exclusive private islands such as Pangkil and Joyo limit the number of guests and prioritize local materials and traditions, fostering a model of sustainable tourism that benefits both nature and communities.

Industrial growth meets ecological ambitions

While charming eco-resorts are inspiring examples, Southeast Asia's hotel landscape is also undergoing expansion on an “industrial” scale, driven by major operators and investors.

The region recorded double-digit growth in tourist arrivals in 2024: Vietnam led the way with a staggering 39.5% increase, followed by Thailand (28.1%), Malaysia (24.2%) and Cambodia (22.9%). Singapore and Indonesia also saw significant increases, underlining Southeast Asia's magnetic appeal.

Global players such as TUI are rapidly expanding their footprint, introducing their TUI Blue leisure brand to new markets such as Malaysia, Cambodia and China, alongside established resorts such as Thailand and Vietnam.

The all-inclusive resort model is gaining ground, with Ennismore's partnership with Vietnam's Sun Hospitality Group resulting in the first Rixos Phu Quoc resort, offering over 1,300 rooms and a blend of local culture and Turkish luxury. Meanwhile, Meliá's transformation of its historic Bali property into Paradisus by Meliá highlights the integration of sustainability commitments - zero plastic use, waste reduction and community engagement - into large-scale hotel projects.

Cambodia: the emerging promise of sustainability

Cambodia, often overshadowed by its larger neighbors, is carving out a place for itself in this evolving landscape. With visitor numbers set to rise by 22.9% in 2024, the Kingdom is attracting investors keen to combine tourism growth with sustainable development. The country's rich heritage, beaches and natural beauty offer fertile ground for eco-friendly resorts that respect local ecosystems and empower communities.

Koh Ach Seh, Cambodia

Efforts to integrate sustainability into Cambodia's hospitality sector are gaining ground, in line with regional trends. Operators are increasingly mindful of their environmental footprint and social responsibilities, recognizing that long-term success depends on preserving the very assets that attract visitors.

Major brands champion community and ecology

Major hotel groups are integrating sustainable development into their core strategies. Radisson's future resort in Mui Ne, Vietnam, promises solar power, on-site water bottling and sourcing from local organic producers, including Vietnam's famous coffee growers. IHG Hotels & Resorts amplifies its impact through partnerships that support thousands of families and children in Indonesia and Vietnam, providing education, healthcare and vocational training.

Rajit Sukumaran, IHG's Executive Vice President for East Asia and the Pacific, underlines the company's commitment:

"We improved the lives of over 334,000 people last year. Together with our partners, we will continue to intensify our efforts to make a positive difference in the communities where we operate."

The road ahead: Reconciling growth and responsibility

The hospitality sector in Southeast Asia is at a crossroads. The lure of rapid tourism growth must be tempered by a firm commitment to sustainability. The region's future depends on investors, operators, governments and local communities working together to protect natural ecosystems, preserve cultural heritage and promote inclusive economic benefits.

From Cambodia's emerging beach resorts to Indonesia's eco-islands and Vietnam's solar-powered hotels, Southeast Asia is championing a new kind of tourism, where luxury and sustainability go hand in hand, promising a dynamic and responsible future for this dynamic region.