Cambodia: New Regulation on Tourism related Penalties

DFDL Cambodia

7th October 2024

On 29 August 2024, the Ministry of Tourism and the Ministry of Economy and Finance issued a Joint Prakas 537 on the Penalties under the Authorities of the Ministry of Tourism setting out a list of penalties in relation to violation of the Law on Tourism and related tourism regulations that are under the authorities of the MOT.

On 29 August 2024, the Ministry of Tourism (“MOT”) and the Ministry of Economy and Finance issued a Joint Prakas 537 on the Penalties under the Authorities of the Ministry of Tourism (“Joint Prakas 537”) setting out a list of penalties in relation to violation of the Law on Tourism and related tourism regulations that are under the authorities of the MOT. This Joint Prakas 537 will come into effect on 1 October 2024 abrogating previous Prakas such as Joint Prakas 160 on Tourism Related Penalties dated 17 February 2020.

The penalties under Joint Prakas 537 include monetary fines (to be paid by specified deadline) and subsequent fines on late payment of up to 20 million riels (approximately USD 5,000).

We note that this new regulation provides clarity, particularly with respect to the delegation of authority to the capital and provincial administrations and some changes regarding the monetary fines, in comparison to the previous Prakas

The table below highlights some of the key offenses and penalties:

In light of the above, we recommend business operators adhere to the requirements set out in the Law on Tourism and to check the expiration date of their licenses or obtain a new license, if necessary, as failure to do so may result in monetary fines as specified in this Prakas.

Written by Vansok Khem and Samnangvathana Sor

Should you have any concerns or queries on the matters mentioned above, please feel free to contact us at cambodia@dfdl.com.

The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.

Vansok Khem

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DFDL Cambodia

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DFDL established its headquarters in Cambodia in 1995. DFDL is licensed as an investment company by the Council for the Development of Cambodia and the Cambodian Investment Board. We are also registered as a private limited company with the Ministry of Commerce. Under these licenses and registrations, we are permitted to provide business consulting, tax and investment advisory service of an international nature.

On 1 March 2016, DFDL and Sarin & Associates joined forces and established a commercial association and cooperation in order to form a new business transactions platform to serve clients with interests in Cambodia and across the expanding ASEAN marketplace.

DFDL and Sarin & Associates have worked together for over 10 years in Cambodia. Sarin & Associates has long been recognized for providing advice to companies in Cambodia in several sectors, such as telecommunication, energy, retail, real estate, financial services, banking, etc.

Our clients are major international and Asian foreign investors in Cambodia, including large foreign and Asian financial institutions. We have been involved in major projects in Cambodia including electricity projects, aviation, telecommunications, infrastructure projects and large real estate projects.

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