A Journey Through History and a Look Ahead at What’s Next for Cambodia’s Air Gateway. Will the Old Airport Become Phnom Penh’s Next Big Project?

A Storied Past: The History of Phnom Penh International Airport

Phnom Penh International Airport (PPIA), Cambodia’s primary air gateway for nearly three decades, stands as a symbol of the country’s post-war rebirth and economic growth. Formerly known as Pochentong Airport, the facility began its transformation into a modern international hub in the 1990s. In 1995, the Royal Government of Cambodia signed a concession agreement with Société Concessionnaire de l’Aéroport (SCA), a joint venture between French conglomerate Vinci Group and Malaysia’s Muhibbah Engineering, to rehabilitate and operate the airport. This public-private partnership marked a pivotal moment in Cambodia’s civil aviation history, ushering in a new era of international connectivity.

Over the past 30 years, PPIA has expanded to meet the rising demands of both tourism and business travel. From accommodating fewer than 500,000 passengers annually in the late 1990s, it grew to handle over 6 million travelers in 2019, prior to the pandemic. Continuous upgrades, including runway enhancements, terminal expansions, and improved air navigation systems, have helped maintain its relevance in a rapidly evolving aviation landscape.

Also read: Is Phnom Penh Really That Expensive to Live In?

A Strategic Location: Where It All Takes Off

PPIA is located approximately 10 kilometers west of Phnom Penh’s city center, in the Dangkor District. Its location has always been one of its greatest assets—close enough to the city for convenience, yet far enough to allow for safe aviation operations. Spanning over 400 hectares, the airport houses a single 3,000-meter runway capable of handling wide-body aircraft, including Boeing 777s and Airbus A330s.

The airport also includes cargo facilities, aircraft maintenance services, and an adjacent commercial zone known as the Airway Complex—an investment led by the Overseas Cambodian Investment Corporation (OCIC). For years, PPIA has been the lifeline connecting Cambodia’s capital to the world.

Enter the Future: Relocation to Techo International Airport

With Phnom Penh’s expansion and air traffic projections rising, Cambodia needed a more ambitious solution. Enter Techo International Airport (TIA)—a bold, multibillion-dollar infrastructure project that will replace PPIA as the nation’s primary international gateway. Situated about 20 kilometers south of Phnom Penh in Kandal and Takeo provinces, TIA is expected to be one of Southeast Asia’s most advanced airports.

The TIA project is spearheaded by Cambodia Airport Investment Co., Ltd. (CAIC), a joint venture between OCIC and the State Secretariat of Civil Aviation (SSCA). The estimated total investment? Over $1.5 billion.

Construction began in 2020 and has moved swiftly. Once completed, the new airport will cover more than 2,600 hectares, with a terminal capable of serving 13 million passengers annually in its first phase, expandable to 30 million by 2050. It will feature multiple runways, high-tech passenger terminals, and state-of-the-art logistics and cargo facilities, setting a new benchmark for aviation infrastructure in Cambodia.

July 2025: A Major Turning Point

As of July 10, 2025, all commercial flights will transfer from PPIA to TIA. The final departure from PPIA will be a Korean Air flight taking off just before midnight on July 9. After this historic moment, the once-bustling airport will go quiet—for now.

Also read: “Visit Angkor” Mobile App! Who Should Use it?

This impending closure has sparked widespread curiosity: What will happen to the land and infrastructure left behind at PPIA?

As it stands, no official announcements or confirmed plans have been made regarding the site’s redevelopment. According to Sin Chansereivutha, SSCA spokesperson, “SSCA hasn’t heard [of] any investment or development projects to take action at the old airport from relevant parties yet.”

A Blank Canvas: Opportunities and Challenges

Despite the uncertainty, industry leaders see tremendous potential. Thourn Sinan, Chairman of IMCT Co., Ltd. and the Pacific Asia Travel Association Cambodia Chapter, envisions the transformation of PPIA into a multifunctional complex. His vision includes:

• A commercial hub featuring retail outlets, hotels, and entertainment venues
• Business parks to attract international and local companies
• Community-friendly green spaces and recreational areas
• An urban transport hub connecting surrounding districts and future development zones

Such projects would not only bring vibrancy to the Dangkor District but also create jobs and bolster the local economy. “Using existing infrastructure for inclusive and sustainable development is the way forward,” Sinan emphasized.

However, he also cautioned against rushing into developments that could harm the environment or displace local communities. “It’s important that future activities are community-oriented and environmentally responsible,” he added.

The Role of OCIC: Key Player or Silent Partner?

Given that OCIC has previously invested in projects around the current airport—including the long-established Airway Complex—speculation is high that it may play a key role in PPIA’s future. While Kuch Pannhasa, Under Secretary of State for the Ministry of Tourism, hinted at possible discussions between OCIC and other stakeholders, OCIC has publicly stated that no formal plans exist at this point.

Also read: What Happens If a Railway ​​Link Connects Cambodia Directly to China?

This silence leaves the door open for various possibilities. Could it become a mixed-use urban center? A tech or innovation park? An educational district? The scale of the land—over 400 hectares—offers flexibility, but the window to act strategically is short.

The Numbers Behind the Sky

Cambodia is witnessing a post-pandemic rebound in air traffic. In just the first four months of 2025, the country recorded 2.5 million air travelers, both inbound and outbound—a notable 18% increase from the same period in 2024. With TIA expected to streamline air travel further, especially for international tourists, that number is only projected to grow.

The tourism industry, closely tied to aviation, stands to gain significantly. With the Royal Government promoting Cambodia as a top regional destination and improving visa facilitation, the demand for quality infrastructure—both airports and tourism-related developments—is rising.

Thus, how the PPIA site is repurposed will not only impact Phnom Penh but will also reflect the country’s broader vision for sustainable growth.

Lessons from Other Countries: Inspiration for Cambodia

Across the world, decommissioned airports have been successfully repurposed into thriving urban developments. Examples include:

• Berlin’s Tempelhof Airport, transformed into a public park and cultural space
• Hong Kong’s Kai Tak Airport, now a sprawling residential and commercial district
• Denver’s Stapleton Airport, reborn as a model green community

These cases show that with the right vision, planning, and stakeholder collaboration, former airport sites can become powerful catalysts for urban renewal and economic development.

Looking Ahead: A Call for Vision and Action

As PPIA enters its final chapter as Cambodia’s main air hub, the question is no longer if it will close—but what comes next. Without a clear plan in place, the risk of missed opportunities looms large.

Also read: What are the best businesses to start in Cambodia?

This moment demands strategic leadership, community involvement, and bold yet responsible investment. The land that once welcomed millions of travelers each year holds the potential to become a cornerstone of Phnom Penh’s next phase of growth—if its future is guided with purpose.

Will it be a public asset? A commercial success? A green urban haven?

The future of Phnom Penh International Airport may be unwritten, but the possibilities are vast.

More Than an Airport—A Legacy in the Making

Phnom Penh International Airport has long been more than just a transportation hub. It’s been a gateway for families reuniting, businesses growing, tourists exploring, and a nation reconnecting with the world. As the city prepares to embrace a new era at Techo International Airport, the legacy of PPIA deserves to live on—not just in memory, but in the life it can still breathe into the community it once served.

What happens next will define not just a piece of land, but a vision for how Cambodia grows—boldly, sustainably, and inclusively. The runway may close, but the journey continues.

Phnom Penh: The Fourth Most Expensive City in ASEAN — What This Means for Locals, Travelers, and Investors? Is Phnom Penh Really That Expensive to Live In?

Overview of Phnom Penh City

History of Phnom Penh

Phnom Penh, the vibrant capital of Cambodia, is a city steeped in history and resilience. It became the capital in 1865 during the reign of King Norodom and was once referred to as the “Pearl of Asia” due to its beautiful colonial architecture and scenic location at the confluence of the Mekong and Tonlé Sap rivers. The city faced a dark chapter during the Khmer Rouge regime in the 1970s, but since the 1990s, Phnom Penh has undergone a remarkable transformation.

Today, it represents a dynamic fusion of tradition and modernity — from golden temples and royal palaces to high-rise buildings and international franchises.

Population

As of 2025, Phnom Penh’s population is estimated to be over 2.5 million, making it the most populous city in Cambodia. This rapid urban growth is driven by internal migration from provinces, foreign expatriates, and investors seeking opportunities in Cambodia’s growing economy.

The urban landscape is expanding with new satellite cities such as Koh Pich (Diamond Island), Chroy Changvar, and the under-construction Techo Takhmao International Airport zone, promising further urban sprawl and economic activity.

Lifestyle in Phnom Penh

Phnom Penh offers a compelling mix of traditional Cambodian life and modern urban living.

• Travel and Tourism: Popular destinations include the Royal Palace, National Museum, Wat Phnom, and the Tuol Sleng Genocide Museum. The bustling riverside promenade and river cruises offer relaxation in the heart of the city.
• Shopping and Dining: Phnom Penh’s shopping scene has evolved with the introduction of luxury malls like AEON Mall, Chip Mong 271 Mega Mall, and Olympia Mall. Meanwhile, traditional markets like Central Market and Russian Market remain favorite spots for locals and tourists alike.
• Entertainment: The city has a growing nightlife with rooftop bars, clubs, karaoke lounges, cinemas, and cultural performances at venues like the Cambodian Living Arts Center.
• Connectivity in Cambodia: Phnom Penh is well-connected to other parts of Cambodia via National Roads and rail lines. It serves as a hub to Siem Reap (Angkor Wat), Sihanoukville (beach and port), Kampot (eco-tourism), and the upcoming international airport is set to enhance global access further.

Phnom Penh – The Fourth Most Expensive City in ASEAN

In 2025, Phnom Penh ranked as the fourth most expensive city in Southeast Asia according to Numbeo’s Cost of Living Index. The index measures cost-related metrics such as rent, groceries, restaurant prices, and purchasing power.

Also read: Why Are Small Malls in Phnom Penh Shutting Down?

ASEAN Cost of Living Rankings (2025)

1. Singapore – Index: 79.1
2. Phuket – Index: 38.1
3. Bangkok – Index: 37.1
4. Phnom Penh – Index: 36.9
5. Manila – Index: 34.3
6. Pattaya – Index: 33.6
7. Kuala Lumpur – Index: 33.3
8. Ho Chi Minh City – Index: 28.5
9. Jakarta – Index: 28.4
10. Hanoi – Index: 27.7

Key Index Metrics for Phnom Penh:

• Rent Index: 11.6
• Groceries Index: 43.9
• Restaurant Index: 27.1
• Local Purchasing Power Index: 26.6

These numbers highlight that although rent remains relatively affordable compared to Singapore or Bangkok, groceries and dining out are becoming pricier, creating a squeeze for local residents, especially those on lower wages.

Also read: First Day in Cambodia! Warned NOT to Visit Phnom Penh?

A one-bedroom apartment in the city center can cost around $400/month, and an average local meal costs about $3. While this may seem affordable to foreigners, for many Cambodians — especially garment workers or informal laborers — these prices are steep.

Experts attribute this high cost to:

• High import dependency for consumer goods
• Limited local manufacturing
• Urban migration increasing demand for housing
• Tourism and foreign investments inflating service prices

Moreover, the income gap between city workers and provincial laborers is widening, intensifying economic disparities within Cambodia.

Travel Safety in Phnom Penh

Phnom Penh is generally safe for tourists, but like any growing metropolis, there are areas of caution:

Safety Tips for Travelers:

• Petty Theft: Watch out for bag snatching, especially on motorbikes. Use cross-body bags and stay alert in crowded markets or during tuk-tuk rides.
• Traffic Hazards: Traffic in Phnom Penh is chaotic. Pedestrians should be cautious when crossing streets. Many drivers do not follow traffic lights or lane rules.
• Scams: Be wary of overpriced taxis or currency exchange frauds. Use trusted ride-hailing apps and official money exchangers.
• Health and Hygiene: Drink bottled water, avoid street food unless it looks freshly cooked, and carry hand sanitizer.
• Police Assistance: In case of emergency, contact tourist police. Some officers speak English and are trained to assist foreigners.

Despite minor risks, many expats and tourists live and travel comfortably in Phnom Penh. Following common-sense safety precautions ensures a smooth visit.

Also read: Why Phnom Penh Urgently Needs Its Own MRT System?

Why You Should Visit Phnom Penh?

Despite being one of the most expensive cities in ASEAN, Phnom Penh continues to attract thousands of visitors each month for several compelling reasons:

1. Rich Cultural Heritage

From Angkorian history to French colonial architecture and Buddhist spirituality, Phnom Penh offers a deep cultural experience.

2. Vibrant Local Life

Whether it’s sunrise at Wat Phnom or bustling nightlife at Bassac Lane, Phnom Penh pulses with life and character.

3. Affordable Luxury

Compared to Western standards, Phnom Penh offers luxury on a budget — 4-star hotels at $60 per night, massages for $10, and gourmet meals for under $20.

4. Booming Café and Art Scene

Cambodia’s young generation is fueling a creative wave. Phnom Penh is now home to dozens of stylish cafés, art galleries, and boutique studios.

5. Great Base for Exploring Cambodia

Phnom Penh is centrally located, making it an ideal launching pad to visit Angkor Wat, coastal towns, and national parks.

The Expat and Digital Nomad Life

Phnom Penh is increasingly a destination for expats, digital nomads, and remote workers. With a relatively low cost of living (for foreigners), vibrant community, and growing infrastructure, the city offers:

• Co-working spaces like The Desk and Workspace 1
• Affordable rent and utilities
• Access to gyms, pools, international schools, and healthcare
• Visa flexibility (30-day tourist visas and business visa extensions)

English is widely spoken in central districts, and many foreigners find the local population friendly and eager to engage.

Economic Growth and the Real Estate Boom

The city’s rapid rise in cost of living is partly due to its economic transformation:

• Infrastructure projects like new expressways, airport, and city expansion zones
• Real estate investments by Chinese, Korean, and Japanese companies
• Construction of luxury condos, shopping malls, and entertainment hubs

Phnom Penh’s real estate market is among the fastest-growing in ASEAN, but also contributes to gentrification and housing unaffordability for lower-income locals.

A City of Opportunity and Contrast

Phnom Penh’s status as the fourth most expensive city in ASEAN paints a picture of growth and ambition, but also rising inequality and cost pressures. For tourists and foreign workers, the city offers excitement, convenience, and modern lifestyle options at competitive prices. For locals, the balance between income and expenses is more delicate.

Phnom Penh remains a city of opportunity — for business, for travel, for cultural exploration — but also a city that must manage its growth wisely.

Have you visited Phnom Penh recently? What was your experience with the cost of living and lifestyle? Share your thoughts in the comments below.