Construction of a $20 million luxury residential project on an expansive beach on Cambodia’s largest island will be completed by the end of next year, officials and executives said on Saturday at the groundbreaking ceremony for Royal Sands Koh Rong.


The project in Preah Sihanouk province is a joint venture between Cambodian conglomerate Royal Group, owned by media and telecom tycoon Kith Meng, and Luzi Matzig, CEO of travel group Asian Trails.


Royal Sands Koh Rong will have more than 60 houses and villas when it is completed at the end of next year. Koh Rong, also known as Monkey Island, is about 25 kilometers from Sihanoukville. The island has 43 kilometers of pristine beaches, which stretch along its eastern and western shores.


Mr. Matzig said during the groundbreaking ceremony that he had visited the island several times before selecting the Royal Group as his development partner. The project aims to be one of the most attractive in Asia, Mr. Matzig said.  


“It is our aim to provide top accommodations in a relaxed and beautiful natural environment. All our villas, except for the presidential villa, will be single [floor] style. We don’t want any high-rise buildings on this most beautiful beach. And we hope there will not be any high-rise buildings in the future,” he said.


 “As you see right now, there is only empty land, but in a year from now we will have 67 beautiful villas standing to welcome local and foreign tourists,” Mr. Matzig added.


He said he had been visiting the area for almost two years. Beaches near Sihanoukville town are not suitable because they have too many vendors and shops, and are polluted, he added, explaining that after visiting, Koh Rong he was completely enchanted with the six kilometer beach Royal Sands Koh Rong will occupy.


“After that initial visit, I decided that this was one of the most beautiful spots in Asia to build a nice resort,” Mr. Matzig said. “Later on, we succeeded in forming a joint venture with Neak Oknha Kith Meng of Royal Group as a partner in this project.”


Royal Sands Koh Rong will allow tourism operators in Cambodia to expand destinations beyond Phnom Penh and Angkor Wat. Tourists will not have to go to Vietnam and Thailand for beach holidays but can remain in Cambodia, he said.


Ho Vandy, president of travel agency World Express Tour welcomed the new development but said that since the government began granting concessions to private companies to develop 20 islands seven years ago very little had happened.


“Concessions have been granted for more than 20 islands since 2008, but few developments are in progress or active,” Mr. Vandy said. “I hope this [new project] will draw more tourists, conserve nature with benefit local people and society, and be as successful as the Song Saa project,” he added, referring to a high-profile luxury resort off the coast of Sihanoukville.


Mr. Vandy also said that the environment around Koh Rong was being under threat. “I wish to call on all concerned authorities to address this issue,” he said, adding that environmental degradation will result in a shortage of tourism attractions and developments in the area.  


Tourism Minister Thong Khon said during the opening of three-day sea festival on Saturday in Kampot that Cambodia’s beaches had attracted nearly a half million tourists over the first nine months of the year, a rise of more than 15 per cent.