In Cambodian casino town, Chinese bet on future after coronavirus

In Cambodian casino town, Chinese bet on future after coronavirus

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When casino owner Kang Qiang (pictured below) looks out the window of his 20th floor office in this city on the remote Cambodian coast, he sees construction cranes sitting idle.

The Chinese-funded gambling enclave of Sihanoukville has suffered a double blow. Travel restrictions imposed in recent weeks to slow the global coronavirus pandemic have deepened the effects of a ban last year on lucrative online gambling.

. Sihanoukville, Cambodia. Reuters/Jorge Silva
Kang Qiang sits in his office at his casino Dong Yuan in 2020.

But Kang is betting on a future beyond the pandemic, banking on the return of money from China to finish transforming the scrappy frontier town into a gleaming metropolis.

In a sign of his confidence, Kang's casino has installed gold urinals.

. Sihanoukville, Cambodia. Reuters/Jorge Silva
Golden urinals stand inside Chinese businessman Kang Quiang's casino in 2020.

"This city is just starting, there is a lot of potential," says Kang, 60. "I love it. Sihanoukville gives you a feeling of freedom and no control."

For Kang and others, the city is like the China of several decades ago - with all of the promise and none of the competition. The current idle is only a blip.

"China is huge, there will always be people interested in Sihanoukville," says Yin Hongsi, a 30-year-old from Chengdu who hires workers for one of the casinos. "You don't need to worry if the Chinese will come back."

The boom town on the Cambodian coast has a deep water port and is part of China's Belt and Road initiative. In the next three years, Sihanoukville will also host both the Southeast Asian Games and a meeting of regional leaders.

Before & After

Before
. Sihanoukville, Cambodia. Reuters/Jorge Silva
After
. Sihanoukville, Cambodia. Reuters/Jorge Silva

Before: A Cambodian worker stands on a construction site in Chinatown in 2019.
After: The same location in 2020.

As Chinese money has swept across Southeast Asia, Cambodia has become one of the most visible examples of the investment, with authoritarian Prime Minister Hun Sen doing all he can to strengthen ties to Beijing.

In Sihanoukville, most of the money has been private, and the biggest share has gone into some 70 casinos - all of which are being ordered to shut from April 1 as a temporary measure to help slow the spread of coronavirus.

. Sihanoukville, Cambodia. Reuters/Jorge Silva
People gather around gambling tables in the casino area of the Nanhai Pearl Casino Hotel in 2019.

The casinos have reshaped the city's landscape so frequently that locals struggle to recognize it.

The contrasts can be jarring.

Inside casinos, wads of U.S. hundred-dollar bills pile up in batches of $10,000 beside white marble ashtrays.

. Sihanoukville, Cambodia. Reuters/Jorge Silva
Children of Cambodian construction workers play in front of their temporary housing near a construction site in Chinatown in 2019.

Outside, streets are coated in fine orange dust and pedestrians cross rivulets of sewage on scraps of plywood. It's a disconnect familiar to anyone who lives on China's margins.

"China speed", exclaims Gavin Gao, a gleeful young Chinese tech entrepreneur from Chengdu who has chosen to stick things out.

"Sihanoukville is going at China speed ... Here is China 2.0!"

. Sihanoukville, Cambodia. Reuters/Jorge Silva
Makeshift tents where Cambodian construction workers live, stand in front of a construction site in 2019.

Cambodians have mixed feelings about the Chinese. Their arrival brought money and jobs - and now their sudden absence is causing problems.

"People used to say 'Sihanoukville is the best'. There are lots of Chinese and lots of money,'" says Siv Tia, a 69-year-old who makes a few dollars a day selling drinks in the market. "Now they say 'everyone in Sihanoukville has a big bank loan'".

The collapse of a half-built Chinese-owned building last year, killing dozens, fuelled resentment in the town. So did the constant noise of construction, rising crime and rubbish piled in the streets.

Before & After

Before
. Sihanoukville, Cambodia. Reuters/Jorge Silva
After
. Sihanoukville, Cambodia. Reuters/Jorge Silva

Before: A group of Chinese men enjoy an afternoon on Ochheuteal beach in 2019.
After: The same beach is empty in the afternoon in 2020.

"The growth was just phenomenal, too fast!" says Transport Minister Sun Chanthol. "Now things are slowing down so it's a good opportunity for us to catch up."

The expatriates' confidence is buoyed by China's apparent success in fighting the coronavirus pandemic. As cases skyrocket elsewhere in the world, zero local transmissions have been reported on some days in China, where the virus originated.

"They got it under control," says Bob Zhao, an earnest 28-year-old from Shandong who came to Sihanoukville seeking his fortune and found it as a sales consultant for a Chinese property developer.

"In China there are so many competitors. They've been to good schools, have good social experience. They are better than you. And the pay is low," he says. "The opportunity here is better."

. Sihanoukville, Cambodia. Reuters/Jorge Silva
The Chinese owned Xihu resort Hotel stands in 2020.

Zhao sits in a window-lined atrium of a half a billion-dollar hotel, casino and apartment complex on the beachfront. It broke ground last August, just as the online gambling ban was announced, and has seen a sharp slowdown in sales because of the coronavirus, but is still on track to open in two years.

Zhao ticks off reasons Cambodia is appealing: it's a U.S. dollar economy, Hun Sen is close to China and is a longtime, stable autocrat.

"Our money is safe," he says.

Before & After

Before
. Sihanoukville, Cambodia. Reuters/Jorge Silva
After
. Sihanoukville, Cambodia. Reuters/Jorge Silva

Before: Construction workers move cement blocks in Chinatown in 2019.
After: New buildings stand in the same location in 2020.

Casino manager Yin has been making "at least double" what he would in China by working in Sihanoukville, but he acknowledges the flood of Chinese money has led to surging prices and the growing piles of rubbish.

Still, he says the Chinese money has sparked the economy in what he sees as a forgotten country.

"It seems like other countries are not interested in Cambodia, like America and Europe," he says. "China is interested."

Kang, the casino owner, is from Guangzhou, one of China's biggest and most-developed cities. But he is convinced his future is on the dusty streets of Sihanoukville despite his casino losing money since November.

"Persistence means victory," he says.

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Slideshow

Chinese men walk past a construction site in Chinatown near Otres beach in 2019.
. Sihanoukville, Cambodia. Reuters/Jorge Silva

Chinese men walk past a construction site in Chinatown near Otres beach in 2019.

A man buys an ice cream in 2019.
. Sihanoukville, Cambodia. Reuters/Jorge Silva

A man buys an ice cream in 2019.

A group of Chinese men stand on Ochheuteal beach in 2019.
. Sihanoukville, Cambodia. Reuters/Jorge Silva

A group of Chinese men stand on Ochheuteal beach in 2019.

A man receives a massage whilst having a meal with friends at Ochheuteal beach in 2019.
. Sihanoukville, Cambodia. Reuters/Jorge Silva

A man receives a massage whilst having a meal with friends at Ochheuteal beach in 2019.

A Cambodian construction worker poses for a photo in 2019.
. Sihanoukville, Cambodia. Reuters/Jorge Silva

A Cambodian construction worker poses for a photo in 2019.

Clothes and sausages are hung out to dry at a makeshift camp for Cambodian workers at a construction site in 2019.
. Sihanoukville, Cambodia. Reuters/Jorge Silva

Clothes and sausages are hung out to dry at a makeshift camp for Cambodian workers at a construction site in 2019.

Casino workers visit a beauty salon inside Phsar Leu Market in 2019.
. Sihanoukville, Cambodia. Reuters/Jorge Silva

Casino workers visit a beauty salon inside Phsar Leu Market in 2019.

A man stands in front of a karaoke bar in 2019.
. Sihanoukville, Cambodia. Reuters/Jorge Silva

A man stands in front of a karaoke bar in 2019.

Chinese guests sit around a gambling table during the opening night of DV Casino in 2019.
. Sihanoukville, Cambodia. Reuters/Jorge Silva

Chinese guests sit around a gambling table during the opening night of DV Casino in 2019.

Casino workers wait for transportation organised by the casino where they work, to take them back home after finishing work for the day in 2019.
. Sihanoukville, Cambodia. Reuters/Jorge Silva

Casino workers wait for transportation organised by the casino where they work, to take them back home after finishing work for the day in 2019.

A woman rides on the back of a motorbike in 2019.
. Sihanoukville, Cambodia. Reuters/Jorge Silva

A woman rides on the back of a motorbike in 2019.

Traffic passes through Golden Lions roundabout in 2019.
. Sihanoukville, Cambodia. Reuters/Jorge Silva

Traffic passes through Golden Lions roundabout in 2019.

A ladder stands in the lounge area of the nightclub The Coffee Club in 2020.
. Sihanoukville, Cambodia. Reuters/Jorge Silva

A ladder stands in the lounge area of the nightclub The Coffee Club in 2020.

A swing hangs on Otres beach opposite the closed down and demolished bar 'Last Hippie Standing' in 2020.
. Sihanoukville, Cambodia. Reuters/Jorge Silva

A swing hangs on Otres beach opposite the closed down and demolished bar 'Last Hippie Standing' in 2020.

A climbing frame for children stands in a swimming pool at the Chinese owned Xihu Resort Hotel in 2020.
. Sihanoukville, Cambodia. Reuters/Jorge Silva

A climbing frame for children stands in a swimming pool at the Chinese owned Xihu Resort Hotel in 2020.

A hotel worker places an inflatable unicorn toy into a swimming pool on the rooftop of the La Vogue Boutique Hotel & Casino in 2020.
. Sihanoukville, Cambodia. Reuters/Jorge Silva

A hotel worker places an inflatable unicorn toy into a swimming pool on the rooftop of the La Vogue Boutique Hotel & Casino in 2020.

A Chinese man with a tattoo on his back of Guan Yu, a warrior, uses his mobile phone on a private beach at the Chinese owned Xihu Resort Hotel in 2020.
. Sihanoukville, Cambodia. Reuters/Jorge Silva

A Chinese man with a tattoo on his back of Guan Yu, a warrior, uses his mobile phone on a private beach at the Chinese owned Xihu Resort Hotel in 2020.

Sun-beds stand on a private beach at the Chinese owned Xihu Resort Hotel in 2020.
. Sihanoukville, Cambodia. Reuters/Jorge Silva

Sun-beds stand on a private beach at the Chinese owned Xihu Resort Hotel in 2020.

A man speaks on his phone on the rooftop of Chinese businessman Kang Quiang's casino Dong Yuan in 2020.
. Sihanoukville, Cambodia. Reuters/Jorge Silva

A man speaks on his phone on the rooftop of Chinese businessman Kang Quiang's casino Dong Yuan in 2020.