Officials: an initiative to co-finance tourism rehabilitation will be crucial in growing tourism

According to officials, the co-financing initiative of the Royal Government, when paired with a credit guarantee program for tourism firms, will be a crucial financial tool for boosting the tourism industry.

The benefits of the Royal Government's co-financing project in supporting projects to restore and promote tourist growth were emphasized by Song Tong Hap, Secretary of State and Chairman of the Sub-Working Group on Support for Enterprise and Employment in the Tourism Sector.

By enabling businesses in the sector to apply for loans from financial institutions in the amount of a minimum amount of up to $400,000 at an annual concessional interest rate of 6.5 percent, with or without collateral to secure the loan, the project, which was implemented in May of this year, has been playing a significant role in continuing to promote the recovery of Cambodia's tourism sector.

It should be highlighted, according to Tong Hap, that one of the financial tools to support a quick recovery of the tourism sector will be the government's co-financing project coupled with the credit guarantee program. The Ministry of Tourism anticipates 7 million foreign tourists and 11 million domestic immigrants in Cambodia by 2025. This recovery is in line with their projections.

The President of the Cambodian Association of Travel Agents, Chay Sivlin, said that the start of the co-financing project will assist alleviate the issues encountered by the tourist sector owing to Covid-19.

As of May 31, there are 1,196 tourism business bases countrywide that have been closed or ceased activity, comprising local 498 tourism firms closed and 698 locations temporarily suspended, resulting in the loss of a total of 21,998 direct jobs in the tourism sector.

Source: Compass Cambodia comprehensive arrangement

Compass global site: Cambodia | Singapore | UAE | Thailand | Philippines | Myanmar | Laos