Credit Bureau Cambodia (CBC) and Cambodia Tourism Association (CATA) joined hands to organize a workshop in Siem Reap on 27 March 2024 to broaden the understanding of credit reporting, financial health tools and credit assessment knowledge to boost access to credit for tourism SMEs to finance their growth.
Credit plays a very important role in supporting businesses in tourism sector to accelerate growth and recovery in the post-pandemic slowdown. In the context of the announcement of $50 million loan package from the government to tourism SMEs in Siem Reap, this workshop is aimed at directly enabling the businesses to be better prepared for getting loans. Around 100 tourism SMEs from Siem Reap joined this workshop.
Mr. Ngov Sengkak, Deputy Governor of Siem Reap Province, in his special remarks at the workshop highlighted the need for tourism SME owners to understand and prepare for getting credit to make responsible and sustainable investments. He further emphasized that as tourism is an important driver of our economic growth, closer collaboration with CBC and banks can help the sector drive growth.
Credit reporting plays a fundamental role in enabling access to credit and financial inclusion. When an individual or business applies for a loan, every lender checks their credit history from Credit Bureau Cambodia. CBC’s services help individuals and businesses access loan by providing critical information on their credit profile which helps lenders to conduct their assessment to make loan decisions fasters and more accurate.
Mr. Oeur Sothearoath, CEO of Credit Bureau Cambodia mentioned, “Data from CBC indicates that as of Feb 2024, $2.68 billion loans were held in the tourism sector across the country with 12.68% of tourism sector loans given to borrowers in Siem Reap province. If we look at the broader credit landscape in Siem Reap, we can see credit has played an important role in supporting local business as small business loan balance has grown by 52% in the last 5 years since 2019 and currently occupies 73.35% of overall loan balance in Siem Reap. Hence, CBC is committed to broaden the understanding of credit reporting for improved access to credit for SMEs in tourism sector which is the backbone of our country.”
Cambodia Tourism Association (CATA) plays an important role in supporting their member businesses to expand knowledge, exposure and networking for strengthening their business and financial performance. Before the pandemic, tourism contributed to 18.2% of the national GDP in 2019. In the post-pandemic period, this workshop will play an important in preparing CATA’s member SMEs for accessing loans for financing their growth.
Lok Chumteav Chhay Sivlin, President of Cambodia Tourism Association stated, “We organized this workshop to provide a platform for our member SMEs to deepen their understanding on credit reporting and how it impacts our members’ access to loans. Tourism plays a necessary role in revitalizing the economic growth of Siem Reap as well as the country. We need to foster our collaboration with the financial sector, business community, associations and the government to create a stronger synergy to achieve inclusive growth in tourism in alignment with government policies.”
During the event, participating SMEs also had a chance to try CBC mobile app and check their free credit report. It is the right of every individual and business to check their credit report without any cost once per year. Since every lender checks a loan applicant’s credit report before making decision, it is important that everyone checks their own credit report few times a year.
During the workshop, local entrepreneurs and business leaders shared their views on tourism business situation and challenges they face while applying for loans. Senior executives from SME Bank of Cambodia and Sathapana Bank also joined to provide insights on helping SMEs to give tips and suggestions for helping SMEs in their financing journey.
About Credit Bureau Cambodia
CBC is the leading provider of financial information, analytical solutions, and credit reporting services to financial institutions and consumers in the Kingdom of Cambodia. Since 2012, CBC has been assisting customers in managing the risks and rewards of commercial and financial decisions through a range of solutions: Consumer Credit Report, Commercial Credit Report, K-Score, Data Analytics Report, Credit Risk Heat Map, Portfolio Monitoring services, Portfolio Review services, and Customized Solutions. CBC serves a member base of more than 194 financial institutions, including Commercial Banks, Specialized Banks, Microfinance Deposit Taking Institutions, Micro-Finance Institutions, Leasing Companies, and Rural Credit Institutions.
About Cambodia Tourism Association
Cambodia Tourism Association serves as the single voice of Cambodia Tourism Agents and respective Tourism Industry Associations. It plays a role as a critical catalyst in building globally competitive tourism businesses and in strengthening local tourism and affiliated tourism associations.