SME Bank of Cambodia Contemplates $50M Budget Support for Siem Reap Tourism
The Small and Medium Enterprise Bank of Cambodia Plc (SME Bank) is contemplating a $50 million budget support plan to aid the pandemic-stricken tourism industry in Siem Reap province. The initiative, designed to bolster the tourism sector, contemplates extending loans to cruise boat operators active on the Tonle Sap River. The move could prove instrumental in reviving tourism in the region and beyond.
A Boost to Cruise Tourism
Chhay Sivlin, the president of the Cambodia Tourism Association (CATA), underscored the potential of the cruise boat community to redefine the tourism landscape in Cambodia. The Tonle Sap River, connecting multiple provinces, offers a unique blend of experiences to visitors, making it a key attraction. Sivlin encouraged financial institutions to recognize this potential and support the development of quality services for tourists.
Government Efforts to Revive Tourism
The proposed $50 million forms part of a larger government strategy to resuscitate the tourism sector. A more considerable $150 million budget was approved in May 2023, but only 30% of it has been utilized due to strict bank lending policies. Sivlin urged a more flexible approach to lending, keeping in mind the financial hardships businesses are grappling with in the wake of the COVID-19 crisis.
Favourable Loan Terms
Lim Aun, CEO of the SME Bank, highlighted that the loan project offers favourable terms for Siem Reap’s tourism enterprises. These include a low-interest rate and a two-year grace period. The bank’s initiative comes at a crucial time when tourism-dependent businesses are trying to bounce back from the pandemic’s damaging effects. The strategy echoes the government’s broader mission to revive tourism, a vital component of Cambodia’s economy.