Credit Reporting Knowledge Boosts Cambodian Tourism SME Growth
The Credit Bureau Cambodia (CBC) and Cambodia Tourism Association (CATA) held a mutually beneficial workshop in Siem Reap to broaden the understanding of credit reporting, financial health tools and credit assessment knowledge to boost access to credit for tourism SMEs.
The Cambodian government previously announced a USD $50 million loan package to tourism SMEs (small and medium-sized enterprises) in Siem Reap, so the workshop held on 27th March 2024 was set up to enable the businesses to be better prepared for obtaining these loans.
Mr. Oeur Sothearoath, CEO of Credit Bureau Cambodia added, “Data from CBC indicates that as of February 2024, USD $2.68 billion loans were held in the tourism sector across the country with 12.68 per cent of tourism sector loans given to borrowers in Siem Reap province."
Pre-pandemic, tourism contributed to 18.2 per cent of the national GDP in 2019 so with approximately 100 tourism SMEs from Siem Reap attending the CBC workshop, Mr Ngov Sengkak, Deputy Governor of Siem Reap Province, highlighted the need for tourism SME owners to understand and prepare for getting credit to make responsible and sustainable investments. He also emphasised that tourism is an important driver of our economic growth (widely regarded as one of the economic pillars of the nation), and that closer collaboration with CBC and banks can help drive growth in the sector.
Credit Reporting In Cambodia
Credit reporting plays a fundamental role in enabling access to credit and financial inclusion. Mr. Oeur Sothearoath expanded on this; "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 per cent in the last 5 years since 2019 and currently occupies 73.35 per cent of the overall loan balance in Siem Reap. Hence, CBC is committed to broadening the understanding of credit reporting for improved access to credit for SMEs in the tourism sector which is the backbone of our country.”
When any individual or business applies for a loan in Cambodia, every lender checks their credit history from Credit Bureau Cambodia. Thus, CBC’s services help individuals and businesses access loans by providing critical information on their credit profiles which helps lenders to conduct their assessment to make loan decisions faster and more accurate.
Lok Chumteav Chhay Sivlin, President of the Cambodia Tourism Association stated, “We organised this workshop to provide a platform for our member SMEs to deepen their understanding of credit reporting and how it impacts our members’ access to loans...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.”
Participants in Siem Reap also tried the CBC mobile app and an opportunity to review their free credit report - the CBC reminds all individuals and businesses to check their credit report without any cost once per year.
As all lenders check a loan applicant’s credit report before making a decision, it is advised everyone check their credit report.