PHNOM PENH: Almost 1,200 businesses closed down and 22,000 tourism related jobs were lost as of May this year due to the Covid-19 pandemic in Cambodia.
The Cambodian Ministry of Tourism said that about 500 businesses closed down while almost 700 suspended their operations, resulting in many losing their jobs as the pandemic bit hard into the tourism sector.
Chhun Makara, director of travel agency, transport and tourism guide department at the tourism ministry, told Khmer Times that 14 tourism and hospitality services have permanently closed while the suspended establishments include hotels, guesthouses, restaurants and travel agencies.
He said that the owners of suspended tourism establishments were concerned about the collateral requirement for loans to restart their operations.
"Currently, we face challenges including labour shortage and lower tourism skills. Seeking strategies to attract former workers to return is among the top priorities for recovery in the tourism sector," Makara said.
Tourism establishments, especially hotels and guesthouses have been contacting and calling their former employees to return to work and authorities are expected to roll out various strategies to attract former employees.
"But the priority now is to attract more tourists because more guests can create good jobs in the establishments and then hopefully, former employees will come back to work," he said.
Song Tong Hap, secretary of state at the tourism ministry, said tourism establishments can apply for loans with financial institutions that participate in the credit guaranteed scheme launched by the government in September last year.
With the state-owned Credit Guarantee Corporation of Cambodia (CGCC) as guarantor, businesses may be able to get loans up to US$400,000 at a concessional interest rate of 6.5 per cent.
"This scheme will help tourism establishments that look for loans from participating financial institutions for recovery without collateral," Tong Hab said.
Tong Hab, who is also the head of the enterprise and employment protection working group at the tourism ministry, said financing with collateral is expected to support Cambodia in attracting seven million international tourists in 2025 and 11 million local tourists next year.
CGCC deputy Chief Executive Officer No Lida said tourism business owners in Cambodia needed to fulfill three main requirements to get approval for loans - Cambodian nationals with more than 50 per cent of shares, businesses registered legally and the ability to make repayment.
Tourism minister Thong Khon said Cambodia's tourism had been severely affected by Covid-19 over the last two years with Cambodia receiving only 1.5 million international tourists.
"Even though Cambodia's tourism has continued to recover gradually, the ministry has noticed that the number of establishments in the industry grew slowly," he said.
Meanwhile, in tourists' popular Sihanoukville, vendors will no longer be allowed to conduct business on its beaches and seaside promenades from July 7.
In Siem Reap, the municipal authority has given residents 15 days to dismantle their structures from eight road sidewalks in the city.
The two authorities warned that action will be taken to confiscate business items and equipment while structures will be demolished if the directives are not followed.
Sihanoukville authorities said the beach is for public use and was not a venue for eateries.
Kheang Phearum, Sihanoukville Provincial Hall spokesman, told Khmer Times those vendors were a blight on the landscape and they wanted the beach area to be a tidy environment and look pristine.
Siem Reap provincial authorities have also warned that legal action will be taken if the structures are not removed.
Siem Reap Governor Tea Seiha said the move was to facilitate the building and widening of roads as they wanted to improve the area with better roads while improving the a
Siem Reap Governor Tea Seiha said the move was to facilitate the building and widening of roads as they wanted to improve the area with better roads while improving the aesthetic value of the city.
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