Digital Payments Boost Cambodia's Tourism Industry

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In a notable development aimed at enhancing the travel experience for foreign visitors, the National Bank of Cambodia has launched a new application specifically designed for tourists called the Bakong Tourist AppThis innovative app allows travelers from abroad to seamlessly utilize the nation's QR code payment system at over three million retail merchants across CambodiaThe initiative is part of a broader strategy directed by Prime Minister Hun Manet to revolutionize the way tourists pay for goods and services while in the country.

As the world becomes increasingly digital, the move to introduce the Bakong Tourist App signifies a shift towards cashless transactions in CambodiaThe app is anticipated to be a game-changer for those visiting the country, providing a more efficient and convenient payment service, particularly helpful in mitigating issues often faced by travelers, such as rejected or worn-out US dollar bills

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By facilitating easier transactions for international tourists, this initiative aims to foster further growth in Cambodia's tourism sector.

Tourists arriving in Cambodia can now easily download the Bakong Tourist App onto their mobile devicesUpon registration, they can top up their accounts using automated teller machines (ATMs) located at airports or through various bank branches around the countryThis process not only eliminates the hassle of currency exchange but also promotes a simplified consumer experience, making it easier for tourists to engage with local businesses without worrying about cash in hand.

The introduction of the Bakong Tourist App represents a significant achievement for the National Bank of Cambodia in their commitment to advancing cashless payment optionsAccording to the bank's governor, Chea Chanto, this new solution not only provides international visitors with a user-friendly QR code payment option but also serves as an incentive for the use of the Cambodian riel, the nation's currency

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Currently, there are more than 3.3 million merchants across Cambodia accepting QR code payments, alongside approximately 150,000 point-of-sale systems that cater to credit card transactionsSoon, the Bakong Tourist App is set to directly connect to foreign users' credit cards, further simplifying the payment process.

The tourism sector in Cambodia has warmly welcomed this newly designed app tailored for international travelersThe president of the Pacific Asia Travel Association's Cambodia chapter expressed enthusiasm, stating that the Bakong Tourist App marks an important advancement in enhancing the travel experience for foreigners visiting CambodiaThe QR code payment system not only eases shopping for tourists but also encourages them to utilize local digital currencies, which plays a critical role in facilitating the digital transformation and comprehensive recovery of Cambodia's tourism industry.

According to a report from Cambodia's Ministry of Tourism, the influx of foreign visitors has surged in the first half of this year, with 3.16 million international tourists entering the country, representing a nearly 23% increase compared to the same period last year

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Notably, the number of Chinese tourists visiting Cambodia reached 390,000, up 45% year-on-year, illustrating the nation's rising appeal as a travel destination.

Statistics from the Angkor Archaeological Park management agency highlight the ongoing recovery of Cambodia's tourism sectorIn the first seven months of 2024, the iconic site welcomed over 580,000 foreign visitors, a 33% increase compared to last year, with ticket revenue also increasing by 33.8%. Chinese tourists accounted for a notable portion of this resurgence, making up 7.5% of all foreign visitors to the Angkor site, further demonstrating the strengthening ties and interest between Cambodia and its largest tourist market.

The tourism industry in Cambodia is often referred to as a vital pillar of economic support, sometimes dubbed the "green gold" that fuels significant economic recoveryBack in 2019, the country attracted over 6.6 million foreign tourists, generating nearly 5 billion dollars in tourism revenue, which contributed approximately 12% to Cambodia's GDP and supported over 600,000 jobs

With the current trajectory and improvements in the domestic and regional economy, the Ministry of Tourism projects that Cambodia's tourism sector could return to pre-pandemic levels by 2025.

The Bakong payment system was officially launched by the National Bank of Cambodia in October 2020 with a vision to promote the use of the Cambodian currency while also enhancing the accessibility of electronic paymentsRecent data indicates that by the end of June this year, the Bakong payment system had expanded to include 72 participating institutions, facilitating over 220 million transactionsTransactions based on the Cambodian riel amounted to nearly 98.05 million, while those in US dollars totaled more than 120 million, demonstrating the system's efficiency and its role in fostering financial innovation.

By integrating a dedicated QR code payment application for international visitors, the National Bank of Cambodia aims to elevate not only the growth of its tourism industry but also further its ambitions for economic digital transformation

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