The Cambodian National Bank has taken a bold step in enhancing the financial landscape for foreign visitors by launching the Bakong Tourist ApplicationThis innovative platform leverages the existing QR code payment system in Cambodia, allowing tourists to make purchases effortlessly at over three million retail merchants across the countryIt's an initiative aimed not just at convenience, but at transforming how visitors interact with the local economy.

Prime Minister Hun Manet's directive set the stage for this initiative, reflecting a commitment to streamline payment methods for international tourists arriving in CambodiaThe application seeks to deliver a seamless experience by addressing common challenges faced by visitors, such as the rejection of damaged or outdated U.Sdollar bills, thereby invigorating the Cambodian tourism sectorThe government aims to provide a modern, digital payments experience while simultaneously facilitating smoother transactions within the local economy.

Travelers arriving in Cambodia can now download the Bakong Tourist Application to their smartphones and register as users immediately

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They can recharge their accounts via airport ATMs or any bank branch, allowing them to make QR code payments nationwideThis eliminates the cumbersome process of exchanging money and dealing with foreign currency, fundamentally shifting how tourists engage with their surroundings.

According to the National Bank, the Bakong application is a significant stride towards the goal of cashless paymentsChea Serey, the Bank's governor, emphasized that this application not only offers a new method for tourists to handle payments but also promotes the use of the Cambodian riel, the nation’s official currencyWith over 3.3 million merchants accepting QR payments and around 150,000 POS systems in operation that accept credit card transactions, the app enhances convenience for tourists while fostering a greater acceptance of local currency in daily transactionsIt is also anticipated that in the near future, the app will allow foreign users to link their credit cards directly for additional ease of use.

The tourism sector has embraced this initiative wholeheartedly

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The head of the Pacific Asia Travel Association’s Cambodia chapter lauded the launch of the Bakong Tourist Application as a pivotal development in refining the travel experience for international guestsThe transition to QR code payments not only simplifies shopping but also encourages tourists to transact in local currency, thereby boosting the digital transformation of Cambodia's tourism industry.

Recent reports from the Cambodian Ministry of Tourism indicate a substantial rebound in the number of foreign visitorsFactors such as a reviving economy, improved infrastructure connectivity, a rise in international flight availability, and growing popularity as a travel destination contributed to a dramatic increase in tourist numbersIn the first half of this year, Cambodia welcomed 3.16 million foreign visitors, a remarkable 23% increase compared to the same period last year, with nearly 390,000 of those being Chinese travelers, marking a 45% rise.

The Angkor Archaeological Park, which is overseen by the Cambodian authority for heritage protection, has reported an impressive 33% increase in visitors in the first seven months of 2024, totaling over 580,000. Ticket sales also soared, reflecting a 33.8% increase, with Chinese tourists alone accounting for 7.5% of foreign visitors to the park

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This surge illustrates that Cambodia's tourism industry is not only recovering but accelerating in its revival.

Tourism is a vital component of Cambodia's economy, often referred to as "green gold," playing a crucial role in the country's recovery efforts post-pandemicIn 2019, Cambodia recorded over 6.6 million international arrivals, generating nearly $5 billion in revenue for the tourism sector, which contributed 12% to the national GDP and created over 600,000 jobsThe Ministry of Tourism has projected that by 2025, the tourism sector in Cambodia will fully recover to pre-pandemic levels as momentum builds.

In October 2020, the Cambodian National Bank launched the Bakong payment system to facilitate the use of local currency and to encourage electronic payment adoption while enhancing interconnectivity among financial institutionsAs of June this year, the Bakong payment system has seen its membership grow to 72 institutions, having processed over 220 million transactions

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Transactions based on the Cambodian riel have hit nearly 98.05 million, translating to a total transaction value of 77 trillion riel, while dollar-based transactions exceeded 120 million, amounting to $463.3 billionThis system not only enhances payment efficiency and reduces transaction costs but also introduces financial innovations, providing consumers and international clients with increased convenience.

The Bakong Tourist Application represents a significant step forward in Cambodia's ongoing efforts to usher in a new era of digital payments, particularly in the tourism sectorAs it aligns with the broader goals of promoting local currency and facilitating tourist transactions, this initiative could prove to be a game-changer for Cambodia's travel industry, offering a modern, efficient payment solution that reflects the needs and preferences of global travelersThe integration of technology into the travel experience signifies not only a shift in operational procedures but frames a broader narrative of adaptation and recovery in a post-pandemic world.