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December 16 , 2008

Opportunities and Challenges of Tourism Financing


The study examines the tourism and tourism financing in triangular form. The first is the impact of tourism and tourism financing on the economic growth and development of the country. The second is the response of the Tourism Business Enterprises (demand side) about the pattern and effectiveness of tourism financing and the third one is the views of the Banks and Financial Institutions (supply side). It uses both primary and secondary data and applies various mathematical and statistical tools such as ratio analysis, correlation coefficient, Phi-coefficient, Chi-square test, t-Test for two sample means and regression analysis (OLS). It found a significant impact of tourism and tourism financing in the economic development of the country. Added to this, it found a significant variation in the structure of financing among various types of business (accommodation, travel, adventure and other business) and ownership forms of businesses (proprietorship firm, partnership firm, private limited and Public limited) based on the common size statements. It incorporated the magnitude of tourism financing, structure, pattern and the indicators of financing as well as the effectiveness of tourism financing.
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