Tourism in India: The role of MFIs in India’s tourism
Keywords:
Tourism, Microfinance, developing countriesAbstract
The present study tries to identify the role of micro finance in the changing tourism development scenario as it is one of the option for the inclusive growth. Many developing countries consider promoting tourism as a main strategy for achieving economic growth. The tourism sector is mainly organized through micro and small-scale enterprises. In developing countries due to lack of access to credit and other finance, do not consider them as clients and government support is only aimed at attracting foreign direct investments (FDI), and not oriented towards expansion of domestic business in tourism. Financial sector modernization in some developing countries has been pushed in recent years through Microfinance Institutions (MFIs). They deliver credit to micro and small enterprises and contribute to poverty reduction by providing poor people to access financial services. Micro Finance Institutions have an ability to create a positive impact on the development of tourism industry, particularly in emerging countries. Over the years, micro-finance as well as tourism sectors have been promoted independently. Till now, in tourism destinations, these MFIs are unable to close finance gap in supply and demand for finance.
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