Building Economic Sustainability through Tourism Project

The sector employs approximately 120,000 people, with the majority working in the hospitality industry. However, the sector faces challenges, including high interest rates on loans, limited access to credit facilities, and a lack of technical skills among tourism entrepreneurs. The Jordanian microfinance sector has a long history, dating back to 1993, with Tanmeyah being one of the largest microfinance institutions (MFIs) in the country. Tanmeyah has a membership of over 100,000 clients and has disbursed over $1.5 billion in loans since its inception. The MFI offers a range of financial products, including loans, savings accounts, and insurance services. However, the sector faces several challenges, including high interest rates on loans, limited access to credit facilities, and a lack of technical skills among tourism entrepreneurs. A study conducted in Jerash, As-Salt, Amman, and Ajloun revealed that tourism entrepreneurs face significant challenges in accessing credit facilities. The study found that high interest rates on loans, limited access to credit facilities, and a lack of technical skills among tourism entrepreneurs are major obstacles to the growth of the sector. The study also found that the majority of tourism entrepreneurs in the study areas lack knowledge of financial management and marketing, which hinders their ability to access credit facilities. The credit gap in the tourism sector is a significant challenge, with high interest rates on loans, limited access to credit facilities, and a lack of technical skills among tourism entrepreneurs being major obstacles to the growth of the sector. The study found that the majority of tourism entrepreneurs in the study areas lack knowledge of financial management and marketing, which hinders their ability to access credit facilities. The study also found that the sector faces several third-party related factors, including a lack of coordination and joint efforts among stakeholders, which hinders the growth of the sector. The study recommends that the government and other stakeholders take several steps to address the credit gap in the tourism sector. These include providing training and capacity-building programs for tourism entrepreneurs, reducing interest rates on loans, and increasing access to credit facilities. The study also recommends that the government and other stakeholders establish a coordination mechanism to facilitate joint efforts among stakeholders and address the challenges facing the sector.