Skip to main navigation menu Skip to main content Skip to site footer


Vol. 19 No. 2 (2021)

Exploring Tourism Opportunities: Role of Financial Institutions in the Promotion of Tourism Entrepreneurship in Kerala

September 19, 2020


This study aims to assess the role of financial institutions in promoting tourism
entrepreneurship in the state of Kerala; Kerala is a brand of Indian tourism and the destiny
of world tourism. The study highlights the acumen behind the promotion of tourism
entrepreneurship, tourism opportunities in Kerala and identifies the role of financial
institutions in exploring tourism opportunities with the primary data sourced from 222
tourism entrepreneurs of Kerala. The study found that financial institutions significantly
assist tourism enterprises in asset creation. Further, the findings reveal a positive
association between financial assistance in the innovation of recreation facilities and a
stimulus to start enterprises in the tourism sector. The study provides deeper insights to
managers and academicians that the financial institutions should extend credit to the
tourism industry as Priority Sector Lending (PSL) along with other prime lending sectors.


  1. Aldakhil, A. M., Qazi Abro, M. M., Khurshid, M. A., & Aamir, A. (2015). Role of Financial Banks in Promoting the Entrepreneurship: A Mixed Methodology Approach from Kingdom of Saudi Arabia. International Journal of Financial Research, 6(4), 114-122.
  2. Ang, J. S. (1992). On the Theory of Finance for Privately Held Firms. The Journal of Entrepreneurial Finance 1(3), 185-203.
  3. Aziz, T., & Siddique, N.-E.-A. (2016). The Role of Bangladesh Bank in Promoting SMEs' Access to Finance in Bangladesh. International Journal of SME Development, (2), 103-116. Retrieved from
  4. Beck, T., Demirg1/4-kunt, A., & Maksimovic, V. (2003). Financial and Legal Constraints To Firm Growth"i: Does Size Matter"i? LX(January).
  5. Beck, T., Demirg1/4-Kunt, A., & Maksimovic, V. (2008). Financing patterns around the world: Are small firms different? Journal of Financial Economics, 89(3), 467-487.
  6. Beck, T., Demirg1/4-kunt, A., & Martinez-Pera, M. S. (2008). Bank Financing for SMEs around the World. The World Bank: Policy Research Working Paper, n. 4785(November), 1-43.
  7. Beck, T., Homanen, M., & Uras, B. R. (2019). Finance and Demand for Skill: Evidence from Uganda. Journal of Development Studies, 55(12), 2495-2512.
  8. Cenni, S., Monferr , S., Salotti, V., Sangiorgi, M., & Torluccio, G. (2015). Credit rationing and relationship lending . Does firm size matter"i? JOURNAL OF BANKING FINANCE, 53, 249-265.
  9. Chavan, R. R., & Bhola, S. S. (2015). Indian Tourism: A Conceptual Review. SSRN Electronic Journal, 3(3).
  10. Chen, C. F., & Chiou-Wei, S. Z. (2009). Tourism expansion, tourism uncertainty and economic growth: New evidence from Taiwan and Korea. Tourism Management, 30(6), 812-818.
  11. Creaco, S., & Querini, G. (2003). The role of tourism in sustainable economic development. 43rd Congress of the European Regional Science Association 27 August - 30 August, 2003 Jyvaskyla, Finland The, 1-17.
  12. Dritsakis, N. (2004). Tourism as a long-run economic growth factor: An empirical investigation for Greece using causality analysis. Tourism Economics, 10(3), 305-316.
  13. Durbarry. (2004). Tourism and Economic Growth: the case of Mauritius. Tourism Economics, 10(4), 389-401.
  14. Fayissa, B., Nsiah, C., & Tadesse, B. (2011). Research note: Tourism and economic growth in Latin American countries - Further empirical evidence. Tourism Economics, 17(6), 1365-1373.
  15. Feakins, M. (2004). Commercial Bank Lending to SMEs in Poland. Small Business Economics, 23, 51-70.
  16. Fowowe, B. (2017). Access to finance and firm performance: Evidence from African countries. Review of Development Finance, 7(1), 6-17.
  17. Gbandi, E. C., & Amissah, G. (2014). Financing options for small and medium firms (SMEs) in Nigeria. European Scientific Journal, 10(1), 327-340.
  18. Hannam, K. (2004). Tourism and forest management in India: The role of the state in limiting tourism development. Tourism Geographies, 6(3), 331-351.
  19. Kallmuenzer, A., Kraus, S., Peters, M., Steiner, J., & Cheng, C. F. (2019). Entrepreneurship in tourism firms: A mixed-methods analysis of performance driver configurations. Tourism Management, 74(April), 319-330.
  20. Kamalakshi, M. V. (1996). Hotel industry in Kerela with special refrence to Tourism. 440.
  21. Karatzoglou, B., & Macedonia. (2004). The integration of Activity-based management in the construction of a destination environmental scorecard. 1-15.
  22. Kayanula, D., & Quartey, P. (2000). Supply and Demand for Finance of Small Enterprises. Retrieved from
  23. Kersten, R., Harms, J., Liket, K., & Maas, K. (2017). Small Firms, large Impact? A systematic review of the SME Finance Literature. World Development, 97(2016), 330-348.
  24. Kim, H. J., Chen, M. H., & Jang, S. C. S. (2006). Tourism expansion and economic development: The case of Taiwan. Tourism Management, 27(5), 925-933.
  25. Lee, C. C., & Chang, C. P. (2008). Tourism development and economic growth: A closer look at panels. Tourism Management, 29(1), 180-192.
  26. Mina, T. R. (2014). SME Banking of Jamuna Bank Limited.
  27. Morawska, L. and T. S., Luke, D., Morawska, L. and T. S., Mafuyai, G. M., Eneji, I. S., Ato, R. S., ... Giulio, D. R. Di. (2015). Code of practice on safety and health in the iron and steel industry. Brisbane, Queensland University of Technology, 38(4), 6803-6812.
  28. Narayan, P. K. (2004). Economic impact of tourism on Fiji's economy: Empirical evidence from the computable general equilibrium model. Tourism Economics, 10(4), 419-433.
  29. Nongsiej, P., & Shimray, S. R. (2017). The Role of Entrepreneurship in Tourism Industry: An Overview. Entrepreneurship and Education in Tourism, (April), 15-24.
  30. Oh, C. O. (2005). The contribution of tourism development to economic growth in the Korean economy. Tourism Management, 26(1), 39-44.
  31. Parra Lopez, E., Buhalis, D., & Fyall, A. (2009). Entrepreneurship and Innovation in Tourism. PASOS Revista de Turismo y Patrimonio Cultural, 7(3), 355-357.
  32. Peric, J., Mujacevic, E., & Simunic, M. (n.d.). International financial institution investments in tourism and hospitality. Journal of International Business and Cultural Studies, 1-18.
  33. Piza, C., Cravo, T. A., Taylor, L., Gonzalez, L., Musse, I., Furtado, I., ... Abdelnour, S. (2016). The Impact of Business Support Services for Small and Medium Enterprises on Firm Performance in Low" and Middle" Income Countries: A Systematic Review. Campbell Systematic Reviews, 12(1), 1-167.
  34. Rao, K. S., & Noorinasab, A. R. (2013). The Role of SIDBI in developing the MSMEs in India. Journal of Economics and Finance (IOSR-JEF), 1(6), 8-14.
  35. Ravindram, A., & Vinodan, A. (2009). Implication of Microfinance on Tourism Development and Inclusive Growth in India: Emerging Models. South Asian Journal of Tourism & Heritage, 2(1), 56-67.
  36. Robinson, M. (2016). A Study On Tourism Marketing Development"i: Literature Review. 2(10), 299-301.
  37. Rogerson, C. M. (2008). Developing Small Tourism Businesses in Southern Africa. Botswana Notes and Records, 39(2008), 23-34.
  38. Romero, & Molina, J. A. (2013). Tourism and economic growth: A review of empirical literature. Tourism Management Perspectives, 8, 28-41.
  39. Roy, S., & Misra, S. (2015). A systematic literature review on the travel and tourism growth enablers. International Journal of Economic Research, 12(3), 661-684.
  40. Samina. (2008). Role of Tourism in Economic Growth: Empirical Evidence from Pakistan Economy. The Pakistan Development Review, 46(4).
  41. Samuel, Masaki, R. (2009). The Perceptions of Small Business Owners on Tourism Development in the Blackstone Valley, Rhode Island. Journal of Service Science and Management, 02(03), 137-148.
  42. Shankar, S. (2016). Bridging the "Missing Middle" between Microfinance and Small and Medium-Sized Enterprise Finance in South Asia. (April 2016).
  43. Sharma, A. P. and S. (2014). Barriers to Innovation in Indian Small and Medium-Sized Enterprises. Asian Development Bank Institute, (588), 75-75.
  44. Singh Jaswal, S. (2014). Role of Tourism Industry in India's Development. Journal of Tourism & Hospitality, 04(02), 2-7.
  45. Solvoll, S., Alsos, G. A., & Bulanova, O. (2015). Tourism Entrepreneurship - Review and Future Directions. Scandinavian Journal of Hospitality and Tourism, 15(September 2015), 120-137.
  46. Stanislav Ivanov, C. W. (2007). Measuring the impact of tourism on economic growth. Tourism Economics, 13(3), 379-388.
  47. Taskov, N., Metodijeski, D., Dzaleva, T., & Filipovski, O. (2011). Entrepreneurship in tourism industry lead to business benefits. 2nd BIENNIAL INTERNATIONAL SCIENTIFIC CONGRESS THE INFLUENCE OF TOURISM ON ECONOMIC DEVELOPMENT, 1-12.
  48. Thampy, A. (2010). Financing of SME firms in India Interview with Ranjana Kumar , Former CMD , Indian Bank"i; Vigilance Commissioner , Central Vigilance Commission. IIMB Management Review, 22(3), 93-101.