Effects of financial Support to Tourism Enterprises
Name
ACCT 6600 - Managing Operational and Financial Business Risks
Walden University
2022
Effects of financial Support to Tourism Enterprises
Proper financial support to tourism enterprises has diverse positive effects for instance according
to Ashley, (2007) Tourism is a catalyst for investment in other sectors, and it stimulates
economic diversification across sectors. It offers strong potential for environmental and cultural
linkages by providing an economic incentive to preserve natural and cultural sites, undertake
environmental cleanup efforts, and improve local environmental management. Tourism
expenditures can turn over 7 to 11 times in an economy. Pro-poor tourism studies have shown
tourism linkages clearly benefiting the poor.
According to Mann (2007), Tourism as an economic tool is often utilized for its ability to
contribute to growth and, in particular, on a local level extend benefits to the poor and
communities. The links to local communities include employing local people and sourcing goods
and services from the community, supporting the establishment of micro- or small-scale
enterprises to supply hotel needs, and upgrading training and skills for specific activities, such as
guides. Interdependence between the local community and tourist accommodation generally
improves relations and the benefits are mutual. Other initiatives are designed to empower local
people to host tourists in their communities and thus give value to natural or cultural assets
owned by the local community. Hosting may include reception facilities for daytime visits or
overnight accommodation for tourists.
Pedroso, (2004) further asserts that, governmental organizations have initiated, with mixed
success, many community-based projects to try to establish linkages to traditional tourism. Some
of the failures can be attributed to locations that are too remote and thus unable to achieve the
volume necessary for sustainability. Private sector involvement at the planning stage ensures
purchase of local goods and services from the outset and helps avoid unfulfilled expectations of
tourists and locals. Hotel managers or owners are now deliberately involving the local
community in their activities, sometimes through the guidance of outside technical assistance.
