An Intervention of Microfinance in Tourism Sector: An Emerging Country Perspective


  • Saklesh Shivanna Nagouda Viveswaraya Technological University (VTU), Belgaum.
  • Veerashekharappa Viveswaraya Technological University (VTU), Belgaum.



Tourism, Microfinance, Poor, Poverty reduction, Emerging Countries, Responsible tourism


India has a tremendous potential for development in the tourism sector with huge heritage attractions. India is regarded as the 2nd fastest growing tourist market globally. To meet its potential, it needs a variety of funding in the form of unique set of financial products, services such as long-term and short-term credit, investment subsidies, supporting tax policies, lease financing & insurance products which could be taken care by commercial banks and Micro Finance Institutions (MFIs). They play a crucial role in providing innovative financial products and services in promoting livelihood in tourism destinations. 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, which have contributed towards poverty reduction worldwide. Thus, there is a high positive association between opening up of economies and poverty alleviation through financial inclusion achieved largely with contributions from micro-finance institutions. Microfinance operations being raised within the tourism sector to lend services to the micro business owners of tourism industry is an innovative approach. The tourism sector would get a further boost in terms of access to commercial capital to deliver the goods & services through the creation of better tourism infrastructure. This would attract greater no of tourists, for the sustainable growth creating a win-win situation for microfinance institutions and tourism-oriented businesses including other stakeholders.

Author Biographies

Saklesh Shivanna Nagouda, Viveswaraya Technological University (VTU), Belgaum.

Viveswaraya Technological University (VTU), Belgaum, Karnataka, India.

Veerashekharappa, Viveswaraya Technological University (VTU), Belgaum.

Viveswaraya Technological University (VTU), Belgaum, Karnataka and Post Graduate Department of Management Studies & Research Centre [PGDMS & RC], Tumkur, Karnataka, India.


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How to Cite

Shivanna Nagouda, S., & Veerashekharappa. (2022). An Intervention of Microfinance in Tourism Sector: An Emerging Country Perspective. Atna Journal of Tourism Studies, 17(2), 165 - 191.