The International Finance Corporation (IFC), a member of the World Bank Group, has launched a new project to promote growth and investment in the sector of tourism of Kyrgyz Republic, one of the directions is developing of a competitive value chain in the tourism sector.
In this area, commissioned by IFC, Spot On Consulting conducted diagnostics of the financial sector, starting from May 2019. The purpose of the diagnosis is to study the financial products that are available in financial institutions for entrepreneurs in the tourism sector. The results will be used by the IFC project to develop innovative financial products to finance the needs of entrepreneurs working in the tourism sector.
Diagnostic tasks of the financial sector:
- Collection of data on the loan portfolio of Financial Institutions (FI) in general and volume of tourism lending in particular;
- Determining the development strategies of tourism lending in the FI, portfolio growth, sales channels;
- Determining the accessibility of policies and procedures for tourism sector lending;
- Determining of reporting systems for managing the travel portfolio;
- Analysis of the availability of lending facilities for small, medium and large enterprises in the sector of public catering, hotel business, general industry services;
- Quantification of cumulative deficiency or financing opportunities;
- Assessment of restrictions on tourism lending by the Regulator;
- Identification of stimulating factors for the development of lending the stimulating factors for the development of lending in FI sector.
To obtain the most comprehensive and reliable information, several methods has been applied:
- Desk study, which consists in the collection and analysis of existing statistics, reports, publications, as well as legislation in the field of tourism.
- Qualitative research of FI – structured questionnaire and interviewing of key FI employees.