THE RELATIONSHIP BETWEEN MICROFINANCE AND TOURISM (CASE OF ALBANIA)

Abstract

The purpose of this paper is to analyse the link between microfinance and tourism, explaining how microfinance institutions (MFIs) in Albania are supporting the development of tourism through providing microcredit to small tourism enterprises. Microfinance can offer low income people specifically those called un-bankable, the necessary financial support to enter entrepreneurship activities in tourism sector. On the other side, tourism development can contribute to reduce poverty through economic development especially in rural and mountainous areas. Primary data are used to show a descriptive panorama of the two main variables and a casual analysis is done through secondary data on tourism and microcredit sector in Albania. Using a Linear Regression Analysis, it is evidenced a relationship between the two analysed variables.