International financial institution investments in tourism and hospitality

View/ Open
Downloads: 335
Downloads: 87
Date
2009Author
Perić, Jože
Mujačević, Elvis
Šimunić, Mislav
Metadata
Show full item recordAbstract
International Financial Institutions (IFI’s) like World Bank Group and other regional
developing banks helps reduce poverty and promote investments in less developed countries.
This article outlines the role of IFI’s in financing projects in tourism and hospitality
industry in developing countries, in terms of how much has been invested in these countries,
type of investment, the effects of these investments on local economy and the results of these
investments.
Article opens with background on the tourism sector in developing countries its role in
the economy. As the demand for tourism services has increased among World Bank Group
member countries, so has the World Bank technical assistance focused on attracting foreign
direct investment (FDI) in the tourism sector. So, in the second part of the article a brief
analysis of policy and instruments used by the IFI’s to finance projects in less developed
countries has been made especially by the International Finance Corporation which
investments and advisory work in countries served by International Development Agency
(IDA) now account for 40 percent of it’s projects.
The next section focuses on investment promotion activity, including the work of
Multilateral Investment Guarantee Agency (MIGA) and International Finance Corporation
(IFC). An overview of the investments made by IFC in projects in tourism and hospitality
industry in developing countries and guarantees issued by MIGA has been made. Article
analyses total investments made by the IFC and guarantees issued by MIGA in tourism and
hospitality industry for the period from 1991 – 2009, in developing countries.