Community Based Tourism
Finding the Euilibrium in the COMCEC Context
35
Development Agency (CIDA), and the Asian Development Bank. Appendix B provides a
short list of major networking and partnership organizations.
External funding can be acquired from these organizations to be used for establishing the
prerequisites of tourism development, set-up of partnerships, developing skills (education,
training), and building infrastructure. However, business ventures cannot depend on such
external funding as direct subsidies to the enterprise; donor funds cannot extend along the
lifespan of developing such business ventures. Therefore, other sources of funds need to be
identified and acquired.
Some financial costs can also be avoided by in-kind support from government, NGOs and
donor organizations by taking care of some of the management or marketing tasks for the
CBT ventures, especially helping with business and marketing plans for locals to
successfully secure loans when needed. Soft loans, micro financing, long term credits are
choices for the locals to set-up their businesses; however, institutional support needs to be
in place as a friendly loan application process for these locals. Government policy and
encouragement of lending bodies, as well as lenders’ assistance with more reasonable loan
programs would define locals’ courage and initiative, as well as their success level in
seeking available loans and credits. Box 7 provides different ways that a government can
create an enabling environment for CBT development as a part of the country’s national
development strategy.
Box 7. Ways that a Government Can Create Enabling Environment for CBT Development
 Technical help with the business/site owner/investor in preparing sound business and
marketing plans and book keeping needed for successful loan application
 Regular sensitization workshops for the lenders,
 Fiscal incentives to encourage financial and non-financial institutions to invest in CBT projects
(e.g. tax breaks)
 Emphasis on the socio-economic (livelihood) and environmental impacts of CBT
 Encouraging schools and government institutions and organizations to visit and patronize
existing CBT products
Source: Authors’ compilation from diverse information sources
Besides the government, lenders also have a critical role in locals’ courage and initiative
and success level in applying for funds. Box 8 lists the factors that lenders need to pay
attention in order to establish an encouraging fiscal-assistance platform for the locals.
Box 8. Factors that lenders need to pay attention to in order to establish an encouraging
fiscal-assistance platform for the locals
 Understanding attitude for the sensitive CBT conditions
 Reasonable time frames for processing loan applications without delays.
 Flexibility in criteria, terms, conditions, rates of interest/financing rate, and payment plans.
 Soft loan packages, with a moratorium and creative repayment terms.
 Special financial packages to suit the needs of the site owners/investors.