The Central Bank of Jordan (CBJ) just announced that it has significantly lowered interest rates on Midterm loans for five sectors, one of which is tourism. Through this decision the CBJ aims to improve opportunities for small and medium-sized businesses outside Amman, particularly for tourism businesses and projects, to help expansion, enhancements and growth.
USAID BEST is working to boost access to finance for Jordan’s tourism sector businesses, investors and entrepreneurs, particularly for small and medium-sized tourism enterprises. USAID BEST identified challenges and common hurdles faced by tourism entrepreneurs and business owners in accessing credit and then worked with banks to create loan products that meet tourism sector needs. To date a customized tourism loan is being offered by the Housing Bank, and other banks are soon to follow suit. USAID BEST will also provide technical assistance to the tourism entrepreneurs and businesses taking out these loans, helping them to prepare effective loan applications and enhancing their financial and business management capacities for greater competitiveness and more efficient operations. In addition, greater awareness of the potential that tourism projects and businesses hold will be instilled among bank employees in order to ensure accurate and balanced assessments and improve their willingness to provide tourism loans. Tourism is an important contributor to Jordan’s economy, generating income and jobs throughout the country.