The Housing Bank launched a new loan product today that is specifically geared towards tourism businesses. This initiative is part of efforts supported by the USAID Building Economic Sustainability through Tourism (BEST) project to boost access to credit for small and medium-sized tourism enterprises, particularly outside of Amman. Tourism is an important contributor to Jordan’s economy, generating income and jobs throughout the country. The new specialized Housing Bank loan product offers an incentive for Jordanians to build, expand and enhance their tourism businesses.
These tourism loans offer financing for small and medium, as well as large, tourism-related enterprises and companies in the Kingdom. The USAID BEST project will be providing 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.
The tourism loan product launched by the Housing Bank addresses a range of financial needs of companies working in the tourism sector; such as financing the purchase of fixed assets, working capital (purchases and sales), construction, modernization and expansions, purchasing partners' shares and opening of new branches. The loans are offered at flexible terms and preferential interest rates as an incentive for tourism businesses and in support of the development of this sector. Ultimately, such an initiative can serve to encourage tourism entrepreneurs, create jobs and boost local economies around Jordan.