Problems and prospects of tourism financing in Sikkim

Abstract

In Sikkim, tourism is an industry that has a variety of positive economic and social effects. Utilizing both forward and backward connections with other economic sectors like agriculture, industry, and other service sectors, not only increases foreign exchange earnings and the country’s limited resources but also provides opportunities for employment on all fronts, including direct, indirect, and induced employment. However, it has always struggled with administration and insufficient finances. Keeping this in mind, the current study aimed to examine the problem and prospects of tourism financing in Sikkim. The primary data was gathered from 385 respondents (Investors, Stakeholders, and Tourism Businesses) from Sikkim, who were randomly selected from the targeted population. The responses have been collected through a structured questionnaire, and SPSS 25 has been utilized for data analysis. The findings revealed that there is a significant impact of tourism financing on the development of local communities, and there is a significant relationship between the involvement of financial institutions and the development of tourism projects. It has been concluded that tourism financing in Sikkim has resulted in the progress of tourism in the state, which led to the development of local communities and the development of tourism projects.