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Chapter 7 – National Mission on Tourism MSMEs
7.1.
Tourism MSMEs – across sectors
The Policy recognizes that tourism is dominated by a large number of MSMEs across
the sectors namely:
(i)
Accommodation
(ii)
Food and Beverages
(iii)
Tourist attractions both cultural and natural
(iv)
Transportation
(v)
Recreation and adventure activities
(vi)
Events and conferences
(vii)
Travel Trade
(viii)
Other Tourism services
7.2.
Tourism MSMEs - vital for job creation
MSMEs are vital means for tourism to promote inclusive growth as they lead to a
more equitable distribution of costs and benefits
through increasing job
opportunities for poor households and utilizing locally generated inputs. In addition
to hiring locally, MSMEs provide jobs that are less skill-intensive with more flexible
work arrangements which are more suitable for households.
7.3.
Tourism MSMEs - Challenges and Barriers
MSMEs in the tourism sector often face challenges in accessing capital from public
and private sources. Tourism MSMEs also face the challenge of complex regulatory
environment to ensure regulatory compliances and
access various government
services. MSMEs also lack trained workers, human resource development capacity,
management skills and adequate policies for career development of workforce.
MSMEs also face challenge in marketing and promoting their products and services.
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