Case Study

Expanding Access to Finance for Tourism Enterprises in Jordan

Unlocking Finance to Grow Jordan’s Tourism Sector
Finance and Investment

The Challenge

Small-and-medium-sized tourism enterprises (SMEs) in Jordan faced significant barriers to accessing finance. These included high interest rates, lack of collateral, short grace and repayment periods, and limited capacity to develop bankable business plans. Compounding these issues was a widespread perception among banks that tourism was a high-risk sector, especially in light of regional instability and inconsistent financial reporting by SMEs. As a result, many tourism businesses—particularly those outside Amman—struggled to secure the capital needed to grow or even sustain operations.

Our Solution

Tailored Lending, Training, and Ecosystem Partnerships

Chemonics worked directly with financial institutions and other ecosystem actors to transform the status quo in the tourism sector through:

  • Bank Partnerships and Product Development: Chemonics partnered with six Jordanian banks to co-develop tourism-specific loan products, including Sharia-compliant options. These products were tailored to the unique needs of tourism SMEs, offering flexible terms and leveraging loan guarantee programs.
  • Capacity Building for Lenders and Borrowers: Chemonics trained bank credit officers in tourism sector dynamics and financial analysis, while also equipping tourism entrepreneurs with the skills to prepare compelling, bankable loan applications.
  • Awareness Campaigns and Roadshows: Chemonics organized investment and finance roadshows across 11 governorates, reaching over 1,100 potential investors. These events promoted tourism incentives and financing options, linking entrepreneurs with banks and support services

The Impact

Catalyzing Investment, Jobs, and Financial Inclusion throughout Jordan

Chemonics’ services led to significant impact:

  • Increased Lending and Investment: Partner banks issued 47 loans to tourism businesses, half of which were located outside of Amman. These loans supported 16 start-ups and 8 women-owned businesses, catalyzing over $44 million in tourism investment and creating more than 600 jobs.
  • Diversified Financial Ecosystem: The initiative led to the development of five new tourism loan products, including microfinance options through partnerships with institutions like Microfund for Women.
  • Improved Financial Literacy and Access: More than 200 tourism entrepreneurs received training in business planning and financial management, significantly improving their ability to secure funding and sustain operations.