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sustainability

Article
The Role of the World Bank in the Inclusive
Financing of Tourism as an Instrument of
Sustainable Development
Isabel Carrillo-Hidalgo 1, * and Juan Ignacio Pulido-Fernández 2
1 Department of Financial Economics and Accounting, University of Jaén, 23005 Jaén, Spain
2 Department of Economics, University of Jaén, 23005 Jaén, Spain; jipulido@ujaen.es
* Correspondence: ihidalgo@ujaen.es

Received: 24 September 2019; Accepted: 25 December 2019; Published: 30 December 2019 

Abstract: It is widely accepted that tourism, given the right conditions, can be an important instrument
of economic growth and a means of improving the quality of life for the societies in which it is
implemented, particularly in developing territories. International financial institutions are aware of
the role that tourism can play in this regard and, accordingly, have included it within their strategies
to further sustainable development and financial inclusion. The World Bank is one of the institutions
working to foster tourism, although, interestingly, it only began working in this area very recently
(2016). This paper analyses the role of the World Bank in the inclusive financing of tourism as an
instrument of sustainable development and compares it with the finance allocated to another four
sectors in the branch of trade and industry. To this end, using a system of indicators previously
tested in the literature, it analyses a total of ninety-two projects directly related with tourism, trade,
manufacture, services, and housing construction activity. The results obtained, when compared
to the finance allocated to other sectors of trade and industry (to which tourism also belongs),
indicate that the World Bank’s financing of tourism could sharpen its focus on financial inclusion,
which would ensure greater efficiency and efficacy in the attainment of its poverty reduction and
development goals.

Keywords: tourism; sustainability; World Bank; financial inclusion; development cooperation

1. Introduction
Tourism is an activity that can contribute to development and poverty reduction in certain
developing economies, especially in countries with the right potential and an appropriate strategic
approach geared towards sustainability [1–8].
López and Esteban [9] argue that sustainable tourism offers destinations a hugely important
strategic opportunity. These authors signal that sustainable tourism development, in its three
dimensions (economic, social, and environmental), dynamically integrates endogenous and exogenous
resources, which, if managed correctly, can be a focus for social, economic, environmental and cultural
benefits. The important thing is to ensure that sustainable development derived from tourism is
possible in the medium to long term, avoiding short-term models of tourism development that do
not respect the environment or local culture, break the harmony of socioeconomic development, or
accelerate the depletion of resources.
Bearing in mind other factors that affect economic growth and sustainable development, the
finance sector forms the foundation for the development in production sectors [10], and financial
inclusiveness has emerged as an important driving force for economic growth [11], since it enables
excluded sectors of society to access the formal financial system.

Sustainability 2020, 12, 285; doi:10.3390/su12010285 www.mdpi.com/journal/sustainability


Sustainability 2020, 12, 285 2 of 21

In general, over the past decade, inclusion has caught the attention of a great many institutions
and governments [12], which have been making greater efforts than ever before to foster financial
inclusion. As a consequence, the percentage of unbanked adults declined between 2011 and 2014, from
49% to 38% [13], and between 2014 and 2017, from 2000 million to 1700 million people [14].
The World Bank (hereinafter WB) states that financial inclusion is one of the objectives that
must be achieved in order to attain its development goals, by investing in different strategic sectors,
including tourism.
In order to achieve its development and poverty reduction goals, the WB, through the International
Bank for Reconstruction and Development and the International Development Association, finances
and provides technical assistance to the governments of developing countries, working with them to
design the most suitable form of collaboration, first identifying the country’s main priorities to reduce
poverty and improve the standard of living. Hence, the WB and the government of each country
establish the core aspects of the project to be financed and its beneficiaries, and then a WB working
group sets out all the other components in detail. The government of the respective country and the
WB then work together to review all the analytical preparation and groundwork carried out on the
project, confirming the viability of the expected outcomes and evaluation tools. Once the WB gives the
project the green light, finance is approved, and implementation gets underway [15].
Since the 1970s, the WB has financed projects in sectors that have a direct influence and impact on
tourism. However, the WB did not formally consider tourism as a specific sector in which it needed to
act until 2016. Hence, the financing of projects that pursue the sustainable development of tourism
drives governments and development partners towards a more systematic and inclusive approach
when designing, implementing, and evaluating the economic, social, and environmental impacts of
these investments [16].
The importance bestowed on financial inclusion by the WB is reflected in two of its active initiatives:
Universal Financial Access by 2020, launched in 2013, which pledges that 1000 million adults will have
access to financial services within this timeframe, and the Financial Sector Assessment Program, to
help strengthen the financial systems of countries and tackle a variety of issues affecting the financial
sector [15].
Bearing in mind the interest the WB has expressed in financial inclusion and the potential offered
by tourism to developing economies, by promoting both aspects from the perspective of sustainability,
the positive effects on the economy are multiplied, if access to the formal financial system is fostered
among the most excluded population sector with the greatest influence on the development of tourism
within a given destination: local SMEs [17].
Therefore, it is interesting to analyse the extent to which the WB transfers the value it bestows
on the goal of financial inclusion to the financing of tourism, in comparison with other sectors of
the ‘trade and industry’ branch, according to the WB classification of sectors, such as: manufacture,
trade, services and housing construction, insofar as tourism is considered a fundamental sector for the
achievement of its goals.
The starting hypotheses for this research, applied to the WB’s financing of tourism, since tourism
has been classed as an independent sector for finance purposes, are as follows:

Hypothesis 1 (H1). The financing of tourism does not hold a prominent position with regard to the efforts made
towards financial inclusion, when compared to other production sectors of trade and industry.

Hypothesis 2 (H2). The WB should improve its behavior towards financial inclusion when financing tourism,
by advocating greater consideration of this target among the development goals of projects and allocating finance
in accordance with criteria and conditions that are more oriented towards financial inclusion.

To test these hypotheses, the following objectives were proposed:


Sustainability 2020, 12, 285 3 of 21

1. To obtain the necessary information to have the database of WB development projects in productive
sectors of the industry and trade branch.
2. To apply the tool (system of indicators) developed by Carrillo-Hidalgo and Pulido-Fernández [18],
capable of measuring the efforts made by international financial institutions in their financing of
tourism to achieve financial inclusion, which is the starting point for this research.
3. To type the results of the tool.
4. To draw up a ranking based on the efforts made by the WB to promote financial inclusion
when financing development projects in the tourism, manufacture, trade, services, and housing
construction sectors.

2. Theoretical Framework
One of the most recent definitions given for the concept of financial inclusion is proposed by
Nuzzo and Piermattei: “the ease of access by individuals and enterprises to appropriate and reasonably
priced financial services” ([19] p. 7).
The lack of access or limited access to financial services is a reality that affects millions of people
and SMEs. The data confirm this. In developed economies, 94% of adults have a current account.
However, in developing economies this percentage drops to 63%. When it comes to obtaining finance, in
high-income economies, more than 50% of borrowers turn to the formal financial system, a percentage
that drops to less than 20% in developing economies, where people tend to turn to relatives or friends.
In general, globally, around 1700 million adults do not have access to formal financial services [14].
Furthermore, those who are excluded from the formal financial system have a perfectly defined
profile. The majority come from homes without financial resources, have a low level of education,
are outside of the labour market or are self-employed, and a higher percentage are women [20,21].
As for companies, SMEs face the greatest difficulty accessing the financial system, since banking and
non-banking financial institutions are usually reluctant to provide financing to SMEs, especially in
developing countries [22].
Hence, it is fundamental to facilitate access to financial services for people who fit in with this
profile, although it is also true that, in order to ensure the development of an economy, it is essential to
achieve financial inclusion for the majority of the population, regardless of their condition.
Within the sphere of tourism, businesses that wish to make sustainable investments in the sector
need access to long-term finance for high amounts, principally in the case of investments made in
infrastructures and equipment, which require greater guarantees [23]. These conditions make it difficult
for local tourism businesses, chiefly SMEs, to access finance, which limits the growth and sustainable
development of this activity. Tourism multinationals achieve the highest level of integration in the
financial system, since they can secure finance more easily [18].
There are studies [9,23] that demonstrate the presence of two-way causality between tourism and
GDP per capita, financial development and the growth of tourist demand, showing that tourism is
essential to improving growth and sustainable economic development [24].
In fact, in a study carried out in Cambodia, Ngoasong and Kimbu [25] analysed the role of
micro-financial institutions in tourism enterprise, discovering that micro-financial institutions favoured
business creation, especially SMEs, which are fundamental in tourism development, in which qualitative
aspects are more important than quantitative ones, giving rise to a lower concentration of tourist
activity within a territory [26].
International financial institutions, in order to achieve their development and poverty reduction
goals, should allocate resources to the financing of development projects that play a decisive role in
their outcomes, since an effective project is the reflection of an effective investment with high social
and also commercial returns [27]. The WB, in particular, has carried out projects to improve financial
inclusion in developing countries, adopting modern finance systems to achieve its poverty reduction
goals [22].
Sustainability 2020, 12, 285 4 of 21

The actions of these institutions to favour financial inclusion focus on providing liquidity in
advantageous conditions, by means of a wholesale banking scheme, and through initiatives that
directly or indirectly promote access to finance, such as non-financial support, financial education,
technical assistance, support for system regulation, or through the creation of guarantee funds [28].
However, some development banks have tended to finance non-profitable projects from a
commercial and social perspective, allocating finance to more solvent sectors with plenty of liquidity
and/or the powerful elite [29].
In a study about the WB, Markandya [30] established that, until 2003, this body had not assigned
a fundamental role to tourism in terms of its development strategy, although it gradually considered
tourism to be more important, especially with regard to the sustainable use of natural resources and
this sector’s growing weight in the economy of many developing countries.
Hawkins and Mann [16] analysed the work carried out by the WB with regard to tourism, stating
that, in the view of the WB itself, as well as the destination country and the project managers, tourism
is affected by a series of external factors, such as seasonal fluctuations, dependency on trends, the
political and economic situation of the destination and internationally, natural disasters, etc., which are
seen as a challenge when allocating finance to development.
These authors concluded that the WB made its greatest financial effort with regard to sustainability
over the course of the 1990s, when the concept of sustainable tourism appeared on the back of
sustainable development. This was when the WB, together with the United Nations Development
Programme, created the Global Environment Facility, through which it financed tourism development
projects, justifying the sustainability of the investments for the environment and cultural preservation
with economic benefits.
The projects financed focused principally on environmental, cultural and social issues. However, in
just 14% of the projects financed during this time was there an attempt to quantify their impacts [29,30],
denoting a lack of commitment on the part of the institution [16].
When financing tourism, international financial institutions should focus on improving the sector’s
competitiveness and SME access to finance, since small businesses have a positive influence on the
supply of jobs, and ensuring the benefits of the sector, as well as reinforcing certification systems, since
they incentivize the tourism sector and facilitate access to finance [27].
To launch sustainable tourism projects and secure funds, these institutions understand that the
Departments of Tourism of the governments in which they are carried out are essential, according
to Tapia [27] for the case of the Inter-American Development Bank. This view was subsequently
confirmed by Carrillo-Hidalgo and Pulido-Fernández [17] in their analysis about the efforts made in
terms of financial inclusion by international financial institutions in financing tourism in Latin America
and the Caribbean.
Using the same tool applied in this present paper, Carrillo-Hidalgo and Pulido-Fernández [17]
concluded that, in the international financing of tourism in Latin America and the Caribbean, the
characteristics, volume of finance, recipients, objectives, and even the non-financial efforts made do
not favour financial inclusion in destinations where the projects are carried out. In other words, “this
financing is not inclusive from a financial perspective, and therefore the efforts made in this regard are
not enough” [17,31].

3. Methodology
Using the tool developed by Carrillo-Hidalgo and Pulido-Fernández [18] to measure the financial
inclusion orientation of projects that could influence tourism, financed by international financial
institutions (Table 1), we obtained from the WB webpage all the required data about the projects
financed in the housing construction, manufacture, services, tourism and trade sectors, since 2016,
when tourism was formally established as a fundamental sector in which action needed to be taken in
order to achieve its development and poverty reduction goals.
Sustainability 2020, 12, 285 5 of 21

Table 1. Indicators that make up the tool to measure effort in financial inclusion in the financing of
tourism by international financial institutions.

Block Indicator Description Sign


A1.a Financial inclusion–number of projects +
A1.b Financial inclusion–volume of finance +
A2.a Financial inclusion of women–number of projects +
A
A2.b Financial inclusion of women–volume of finance +
A3.a Financial inclusion of SMEs–number of projects +
A3.b Financial inclusion SMEs–volume of finance +
B1 Number of recipients +
B2 Percentage of women recipients +
B3 Percentage of SME recipients +
B4 Percentage of projects that benefit other businesses +

B B5 Percentage of projects that benefit SMEs +


B6 Percentage of public recipients −
B7 Annual variation in the number of recipients +
B8 Growth rate in the number of recipients +
B9 Client poverty level according to per capita GDP −
B10 Drop-out rate −
C1 Average finance per recipient −
C2 Average size of projects −
C3 Average size of first projects −
C4 Percentage of finance allocated to women +
C5 Percentage of finance allocated to SMEs +
C6 Percentage of finance allocated to rural or excluded areas +
C C7 Percentage of finance allocated to the public sector −
Percentage of finance allocated to the public sector, aimed at
C8 +
improving financial inclusion
C9 Percentage of projects financed per recipient +
C10 Average projects financed per women recipient +
C11 Average projects financed per SME recipient +
C12 Average year-on-year variation of the total financed +
C13 Growth rate of the finance portfolio +
D1 Level of finance dispersion −
D2 Average time for approval −
D3 Average annual approximate effective cost −
D4 Average repayment term +
D5 Average waiting period +
D D6 Emergency financial instruments +
D7 Small financial instruments +
D8 Non-repayable finance +
D9 Finance through guarantees +
D10 Finance channelled through other financial institutions +
D11 Finance channelled through subprojects +
E1 Finance that incorporates technical assistance +
E
E2 Finance that incorporates training +
Source: Carrillo-Hidalgo and Pulido-Fernández [18].
Sustainability 2020, 12, 285 6 of 21

This tool is made up of 39 indicators capable of evaluating management quality, which are divided
into five different categories, depending on the aspects to be measured:

A. Integration of financial inclusion in the development goals of the projects.


B. Scope and growth of the portfolio of finance recipients and beneficiaries.
C. Characteristics related with the volume of finance, its distribution and evolution.
D. Characteristics of the finance itself.
E. Non-financial efforts made with regard to financial inclusion through the development projects.

The indicators are also classified into two categories, positive (+) or negative (−), so that the
bigger the result, better or worse behaviour, respectively, oriented towards fostering financial inclusion,
reflects the attitude of institutions in tourism financing.
This research focuses on analysing projects financed by the WB that have a direct influence on the
tourist sector and comparing them with finance allocated to the housing construction, manufacture,
services, tourism, and trade sectors. Hence, the database used is made up of a total of 98 projects
financed since 2016, up to the present day (2019), including 32 in the tourism sector, 34 in trade, 17 in
housing construction, eight in manufacture, and seven in the services sector (Supplementary Table S1).
Firstly, a descriptive analysis was performed of the main characteristics of this tourism finance
provided by the WB, determining and defining its main traits in general, in order subsequently to apply
the tool to the database and obtain results that could preferably be interpreted in terms of the effort
made by the WB with regard to financial inclusion when financing tourism and compare it with the
finance allocated to the aforementioned sectors encompassed by the WB’s ‘trade and industry’ branch.
The only indicator for which we did not obtain a result was B10, about the volume of finance that
has been fully repaid, since no project in the database has reached its maturity date yet.
The results yielded by the indicators are heterogeneous and expressed in different units, and
consequently the data have been normalised and standardised in order to reach more global and
consistent conclusions. Hence, a value has been obtained, Zij , which follows a normal distribution
with a mean value of 0 and standard deviation of 1 (N(0,1)), providing relative values which reflect the
number of times a value moves away from the average, either above (values above zero) or below
(values below zero), applying the following formula:
 
Xij − µj
Zij = (1)
σj

where Xij indicates the value of each indicator for each sector, µj is average of the indicators values
thrown by the financing of each sector, and σj is standard deviation of the indicators values thrown by
the financing of each sector.
Once the results of each indicator were standardised, the mean values corresponding to each
group of indicators were calculated, adding the ‘positive’ standardised results, and subtracting the
‘negative’ results for each block and institution.

4. Results and Discussion

4.1. Descriptive Analysis


Since 2016, the year in which the WB formally established tourism as a specific sector that required
finance in order to achieve its development and poverty reduction goals, this institution has allocated
1952.32 million dollars to tourism through 32 projects, 31 of which are still active, and only one,
allocated five million dollars, in Samoa, has been closed since 2017, although the finance allocated will
not be fully repaid until 2036. Hence, the WB corroborates the arguments put forward by Tapia [27],
by financing projects that have a direct impact on tourism, a sector that can play a decisive role in
its results.
Since 2016, the year in which the WB formally established tourism as a specific sector that
required finance in order to achieve its development and poverty reduction goals, this institution has
allocated 1952.32 million dollars to tourism through 32 projects, 31 of which are still active, and only
one, allocated five million dollars, in Samoa, has been closed since 2017, although the finance
allocated will2020,
Sustainability not 12,
be 285
fully repaid until 2036. Hence, the WB corroborates the arguments put forward 7 of 21
by Tapia [27], by financing projects that have a direct impact on tourism, a sector that can play a
decisive role in its results.
TheThe finance
finance allocated
allocated to tourism
to tourism by by
thethe
WBWB is divided
is divided intointo
thethe different
different regions
regions of of
thethe world
world
(Figure 1). The region that has received the most finance is East Asia and the Pacific
(Figure 1). The region that has received the most finance is East Asia and the Pacific (34.77%), with (34.77%), with
678.8
678.8 milliondollars,
million dollars,disbursed
disbursed among
among 88 projects,
projects,followed
followedbyby Africa, which
Africa, has has
which received 469.2469.2
received million
dollars (24.03%), through 11 projects. South Asia occupies last place in terms of
million dollars (24.03%), through 11 projects. South Asia occupies last place in terms of the volumethe volume of finance
of (10.19%); last placelast
finance (10.19%); in terms of the
place in termsnumber
of theofnumber
projectsofawarded
projects finance
awarded is held
financeby Latin
is heldAmerica
by Latin and
the Caribbean,
America with just three
and the Caribbean, withover
just the course
three over of
thethe last three
course of theand
lastathree
half years.
and a half years.
Sustainability 2019, 11, x FOR PEER REVIEW 7 of 20

Europe and Central Asia 306


Figure 1. Regional distribution of tourism finance allocated by the World Bank (2016–2019) (Figures
East Asia and the Pacific 678.8
expressed in millions of dollars). Source: Authors’ own based on World Bank data [15].
South Asia 199
Latin America and the Caribbean 229.3
This geographical distribution is broken down by country in Figure 2.
Africa 469.2have received the highest level of
Indonesia (15.37%), China (14.32%), and El Salvador (10.24%)
tourism finance from the WB. At0 the other 100 end, Vietnam
200 300 (0.15%),
400 Samoa500 (0.26%),
600 and700the Seychelles
800
(0.27%) have only been allocated finance for one project each, for amounts far below the average,
putting them
Figure in the last
1. Regional place in the
distribution geographical
of tourism financeranking
allocatedofbytourism finance
the World allocated by(Figures
Bank (2016–2019) the WB.
Taking into
expressed accountofthat
in millions almost
dollars). half of
Source: those classed
Authors’ as financially
own based on World Bankexcluded are concentrated in
data [15].
Bangladesh, China, India, Indonesia, Mexico, Nigeria, and Pakistan [12], the WB shows that it is
This geographical
working–partly and notdistribution
100%–with iscountries
broken down by country
with the highest ratein Figure 2.
of unbanked people.

Zambia 17.00
Vietnam 3.00
Uzbekistan 100.00
Tajikistan 30.00
Tanzania 150.00
Seychelles 5.29
Senegal 74.00
Samoa 5.00
Papua New Guinea 20.00
Pakistan 139.00
OECS Countries 26.00
Mozambique 49.50
Maldives 20.00
Madagascar 70.00
Lesotho 13.40
Indonesia 300.00
India 40.00
Ghana 40.00
El Salvador 200.00
Congo, Republic of 25.00
Comoros 25.00
China 280.00
Cambodia 70.83
Brazil 73.30
Central Asia 55.00
Albania 121.00
0 50 100 150 200 250 300 350

Figure
Figure 2.
2. Distribution
Distribution by
by country
country of
of tourism
tourism finance
finance allocated
allocated by
by the
theWorld
World Bank
Bank (2016–2019)
(2016–2019) (Figures
(Figures
expressed in millions
expressed in millions of
of dollars)
dollars) Source:
Source: Authors’
Authors’ own
own based
based on World Bank
on World Bank data
data [15].
[15].

The way in(15.37%),


Indonesia which this finance
China is channelled
(14.32%), is through(10.24%)
and El Salvador repayable loans
have (82%) the
received andhighest
non-repayable
level of
credits
tourism(18%). Guarantees
finance are not
from the WB. used
At the by the
other WB
end, when financing
Vietnam tourism(0.26%),
(0.15%), Samoa (Figureand
3). the Seychelles

Guarantees
Non-repayable 0%
finance
18%
Lesotho 13.40
Indonesia 300.00
India 40.00
Ghana 40.00
El Salvador 200.00
Congo, Republic of 25.00
Comoros 25.00
Sustainability 2020, 12, 285 China 280.00
8 of 21
Cambodia 70.83
Brazil 73.30
(0.27%) have only Central
beenAsiaallocated finance55.00 for
one project each, for amounts far below the average,
Albania 121.00
putting them in the last place in the geographical ranking of tourism finance allocated by the WB.
0 50 100 150 200 250 300 350
Taking into account that almost half of those classed as financially excluded are concentrated
in Bangladesh, China,
Figure India, Indonesia,
2. Distribution Mexico,
by country of tourism Nigeria,
finance and
allocated Pakistan
by the [12],
World Bank the WB(Figures
(2016–2019) shows that it is
working–partly and not 100%–with countries with the highest rate of unbanked
expressed in millions of dollars) Source: Authors’ own based on World Bank data [15]. people.
The way in which this finance is channelled is through repayable loans (82%) and non-repayable
credits (18%).The way in which
Guarantees arethis
notfinance
usedisbychannelled
the WB whenis through repayable
financing loans (82%)
tourism and non-repayable
(Figure 3).
credits (18%). Guarantees are not used by the WB when financing tourism (Figure 3).

Guarantees
Non-repayable 0%
finance
18%

Repayable finance
82%

Sustainability 2019, 11, x FOR PEER REVIEW 8 of 20


Figure 3. Types of finance used by the World Bank in its financing of tourism (2016–2019) Source:
Authors’ own
Figure 3. based
Types on World
of finance used Bank
by thedata [15].
World Bank in its financing of tourism (2016–2019) Source:
Authors’ own based on World Bank data [15].
All the projects analyzed include tourism among the main sectors affected. However, each
All the
project also projects analyzed
influences include tourism
other fundamental among
sectors the mainthe
to achieve sectors
WB’saffected.
goals. InHowever, eachproject has a
fact, each
project also influences other fundamental sectors to achieve the WB’s goals. In fact, each project has
percentage of that project linked to each sector. Figure 4 is based on this information.
a percentage of that project linked to each sector. Figure 4 is based on this information.

0.60%
Social protection 1.27%
0.18%
Banking 0.04%
0.26%
Transport 9.83%
1.38%
Fishing 0.22%
0.96%
Trade and industry 2.42%
0.15%
Capitals markets 1.29%
17.71%
Central government administration 0.91%
0.14%
Literacy and teaching 0.32%
3.41%
Public administration 6.52%
3.40%
Tourism 48.98

Figure 4. 4.Sector
Figure Sectordistribution offinance
distribution of financeallocated
allocated to projects
to projects thatthat influence
influence the tourism
the tourism sector (2016–2019)
sector (2016–
2019) Source:
Source: Authors’ Authors’ own based
own based on World
on World Bankdata
Bank data[15].
[15].

Hence,
Hence, ofof thisfinance,
this finance,almost
almost 50%
50% affects
affects tourism
tourismdirectly,
directly,and
andthetheother halfhalf
other is distributed
is distributed among
among different sectors that indirectly affect tourism.
different sectors that indirectly affect tourism.
The financing of tourism carried out by the WB is channelled fundamentally to the sectors of
The financing of tourism carried out by the WB is channelled fundamentally to the sectors of
subnational government administration (17.71%), transport (9.83%) and public administration
subnational
(6.52%). government administration (17.71%), transport (9.83%) and public administration (6.52%).
In In
fact, the
fact, thepublic sectoriningeneral
public sector general (public
(public administration,
administration, central
central and and subnational
subnational government) government)
receives 25.14% of the total finance, distributed among 30 projects. This aspect is justified,
receives 25.14% of the total finance, distributed among 30 projects. This aspect is justified, as detailed as detailed
in the
in the next
next section,when
section, when analysing
analysing the
theresults of of
results thethe
tool, sincesince
tool, 31 of31
theof32the
projects are allocated
32 projects to
are allocated to the
the public sector.
public sector.
Furthermore, the issues that guide the execution of projects that influence tourism, financed by
the WB, are represented in Figure 5.

Social Development and Protection 9.38%


Economic Policy 18.75%
Public sector management 12.50%
The financing of tourism carried out by the WB is channelled fundamentally to the sectors of
subnational government administration (17.71%), transport (9.83%) and public administration
(6.52%).
In fact, the public sector in general (public administration, central and subnational government)
receives 25.14%
Sustainability of285
2020, 12, the total finance, distributed among 30 projects. This aspect is justified, as detailed
9 of 21
in the next section, when analysing the results of the tool, since 31 of the 32 projects are allocated to
the public sector.
Furthermore, the
Furthermore, the issues
issues that
that guide
guide the
the execution
execution of
of projects
projects that
that influence
influence tourism,
tourism, financed
financed by by
the WB, are represented in Figure
the WB, are represented in Figure 5. 5.

Social Development and Protection 9.38%


Economic Policy 18.75%
Public sector management 12.50%
Urban and rural development 87.50%
Human development and gender 68.75%
Finance 25.00%
Private Sector Development 78.13%
Environment and Natural Resource Management 81.25%

Figure 5. Distribution
Figure 5. Distribution by
by issues
issues of
of the
the projects
projects that
that influence
influence tourism
tourism financed
financed by
by the
the World
World Bank
Bank
(2016–2019) Source: Authors’ own based on World Bank data
(2016–2019) Source: Authors’ own based on World Bank data [15]. [15].

This thematic was introduced by the WB in 2016 for finance and assistance operations, referring
to the goals and institutional priorities of this institution [15].
The majority of the projects encompass the issues of urban and rural development (87.50%),
environmental and natural resource management (81.25%) and the development of the private sector
(78.13%). Hence, they bear out the arguments put forward by Hawkins and Man [16] that the main
goals of the tourism development projects financed by the WB focus on environmental aspects, but not
on cultural and social questions.
Through the issues corresponding to each of the tourism projects financed by the WB, we can
see the value attached to each of the three dimensions of sustainability. The social dimension has the
lowest weighting, since development and social protection are relegated to last place (9.38%).

4.2. Results of Applying the Tool

4.2.1. Level of Immersion of Financial Inclusion in the Project Development Goals


Each of the projects financed by the WB incorporates a series of goals, and the presence of financial
inclusion is represented in the block of indicators A (Table 2).

Table 2. Indicators of the incorporation of financial inclusion in the project development goals, by sector.

Housing
Ind. Tourism Manufacture Trade Services
Construction
A1.A 25.00% 37.50% 23.53% 20.59% 57.14%
A1.B 18.82% 54.54% 18.09% 22.60% 85.30%
A2.A 6.25% 25.00% 0.00% 5.88% 28.57%
A2.B 10.19% 39.91% 0.00% 5.27% 30.67%
A3.A 21.88% 37.50% 0.00% 20.59% 100.00%
A3.B 20.18% 54.54% 0.00% 22.60% 85.30%
Source: Authors’ own based on World Bank data [15].

Of the total number of projects and finance provided by the WB with regard to tourism, in light of
indicators A1.a and A1.b (Figure 6), 25% of the projects seek to foster financial inclusion, representing
18.82% of the finance allocated.
These percentages are reduced when we focus on goals aimed at fostering access for women
and/or SMEs to credit, especially in the first case.
These values, related with the presence of financial inclusion among the goals of the tourism
projects financed by the WB, indicate an intermediate performance, when compared with other
sectors (Figure 6). Hence, above the tourism sector are the services and manufacture sectors, where
financial inclusion is strongly present among the stated project goals. The performance achieved by
Sustainability 2020, 12, 285 10 of 21
tourism finance, in this regard, is closer to that of the trade and housing construction sectors, with
the latter obtaining the lowest values.

A1 (FI).A ($)
100%

80%

60%
A3 (FI SMEs).B (projects) A1 (FI).B (projects)
40%

20%

0%

A3 (FI SMEs).A ($) A2 (FI women).A ($)

A2. (FI women).B (projects)


Tourism Manufacture Housing construction Trade Services

Figure 6. Indicators
Figure 6. IndicatorsA:
A:Goal: Financial
Goal: Financial inclusion,
inclusion, of women
of women and SMEs.
and SMEs. Source: own
Source: Authors’ Authors’
based own based on
on World Bank data
World Bank data [15]. [15].

These percentages are reduced when we focus on goals aimed at fostering access for women
and/or SMEs to credit, especially in the first case.
These values, related with the presence of financial inclusion among the goals of the tourism
projects financed by the WB, indicate an intermediate performance, when compared with other sectors
(Figure 6). Hence, above the tourism sector are the services and manufacture sectors, where financial
inclusion is strongly present among the stated project goals. The performance achieved by tourism
finance, in this regard, is closer to that of the trade and housing construction sectors, with the latter
obtaining the lowest values.

4.2.2. Scope and Growth of the Portfolio of Finance Recipients and Beneficiaries
This next block of indicators analyses the scope and characteristics of the recipients and beneficiaries
of the finance awarded, studying the composition and evolution of the portfolio of these beneficiaries.
These results can be seen in Table 3.

Table 3. Indicators of the scope and growth of the portfolio of finance recipients and beneficiaries,
by sector.

Housing
Ind. Tourism Manufacture Trade Services
Construction
B1 28 recipients 6 recipients 11 recipients 27 recipients 7 recipients
B2 0.00% 0.00% 0.00% 0.00% 0.00%
B3 0.00% 0.00% 0.00% 0.00% 0.00%
B4 50.00% 100.00% 0.00% 61.76% 71.43%
B5 50.00% 62.50% 0.00% 29.41% 71.43%
B6 100.00% 100.00% 100.00% 100.00% 100.00%
B7 173.81% 0.00% 54.76% −19.02% 16.67%
B8 7.64% 0.00% −5.78% −8.17% −11.55%
B9 1982.02% 3522.00% 3748.44% 6443.52% 3380.79%
Source: Authors’ own based on World Bank data [15].
Sustainability 2020, 12, 285 11 of 21

Since 2016, the WB has financed projects that have an influence on tourism with a total of 28
different recipients (indicator B1), a fairly low number given the size and reach of the WB and the
volume of capital it manages. However, it yields the best value when compared with the other sectors.
In all sectors, indicators B2 and B3 show that, in the portfolio of WB tourism finance recipients,
women and SMEs are not present. Of the total number of recipients, 100% are public bodies or
entities (indicator B6). In this regard, the results do not bear out the arguments put forward by
Chandrasekhar [29], since financing the public sector is the WB’s raison d’être, working together with
the governments of the recipient countries to prepare and implement the development projects, thus
valuing the importance of the latter, as indicated by Carrillo-Hidalgo and Pulido-Fernández [17] and
Tapia [27]. Indicator B4 (Table 3) shows that half of the tourism development projects benefit other
private sector enterprises and entrepreneurs, either directly or indirectly. Indicator B5 goes into greater
detail, signalling that this 50% are SMEs. The rest affect only the recipients themselves, implying a
more limited scope and reach of the finance awarded. Hereof, the performance of tourism finance
puts it below the finance allocated to the services sector, in which 71.43% of projects benefit other
companies and SMEs, and the manufacturing sector, whose indicators show that 100% of the finance
allocated benefits other companies, and 62.50% benefits SMEs. The finance allocated to the trade sector
reflects the best value for indicator B4 (61.76%) and the worst value for B5 (29.41%), in comparison
with tourism. Definitively, finance allocated to the construction sector has the lowest scope and reach
with regard to companies and SMEs (0%).
With regard to the indicator B9, it yields a very high value in all sectors (Table 3). This shows that,
the WB does not allocate finance in adequate volumes to foster financial inclusion in general, because
when the indicator shows a value not greater than 250%, the volume of the funding provided is close
to that of micro-financial institutions (whose method of work is better adapted to the fight against
financial exclusion) [32]. However, when comparing the value of indicator B9 in tourism finance,
it yields a better value, meaning that the volume of its projects is more oriented towards financial
inclusion than in the other sectors.
Finally, the evolution of the portfolio of WB finance recipients is analysed.
The average year-on-year variation rate of the WB portfolio of finance recipients with regard to
tourism the largest when compared to the other sectors, showing a value of 173.81% (Table 3). If we
look at the evolution of this indicator (Figure 7), we see a general decreasing trend, highlighting the
strong growth achieved in the tourism finance portfolio in 2017 over the others.
Sustainability 2019, 11, x FOR PEER REVIEW 11 of 20

Tourism Manufacture Housing construction Trade Services

2016-2017 2017-2018 2018-2019


600%

250%

200%
100%

37.50%

0%

0%

0%
-28.57%

-40%
-50%

-50%
-54.55%
-87.51%
-100%

Figure 7. Evolution of the average year-on-year variation rate in the WB portfolio of finance recipients,
Figure 7. Evolution of the average year-on-year variation rate in the WB portfolio of finance recipients,
indicator B7, by sector (2016–2019) Source: Authors’ own based on World Bank data [15].
indicator B7, by sector (2016–2019) Source: Authors’ own based on World Bank data [15].
The total growth rate in the number of recipients, since the WB began financing tourism, is on
average 7.64% (indicator B8, Table 3), a higher value than the rest of the sectors, which yield negative
or null mean values.

Table 3. Indicators of the scope and growth of the portfolio of finance recipients and beneficiaries, by
sector.
Sustainability 2020, 12, 285 12 of 21

The total growth rate in the number of recipients, since the WB began financing tourism, is on
average 7.64% (indicator B8, Table 3), a higher value than the rest of the sectors, which yield negative
or null mean values.

4.2.3. Volume of Finance


The third block of indicators (Table 4) analyses data related with the volume of finance and
number of projects allocated.

Table 4. Indicators of aspects related with the volume of finance, by sector.

Housing
IND. Tourism Manufacture Trade Services
Construction
C1 69.73 million $ 125.30 million $ 276.45 million $ 242.30 million $ 53.56 million $
C2 61.01 million $ 93.97 million $ 178.88 million $ 192.42 million $ 53.56 million $
C3 55.63 million $ 77.80 million $ 126.45 million $ 152.58 million $ 53.56 million $
C4 0.00% 0.00% 0.00% 0.00% 0.00%
C5 0.00% 0.00% 0.00% 0.00% 0.00%
C6 61.45% 26.60% 7.40% 12.23% 81.30%
C7 99.77% 100.00% 96.76% 100.00% 100.00%
C8 18.82% 54.54% 18.09% 22.60% 85.30%
C9 1.14 projects 1.33 projects 1.54 projects 1.26 projects 1 project
C10 0 projects 0 projects 0 projects 0 projects 0 projects
C11 0 projects 0 projects 0 projects 0 projects 0 projects
C12 235.13% 56.77% 1064.88% 27.59% 85.71%
Source: Authors’ own based on World Bank data [15].

Indicator C1 shows the average amount of finance received by each recipient through tourist
activity. This indicator signals that, since the WB incorporated tourism as a specific sector in the
allocation of finance, 28 recipients (indicator B1) has received finance with regard to tourism, for an
average of 69.73 million (Table 4). As for new recipients (those who have not received tourism finance
previously), the average allocated is 61.01 million euros (indicator C3).
Indicator C2 shows the amount financed per tourism development project, which on average is
55.63 million euros (Table 4).
When comparing these values with those yielded by the other sectors, the average finance per
recipient, per new recipient and project, is less than the other sectors, except the services sector (Table 4).
Indicators C4, C5, C7, C10 and C11 corroborate the results established by B2 and B3, combining
the way in which the WB operates, focusing on financing the public sector.
However, the funds allocated to these kinds of bodies whose objective is financial inclusion
account for 18.82%, a similar proportion to that of the housing construction sector and lower than the
rest, especially when compared with the services sector (85.30%).
The attention given to rural and excluded areas, as highlighted by indicator C6, yields a positive
result, since 61.45% of the total tourism finance allocated is concentrated in these types of territories.
Only the services sector yields a better value in this indicator, with 81.30% of finance aimed at
these areas.
On average, according to indicator C9, each recipient has received finance through just over a
tourism development projects, as it happens with the other sectors (Table 4). This means that finance
is one-off, and a long-lasting relationship that might contribute to the development of the sectors
financed is not established. This aspect is justified by the size of each project, reflected by indicator C2.
rest, especially when compared with the services sector (85.30%).
The attention given to rural and excluded areas, as highlighted by indicator C6, yields a positive
result, since 61.45% of the total tourism finance allocated is concentrated in these types of territories.
Only the services sector yields a better value in this indicator, with 81.30% of finance aimed at these
areas.
On average, according to indicator C9, each recipient has received finance through just over a
Sustainability 2020, 12, 285 13 of 21
tourism development projects, as it happens with the other sectors (Table 4). This means that finance
is one-off, and a long-lasting relationship that might contribute to the development of the sectors
financed is not established. This aspect is justified by the size of each project, reflected by indicator
Year-on-year variation in the tourism finance allocated by the WB is, on average, 235% (indicator
C2.
C12, Table 4) owing,variation
Year-on-year chiefly, in
tothe
thetourism
rate infinance
2017, allocated
following by the launch
the WB is, onof financing
average, 235%for tourism projects
(indicator
in 2016
C12,with
Tableincipient values.to When
4) owing, chiefly, the ratecomparing this the
in 2017, following indicator
launch ofwith otherfor
financing sectors,
tourismtourism
projects is ranked
second, after
in 2016 withthe construction
incipient sector,
values. When which holds
comparing a substantial
this indicator lead,
with other withtourism
sectors, an average year-on-year
is ranked
growthsecond,
rateafter the construction
of 1064.88%, owingsector, which holdstoa the
fundamentally substantial lead,
fact that, with
from an average
2016 to 2017,year-on-year
the finance allocated
growth rate of 1064.88%, owing fundamentally to the fact that, from 2016 to 2017, the finance allocated
to this sector grew by almost 3000% (Figure 8).
to this sector grew by almost 3000% (Figure 8).

Tourism Manufacture Housing construction Trade Services

2016-2017 2017-2018 2018-2019


2946.49%
710.08%

331.20%

257.14%
158.09%
125.88%

11.26%
100%

100%
-100%

-13.29%

-15.96%

-29.83%
-83.04%

-44.56%

Figure 8. Average
Figure 8. Averageyear-on-year variation
year-on-year variation for for
the the
totaltotal tourism
tourism financefinance allocated,
allocated, indicator indicator
C12, by C12, by
sector
sector (2016–2019).Source:
(2016–2019). Source: Authors’
Authors’ own
ownbased
basedon World Bank Bank
on World data [15].
data [15].

TheThe total
total growthrate
growth rate for
for the
thevolume
volumeof of
finance assigned
finance to tourism
assigned is, on average,
to tourism 16.87%. As16.87%. As
is, on average,
with indicator C12, this value positions tourism in second place, behind the housing construction
with indicator C12, this value positions tourism in second place, behind the housing construction
sector (25.86%) (indicator C13, Table 4).
sector (25.86%) (indicator C13, Table 4).

4.2.4. Volume of Finance


Knowing the instruments, characteristics, and ways of channelling development cooperation are
fundamental if we wish to ascertain whether tourism finance fosters financial inclusion. The indicators
included under block D deal precisely with this aspect (Table 5).
Indicator D1, also known as the Herfindahl-Hirschman Index [33], has been adapted to verify the
extent to which the WB concentrates its tourism finance in specific territories, instead of disbursing
funds equitably, without neglecting certain geographical areas. This indicator yields an average value
below 1 in the five sectors, implying a certain degree of dispersion in finance at a country level. On this
basis, tourism finance displays the highest dispersion of finance, with the lowest value obtained for
indicator D1, with regard to the other sectors (Table 5).
The conditions in which finance is allocated should favour a more open financial system and
greater development for those who receive finance, with quick and straightforward procedures, and
instruments tailored to the circumstances of each project and recipient. In the case of repayable finance,
it should be granted with low interest rates, long repayment terms, and grace periods to facilitate
repayment [18,31,34].
The average period taken to approve finance (indicator D2) for the tourism development projects
financed by the WB is nearly fourteen months (Table 5), ranking it second in terms of the longest
approval term of the five sectors analysed, after manufacture.
Sustainability 2020, 12, 285 14 of 21

With regard to repayable finance which, as indicated, is the most widely used instrument by the
WB to finance tourism development projects, as well as in the rest of sectors, finance is offered at
very low interest rates, with very long repayment terms and long grace periods, which favours the
development of the tourist sector, in which investments are usually large.
The average interest rate agreed is 1.04% per annum (indicator D3), with an average repayment
term of 22.5 years (indicator D4) and average grace periods of just over 6.5 years (indicator D5). These
values place tourism finance in an intermediate position, compared with the other sectors, of which
manufacture receives finance at the lowest rate of interest, construction has the longest repayment
terms, and the services sector enjoys the longest grace periods (Table 5).
Hence, the way in which the finance reaches the development projects is also very important.
Indicators D6, D7, D8, D9, D10, and D11 analyse the types and forms of financial instruments used
(Table 5).

Table 5. Indicators of finance characteristics, by sector.

Housing
Ind. Tourism Manufacture Trade Services
Construction
D1 0.003 0.043 0.014 0.004 0.053
D2 13.95 months 15.80 months 12.95 months 10.36 months 6.19 months
D3 1.04% 0.65% 1.11% 1.27% 0.69%
D4 22.53 years 29.10 years 19.36 years 21.46 years 30.83 years
D5 6.67 years 6.17 years 7.03 years 6.58 years 7.78 years
D6 0.00% 0.00% 1.11% 0.00% 0.00%
D7 0.00% 0.00% 0.00% 0.00% 0.00%
D8 17.63% 2.23% 12.56% 8.30% 5.58%
D9 0.00% 0.00% 0.00% 0.00% 0.00%
D10 10.50% 41.24% 14.80% 0.53% 87.48%
D11 29.04% 93.35% 54.64% 3.59% 88.76%
Source: Authors’ own based on World Bank data [15].

The WB has not allocated any emergency finance (indicator D6), destined for events described as
‘difficult and unpredictable’, or any small loans (indicator D7), less than 30% of per capita GDP [31], in
tourism finance.
As indicated above, 82.37% of tourism finance has been channelled through repayable loans,
and the remainder (17.63%) has been carried out by means of donations (indicator D8). Guarantees,
however, have not been used by the WB in financing tourism (indicator D9). The WB has not allocated
any emergency finance (indicator D6), destined for events described as ‘difficult and unpredictable’,
except one financed to the construction sector and carried out in Sint Maarten, nor has it carried out
financing through small loans (indicator D7), less than 30% of per capita GDP [31], in the financing of
any sector analysed.
As indicated above, 82.37% of tourism finance has been channelled through repayable loans, and
the remainder (17.63%) has been carried out by means of donations (indicator D8) (Figure 9). Therefore,
it receives more finance than any other sector through donations, followed by the construction sector.
Guarantees, however, have not been used by the WB in financing these sectors in the period studied
(indicator D9).
These proportions are a reflection of the traditional forms of finance favoured by the WB when
financing development projects, during the period of study, in contrast to the arguments put forward
by Rasheed et al. [22].
Channelling tourism finance through other financial institutions, or through sub-projects, allows a
greater number of recipients to be reached, and also helps to open up the formal financial system [17].
a greater number of recipients to be reached, and also helps to open up the formal financial system
[17].
The WB has channelled 10.50% of tourism finance through financial institutions, and 29.04%
through sub-projects (indicators D10 and D11). These values do not place this sector in a particularly
prominent position; the largest proportion of finance channelled in this way is allocated to the
Sustainability
services2020, 12, 285
sector (indicator D10, 87.48% and indicator D11, 88.76%) and, especially, to the construction 15 of 21
sector (indicator D10, 14.80% and indicator D11, 54.64%) (Figure 9).

Tourism Manufacture Housing construction Trade Services

88.56%
87.48%

54.64%
29.04%
17.63%

14.80%
12.56%

10.50%
8.30%

5.58%

3.59%
0.53%
0

0
D8 - GRANTS D10 - OTRER FINANCIAL D11-SUBPROJECTS
INSTITUTIONS

FigureFigure 9. Indicators
9. Indicators D8,D8, D10,and
D10, andD11.
D11. Financial
Financialinstruments usedused
instruments by theby
WB,
thebyWB,
sector
by(2016–2019).
sector (2016–2019).
Source: Authors’ own based on World Bank data
Source: Authors’ own based on World Bank data [15]. [15].

Table 5. Indicators of finance characteristics, by sector.


The WB has channelled 10.50% of tourism finance through financial institutions, and 29.04%
through sub-projects (indicatorsManufacture
D10 and D11). These Housing
values do notTrade
place this sector in a particularly
Ind. Tourism Services
Construction
prominent position; the largest proportion of finance channelled in this way is allocated to the services
D1 0.003 0.043 0.014 0.004 0.053
sector (indicator
D2 D10,
13.95 87.48% and
months 15.80indicator
months D11,12.95
88.76%)
monthsand, especially,
10.36 monthsto the
6.19construction
months sector
(indicatorD3
D10, 14.80%
1.04% and indicator D11, 54.64%) (Figure
0.65% 1.11% 9). 1.27% 0.69%
D4 22.53 years 29.10 years 19.36 years 21.46 years 30.83 years
D5 6.67 years
4.2.5. Non-Financial 6.17 years
Effort in Financial Inclusion 7.03 years 6.58 years 7.78 years

Technical support and training in project execution are fundamental to achieve the goals of
international institutions, as Kulfas [28] points out. Hence, the indicators grouped under block E seek
to measure this non-financial effort (Table 6).

Table 6. Indicators of non-financial characteristics, by sector.

Housing
Ind. Tourism Manufacture Trade Services
Construction
E1 90.63% 100.00% 100.00% 76.47% 100.00%
E2 53.13% 75.00% 11.76% 41.18% 42.86%
Source: Authors’ own based on World Bank data [15].

The WB strongly advocates this type of support, since 90.63% of the tourism finance allocated has
been granted along with technical assistance, and 53.13% incorporates training activities, either for
members of the team responsible for the project or third parties who benefit from the project. When
comparing these values with those obtained for the other sectors, 100% of the finance allocated to the
manufacture, housing construction, and services sectors is awarded alongside technical assistance.
However, in terms of the training provided, only finance received by manufacture exceeds the level
received by tourism.
This pattern demonstrates the WB’s commitment in the execution of projects, in contrast to the
arguments put forward by Hawkins and Mann [16].
Sustainability 2020, 12, 285 16 of 21

4.3. Standardised Results


Once the results provided by the tool were analysed, a behaviour diagnosis was conducted
for each of the indicators once the data obtained had been standardised, in accordance with the
methodology section.
The standardised results for each of the indicators are shown in Table 7, and for each block, and
the tool as a whole can be found in Table 8.

Table 7. Standardized results provided by the tool.

Ind. Tourism Manufacture Housing Construction Trade Services


A1.A −0.48 −0.30 −0.36 −0.38 −0.02
A1.B −0.60 0.03 −0.46 −0.34 0.44
A2.A −0.85 −0.55 −0.81 −0.68 −0.56
A2.B −0.77 −0.25 −0.81 −0.69 −0.52
A3.A −0.54 −0.30 −0.81 −0.38 0.64
A3.B −0.57 0.03 −0.81 −0.34 0.44
B1 1.55 1.57 1.60 1.73 1.47
B2 −0.98 −1.07 −0.81 −0.80 −1.15
B3 −0.98 −1.07 −0.81 −0.80 −1.15
B4 −0.01 0.73 −0.81 0.37 0.22
B5 −0.01 0.17 −0.81 −0.21 0.22
B6 0.71 0.73 0.84 0.93 0.64
B7 1.34 −1.07 0.19 −1.18 −0.80
B8 −0.82 −1.07 −0.92 −0.96 −1.39
B9 1.55 1.57 1.60 1.73 1.47
C1 1.55 1.57 1.60 1.73 1.47
C2 1.55 1.57 1.60 1.73 1.47
C3 1.55 1.57 1.60 1.73 1.47
C4 −0.98 −1.07 −0.81 −0.80 −1.15
C5 −0.98 −1.07 −0.81 −0.80 −1.15
C6 0.19 −0.51 −0.67 −0.55 0.38
C7 0.74 0.73 0.81 0.93 0.64
C8 −0.60 0.03 −0.48 −0.34 0.44
C9 0.91 1.09 1.31 1.21 0.64
C10 −0.98 −1.07 −0.81 −0.80 −1.15
C11 −0.98 −1.07 −0.81 −0.80 −1.15
C12 1.50 0.07 1.60 −0.25 0.44
C13 −0.64 −0.97 −0.32 −0.74 −1.31
D1 −0.97 −0.98 −0.79 −0.79 −1.04
D2 1.55 1.57 1.60 1.73 1.47
D3 −0.96 −1.05 −0.79 −0.77 −1.14
D4 1.55 1.57 1.60 1.73 1.47
D5 1.55 1.57 1.60 1.73 1.47
D6 −0.98 −1.07 −0.78 −0.80 −1.15
D7 −0.98 −1.07 −0.81 −0.80 −1.15
D8 −0.62 −1.02 −0.57 −0.63 −1.03
D9 −0.98 −1.07 −0.81 −0.80 −1.15
D10 −0.77 −0.22 −0.53 −0.79 0.47
D11 −0.40 0.64 0.19 −0.72 0.49
E1 0.63 0.73 0.84 0.61 0.64
E2 0.04 0.37 0.59 0.01 −0.28
Source: Authors’ own based on World Bank data [15].
Sustainability 2020, 12, 285 17 of 21

Table 8. Standardised results of the tool, by block and overall.

Housing
Tourism Manufacture Trade Services
Construction
Indicators a −0.64 −0.22 −0.68 −0.47 0.07
Indicators b −0.24 −0.46 −0.53 −0.50 −0.52
Indicators c −0.66 −0.83 −0.62 −0.83 −0.75
Indicators d −0.11 −0.02 −0.01 −0.11 0.01
Indicators e 0.33 0.55 0.13 0.31 0.18
Total −0.264 −0.196 −0.344 −0.321 −0.202
Source: Authors’ own based on World Bank data [15].

Almost all sectors, except the services sector, in all blocks of indicators reflect below average
behaviour, with a relative mean value of less than zero in terms of the indicators’ orientation towards
financial inclusion. The only exceptions are the indicators in block E, which measure non-financial effort.
In tourism financing by the WB, since four of the five blocks have mean relative values below
zero for the indicators, the total value of the tool is −0.26. Therefore, it could be said that, in financing
projects that have a direct influence on tourism, since this activity has been considered an independent
sector in which to act, the behaviour and performance of the WB has been below average.
The standardised results by blocks are represented, for each of the sectors, in Figure 10. This
Figure shows that the finance allocated by the WB to tourism stands out with regard to the other
sectors in terms of the size and growth of the portfolio of recipients (indicators B), putting it in second
place when evaluating aspects related with the volume of finance (indicators D), and the non-financial
effort made2019,
Sustainability (indicators E). The
11, x FOR PEER poorest performance is found when evaluating the involvement
REVIEW 17 of of
20
financial inclusion in the development goals of projects (indicators A) and in the characteristics of the
characteristics
finance of the
(indicators D),finance
where (indicators
it is ranked D), where
in the it is ranked
penultimate in the below
position, penultimate position, below
the construction sector,the
in
construction
both cases. sector, in both cases.

INDICATORS A
0.6
0.4
0.2
0
-0.2
-0.4
INDICATORS E INDICATORS B
-0.6
-0.8
-1

INDICATORS D INDICATORS C
TOURISM MANUFACTURE HOUSING CONSTRUCTION TRADE SERVICES

Figure 10. Standardised


Standardisedresults
resultsofofthe
thetool, byby
tool, block. Source:
block. Authors’
Source: ownown
Authors’ based on World
based BankBank
on World data
data
[15]. [15].

On account of the volume and projects considered, in addition to the medium-term period
analysed, we are unable to corroborate the arguments put forward by Carrillo-Hidalgo and Pulido-
Fernández [17] about the relevance or otherwise of the efforts made by the WB with regard to
financial inclusion in its financing of tourism. However, a ranking can be established based on the
Sustainability 2020, 12, 285 18 of 21

On account of the volume and projects considered, in addition to the medium-term period analysed,
we are unable to corroborate the arguments put forward by Carrillo-Hidalgo and Pulido-Fernández [17]
about the relevance or otherwise of the efforts made by the WB with regard to financial inclusion in its
financing of tourism. However, a ranking can be established based on the total value obtained with
the tool used, presenting in descending order the efforts made by the WB to foster financial inclusion
when allocating finance to each of the sectors. The classification is as follows:

1. Manufacture (−0.196).
2. Services (−0.202).
3. Tourism (−0.264).
4. Trade (−0.321).
5. Construction (−0.344).

When awarding finance to these five sectors, the WB is underperforming with regard to the
average, making the greatest effort to promote financial inclusion in relation to the manufacturing
sector, with tourism occupying an intermediate position.

5. Conclusions
In this research paper, a descriptive analysis has been conducted of the efforts made by the WB in
financing tourism, and the tool developed by Carrillo-Hidalgo and Pulido-Fernández [18] has been
applied to development projects financed by the WB since 2016, in the sectors of tourism, manufacture,
housing construction, trade and services, drawing comparisons between them, after typing the results,
and establishing a ranking in accordance with the efforts made to promote financial inclusion as
determined by the results. Therefore, the research objectives have been met.
The management of natural resources and the environment and the development of the private
sector, the human factor and gender issues, as well as the urban and rural nature of the destinations
financed are the factors that define this tourism finance agenda, leaving economic policy and
development and social protection in the background.
When applying the tool utilised we see that, of all the sectors analysed, tourism does not lead
the rankings in terms of promoting financial inclusion among the development goals of the projects
financed, and in fact it is ranked below all the sectors analysed in this article with the exception of
housing construction.
These tourism development projects receive a high volume of finance, allocated to national
governments, as one-off financing facilities, by means of repayable loans under more favourable terms
than the prevailing market conditions. The conditions and characteristics of the finance allocated to
tourism are not the best, compared to other sectors, such as those enjoyed by development projects in
the services sector, which are ahead of the other sectors.
Population sectors that are generally more excluded from the formal system, such as SMEs and
women entrepreneurs, are not always the ultimate beneficiaries of these projects, which would give
rise to greater empowerment of excluded groups [21] and have a major impact on development and
financial inclusion in developing countries. Indeed, tourism SMEs are one of the fundamental pillars
in sustainable tourism development. However, when comparing performance with regard to the
portfolio of beneficiaries, tourism outperforms the other sectors analysed.
The WB has a whole host of resources and instruments to disburse finance. Yet, when it comes to
tourism, it focuses on repayable finance, with grants relegated to the background. Even so, tourism
receives the highest level of finance of any sector through donations.
Financial support provided by means of guarantees, a low-cost instrument that offers development
and self-sufficiency to those under guarantee, has not been used for any of the sectors during the
period analysed.
The location of tourism development projects, however, does show a certain criterion oriented
towards financial inclusion, since rural and excluded areas receive close to 61.45% of the finance
Sustainability 2020, 12, 285 19 of 21

allocated, a value exceeded only by the services sector, and half of the countries considered to be
among the most financially excluded in the world receive the highest levels of finance.
With regard to non-financial effort, the WB focuses not only on supporting these projects financially,
but also provides technical assistance and training in the majority of projects financed, which makes
them more effective and efficient. In this aspect, finance allocated to tourism occupies secondary
positions, in comparison with the non-financial effort made for the rest of the sectors analysed.
Finally, a ranking has been established according to the value yielded by the tool used to measure
efforts made by the WB with regard to financial inclusion when financing development projects
between 2016 and 2019, with tourism occupying an intermediate position (ranked three out of five).
Therefore, tourism financing, with a total value obtained with the tool of −0.264, the Hypothesis 1 is
validated. This score is an intermediate value between the one obtained by manufacture financing
(−0.196), with the greatest orientation towards financial inclusion, and construction financing (−0.344),
which shows the least behavior in this regard.
Taking into account the results of the tool achieved by indicator blocks, the worst values obtained
by tourism financing are attained in indicators A and D. Thereupon, the WB should improve its
behavior, when financing tourism, giving greater consideration to financial inclusion among the
development goals of projects and awarding finance in accordance with criteria and conditions that
are more geared towards financial inclusion. Therefore, this statement validates the Hypothesis 2, thus
confirming the two starting hypotheses.
The findings of this research are important for managers of development projects and international
development bodies, since they provide important research about aspects that need to be emphasised
in order to improve performance aimed at promoting financial inclusion when financing development
projects, particularly in tourism, which would afford such bodies greater efficiency and efficacy in the
achievement of their poverty reduction and development goals.
In the future, this analysis could be combined with the WB’s performance in tourism financing,
studying the project evaluation reports, and broadening the comparison to other sectors over a longer
period of time.

Supplementary Materials: The following are available online at http://www.mdpi.com/2071-1050/12/1/285/s1,


Table S1: Projects funded by the WB in tourism, trade, services, housing construction and manufacture (2016–2019).
Author Contributions: Conceptualization, J.I.P.-F.; methodology, I.C.-H.; formal analysis, I.C.-H.; investigation,
I.C.-H.; resources, I.C.-H.; data curation, I.C.-H.; writing—original draft preparation, I.C.-H.; writing—review and
editing, J.I.P.-F; visualization, J.I.P.-F; supervision, J.I.P.-F; project administration, I.C.-H. and J.I.P.-F. All authors
have read and agreed to the published version of the manuscript.
Conflicts of Interest: The authors declare no conflict of interest.

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