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Indebtedness of the Tourism Sector in Mediterranean Countries

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  • DaÅ¡a FarÄ nik
  • Kir KuÅ¡Ä er
  • Domen Trobec

Abstract

Although the economies of Mediterranean countries were very negatively affected by the global and financial crisis, little attention has been devoted to their sector-specific performance, especially tourism. Tourism is a key sector in these countries, so the consequences of the crisis should be explored and tools to improve the sector's performance provided. This paper therefore focuses on the influence of the indebtedness process on tourism sector performance in selected Mediterranean countries (Bosnia and Herzegovina, Croatia, Greece, Italy, Macedonia, Montenegro, Portugal, Serbia, Slovenia and Spain). Using data from firms' financial statements for 2006–2010, the tourism sector is compared to all non-tourism sector with a focus on the indebtedness process and the functioning of the financial accelerator as the key obstacle to future performance. Furthermore, the paper investigates investments in core activities and financial assets as the main drivers of debt accumulation in the boom and bust periods.

Suggested Citation

  • DaÅ¡a FarÄ nik & Kir KuÅ¡Ä er & Domen Trobec, 2015. "Indebtedness of the Tourism Sector in Mediterranean Countries," Tourism Economics, , vol. 21(1), pages 141-157, February.
    • Handle: RePEc:sae:toueco:v:21:y:2015:i:1:p:141-157
    DOI: 10.5367/te.2014.0441
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    References listed on IDEAS

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    Cited by:

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    2. Barbara Novak & Luca Sensini, 2024. "Determinants of Capital Structure in the Hospitality Industry: Empirical Evidence," International Journal of Business and Management, Canadian Center of Science and Education, vol. 19(6), pages 188-188, December.
    3. Victor Motta, 2017. "Are SMEs in the hospitality industry less likely to experience credit constraint than other industries in the service sector? Evidence from Latin America," Tourism Economics, , vol. 23(7), pages 1398-1418, November.
    4. Luís Pacheco & Fernando Tavares, 2017. "Capital structure determinants of hospitality sector SMEs," Tourism Economics, , vol. 23(1), pages 113-132, February.
    5. Martin Falk & Robert Steiger, 2018. "An Exploration of the Debt Ratio of Ski Lift Operators," Sustainability, MDPI, vol. 10(9), pages 1-16, August.

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