Financial problems of hotel businesses: The case of Turkey

Abstract

The purpose of this study is to determine and evaluate the financial problems that hotel managers experience. Financial problems are the most crucial of all problems relating to business management since finance-related problems may be obstructive in the resolution of other functional problems. Especially among the problems of SME status businesses financial ones are of special importance. Characteristic features of hotel businesses make financial problems even more challenging. Therefore, an empirical study with a qualitative method was performed in Marmaris, an important center for tourism in Turkey, in order to determine the periodical financial problems that trouble hotel businesses, and, if need be, develop solutions to address them. According to the outcome of this research periodical financial problems are not of great importance. Other insignificant financial problems are: difficulties in debt collection, inadequacy of internal finance sources and inadequate sales income. It may be stated that accommodation businesses do not experience noteworthy financial problems during periods in which the demand for touristic businesses rise. The 2016 decrease of touristic demands in Turkey may extend the scope and significance of financial problems in the future.