This paper focuses on the main profiles of SMEs (small and medium enterprises) financial structures. The spotlight is on the hospitality and tourism industry. The keys areas of financial and accounting statements are analysed in a comparative studies between several European countries. As well known, the tourism industry is characterized by two different management issues: real estate and industry specific management. While the tourism property management is almost similar to a general real estate management, the specific management is strongly related to the seasonality. The business cycle impact on the financial structure is reasonably significant and the effect on the risk is relevant as well. Therefore, the aim of the research is to recognize the main aspect the accounting and financial data over different countries considering also different sorts of financing (short and long term financing). In fact, the ability to fit the short term financing needs, also called treasury management, requires a specific forecast and control of the cash inflows and outflows. To deal with the specific financial needs is required to set-up a specialized financing facilities. Clearly, mortgages and loans represent the most relevant medium and long term financing instruments. Banking financing is a strongly structured on the SMEs financial requirements. By definition, the bank has developed a strong ability to provide an adequate source of funds. On the other hand, when a bank financing is the most relevant on the liabilities of the firm, it can penalize the growth opportunities. The seasonality of operations impacts on the financing cycle too. The operation management often smoothes the overloaded period using different strategies. Also the cash flow management benefits from a greater accuracy in financial forecasts. The strong seasonality does not imply a severe risk profiles. Several empirical analysis and interviews show how the whole tourism industry has a medium risk level. In addition, SMEs exhibit a lower credit risk profile, in particular when the number of employees is very small. From an empirical point of view, a sample of European tourism SMEs (Hotel and restaurants) is investigated. The accounting data set, related to the period 1999-2002, describes relevant differences between tourism companies across European countries.

Tourism Financials and financial structure: an European comparison.

TORLUCCIO, GIUSEPPE
2004

Abstract

This paper focuses on the main profiles of SMEs (small and medium enterprises) financial structures. The spotlight is on the hospitality and tourism industry. The keys areas of financial and accounting statements are analysed in a comparative studies between several European countries. As well known, the tourism industry is characterized by two different management issues: real estate and industry specific management. While the tourism property management is almost similar to a general real estate management, the specific management is strongly related to the seasonality. The business cycle impact on the financial structure is reasonably significant and the effect on the risk is relevant as well. Therefore, the aim of the research is to recognize the main aspect the accounting and financial data over different countries considering also different sorts of financing (short and long term financing). In fact, the ability to fit the short term financing needs, also called treasury management, requires a specific forecast and control of the cash inflows and outflows. To deal with the specific financial needs is required to set-up a specialized financing facilities. Clearly, mortgages and loans represent the most relevant medium and long term financing instruments. Banking financing is a strongly structured on the SMEs financial requirements. By definition, the bank has developed a strong ability to provide an adequate source of funds. On the other hand, when a bank financing is the most relevant on the liabilities of the firm, it can penalize the growth opportunities. The seasonality of operations impacts on the financing cycle too. The operation management often smoothes the overloaded period using different strategies. Also the cash flow management benefits from a greater accuracy in financial forecasts. The strong seasonality does not imply a severe risk profiles. Several empirical analysis and interviews show how the whole tourism industry has a medium risk level. In addition, SMEs exhibit a lower credit risk profile, in particular when the number of employees is very small. From an empirical point of view, a sample of European tourism SMEs (Hotel and restaurants) is investigated. The accounting data set, related to the period 1999-2002, describes relevant differences between tourism companies across European countries.
2004
Tourism Brands for Competitiveness
G. Torluccio
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11585/19110
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