Diagnosis of Administrative and Financial Processes in Community-Based Tourism Enterprises in Ecuador

Bertha Cecilia Jaramillo-Moreno, Irene Paola Sánchez-Cueva, Dayana Gisell Tinizaray-Tituana, Juan Carlos Narváez, Enrique Armando Cabanilla-Vásconez, María José Muñoz Torrecillas and Salvador Cruz Rambaud
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Bertha Cecilia Jaramillo-Moreno: Carrera de Turismo Ecológico, Universidad Central del Ecuador, Av. Universitaria, Quito 170129, Ecuador
Irene Paola Sánchez-Cueva: Carrera de Turismo Ecológico, Universidad Central del Ecuador, Av. Universitaria, Quito 170129, Ecuador
Dayana Gisell Tinizaray-Tituana: Carrera de Turismo Ecológico, Universidad Central del Ecuador, Av. Universitaria, Quito 170129, Ecuador
Juan Carlos Narváez: Carrera de Turismo Ecológico, Universidad Central del Ecuador, Av. Universitaria, Quito 170129, Ecuador
Enrique Armando Cabanilla-Vásconez: Carrera de Turismo Ecológico, Universidad Central del Ecuador, Av. Universitaria, Quito 170129, Ecuador
María José Muñoz Torrecillas: Department of Economics and Business, Universidad de Almería, La Cañada San Urbano, s/n, 04120 Almería, Spain

Sustainability, 2020, vol. 12, issue 17, 1-17

Abstract: In recent years, community-based tourism has become a source of income within indigenous and rural communities, either as a principal or complementary activity. However, the management of the administrative and financial processes of this type of enterprise was unknown. In this sense, this paper aims to analyze the state of these processes within the so-called Community-Based Tourism Enterprises (CBTEs) in the provinces of Pichincha, Napo, and Imbabura (Ecuador). For this purpose, a matrix was designed to collect information on the administrative and financial processes that an enterprise should have, detailing all their elements with their respective assessment. Also, an interview was administered to the 28 community leaders (one for each CBTE) to diagnose each issue of business management. In this diagnosis, it was concluded that, despite having a certificate from the Ministry of Tourism (MINTUR), the Community-Based Tourism Enterprises have not implemented important administrative and financial processes such as a strategic plan, operational plan, market study, cost analysis, process manual, market plan, initial situation, results status, final status, or financial indicators. Therefore, in the long term, this leads to poor management of business resources, which can result in the closure of these enterprises.

Keywords: administrative process; community-based tourism enterprises; financial process; tourism enterprises (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:12:y:2020:i:17:p:7123-:d:407111

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