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

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  • Bertha Cecilia Jaramillo-Moreno

    (Carrera de Turismo Ecológico, Universidad Central del Ecuador, Av. Universitaria, Quito 170129, Ecuador
    Department of Economics and Business, Universidad de Almería, La Cañada San Urbano, s/n, 04120 Almería, Spain)

  • 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)

  • Salvador Cruz Rambaud

    (Department of Economics and Business, Universidad de Almería, La Cañada San Urbano, s/n, 04120 Almería, Spain)

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.

Suggested Citation

  • Bertha Cecilia Jaramillo-Moreno & Irene Paola Sánchez-Cueva & Dayana Gisell Tinizaray-Tituana & Juan Carlos Narváez & Enrique Armando Cabanilla-Vásconez & María José Muñoz Torrecillas & Salvador Cruz , 2020. "Diagnosis of Administrative and Financial Processes in Community-Based Tourism Enterprises in Ecuador," Sustainability, MDPI, vol. 12(17), pages 1-17, September.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:17:p:7123-:d:407111
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    References listed on IDEAS

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    1. Renaud Lapeyre, 2010. "Community-based tourism as a sustainable solution to maximise impacts locally? The Tsiseb Conservancy case, Namibia," Development Southern Africa, Taylor & Francis Journals, vol. 27(5), pages 757-772.
    2. Andrea Yanes & Seweryn Zielinski & Marlenny Diaz Cano & Seong-il Kim, 2019. "Community-Based Tourism in Developing Countries: A Framework for Policy Evaluation," Sustainability, MDPI, vol. 11(9), pages 1-23, April.
    3. Leanard Otwori Juma & Aniko Khademi-Vidra, 2019. "Community-Based Tourism and Sustainable Development of Rural Regions in Kenya; Perceptions of the Citizenry," Sustainability, MDPI, vol. 11(17), pages 1-23, August.
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    Cited by:

    1. Sebastian Aparicio & Andreu Turro & Maria Noguera, 2020. "Entrepreneurship and Intrapreneurship in Social, Sustainable, and Economic Development: Opportunities and Challenges for Future Research," Sustainability, MDPI, vol. 12(21), pages 1-11, October.
    2. Gricelda Herrera-Franco & Néstor Montalván-Burbano & Carlos Mora-Frank & Lady Bravo-Montero, 2021. "Scientific Research in Ecuador: A Bibliometric Analysis," Publications, MDPI, vol. 9(4), pages 1-34, December.
    3. Carlos Mestanza-Ramón & Rita Lara-Váscones & Demmy Mora-Silva & Celene B. Milanes & Angélica Saeteros-Hernández & Maritza Sánchez-Capa & Angel Cunalata-Garcia, 2022. "Charapa Turtles ( Podocnemis unifilis ), an Opportunity to Improve Community Tourism and Contribute to Their Conservation in Yasuní National Park, Ecuador," Sustainability, MDPI, vol. 14(13), pages 1-13, June.

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