Financial Challenges of Small and Medium-Sized Hotel Enterprises in Şanlıurfa: An Empirical Study

Financial sustainability of small and medium-sized enterprises (SMEs) is a critical component of sustainable tourism development, particularly in emerging tourism destinations. However, SMEs in the hotel sector often face significant financial challenges. This study aims to investigate the financial problems encountered by SME hotels in Şanlıurfa and propose potential solutions to these problems. A structured questionnaire was administered to 42 business owners and managers to assess their perceptions of various financial issues, the use of external financing, access to bank loans, and financial planning habits. The findings reveal high interest rates, foreign exchange rate fluctuations, lack of equity capital, and difficulties in obtaining credit are the most critical financial challenges faced by these companies. In addition, bank loans are the predominant external financing instrument, with a strong preference for short-term credit. Key obstacles to effective bank loan utilization include a lack of transparency, insufficient financial knowledge, and deficiencies in financial documentation. The study suggests that public support should be strengthened to improve financial literacy and planning among SME hotels, offering valuable insights for industry and literature in advancing sustainable tourism.