Understanding the Importance of the Banking System in the Romanian Tourism and Hospitality Industry

Abstract

This chapter aims to provide an exhaustive overview of the importance of banking system in Romanian tourism and hospitality industry. Romania is a member of the European Union since 1 January 2007, but is not a member of the Schengen area and haven't adopted the euro currency yet. The banking system plays an essential role in financial intermediation being a major factor in raising productivity of Romanian tourism and hospitality industry. From a long-term perspective, a global perspective on the banking system can lead to the development of tourism and hospitality business. The interdependence between banking system and the tourism and hospitality industry in Romania is an increasing challenge for public and private investment. However, Romania's tourist attractions are still not capitalized due to the lack of financial investments. The Romanian tourism potential is significant, but the relatively low number of foreign tourists and even indigenous tourists reflects the lack of relevant financial investments and effective promotion.