As far as SMEs in China are concerned, they are yet still facing the hurdles in relation to outside financing. Walter (2005) finds that SMEs in China get just 12 percent of their running capital from bank financing and this critical situation of financing SMEs in China can be attributed to various reasons principally unproductive financial structure, banking system deficiency etc.
Tourism is one of the largest and fastest growing industries across the globe. As per the figures given by the World Tourism Organization, the number of international tourists was around 924 million (Avdimiotis et. al, 2009). The rapid growth of this sector can be credited to the globalisation, changing demography and evolution of transportation facilities. However, during the last few years, due to recession, there was a slack in the tourism sector worldwide. People were compelled to cancel their holidays and focus on investments to protect themselves from the harsh effects of the recession. Even in 2011, the world economies are still limping and the tourism sector is pressurised to create demand for business travel and tourism products and services. According to a survey done by The World Travel Market in UK, around 38% of the customers did not take a week long holiday in 2011 and out of those who took a holiday in 2011; around 60 % took only one holiday (World Travel Market Industry Report, 2011). People are having stringent holiday budgets and increasing air fares have led to preference of “staycations” i.e., holidaying within the same city or country. Another trend which has been observed is that tourism consumption patterns change with time. Nowadays, sports tourism is catching up and London Olympics 2012 is being eyed as the biggest sporting event and tourism, hospitality industries are gearing up for it. But if the global outlook is to be considered, international tourism have grown by approximately 5 percent in the first two quarters of 2011 (UNWTO World Tourism Barometer, 2011). This is a positive sign for the EU tourism sector as well as Europe is the most preferred holiday destination. Supply is ample but the slowdown in demand for tourism products is a concern but with group tours and off season discount offers can be of some help in generating some demand both from domestic as well as international travellers.