Contribution of Commercial Bank Services on the Growth of Hospitality Industry in Rwanda Case of Kigali's Five-stars Hotels

Abstract

This study aimed to assess the impact of commercial bank services on the growth of the hospitality industry in Rwanda. Employing a descriptive research design, a census was conducted on 129 employees within the Rwandan hospitality sector. Primary data were gathered through questionnaires, supplemented by a documentary review for secondary data. In Table 4.6, the study revealed that 'short-term commercial loans' (ranked first at 2.75), 'long-term commercial banks' (ranked second at 2.55), 'line of credit' (ranked third at 2.41), and 'mortgage' (ranked fourth at 2.20), cumulatively scoring 9.91, signifying the significant contribution of bank lending services to the growth of the hospitality industry in Rwanda. Table 4.7 explored the contribution of commercial bank saving services to the industry's growth. 'Regular savings' ranked first at 2.91, 'long-term savings ranked second at 2.71, 'high-yield savings ranked third at 2.63, resulting in an overall score of 8.25. These findings underscored the substantial impact of commercial bank saving services on the growth of the Rwandan hospitality industry. Examining advisory services in Table 4.8, 'business development' ranked first at 2.86, followed by 'risk management' at 2.77, 'strategic planning' at 2.69, and 'specialization expertise' at 2.54, with an overall score of 10.86. This suggests that commercial bank advisory services significantly contribute to the growth of the hospitality industry. Furthermore, statistical analysis in Table 4.11 demonstrated that the coefficients of commercial bank lending, saving, and advisory services were all statistically significant at the 1 percent level. The high t-statistics (9.420, 6.900, and 6.750, respectively) and negligible probabilities of error (0.000) affirm the statistically significant impact of commercial bank services on the growth of the hospitality industry in Rwanda. Keywords: Banking sector, Hospitality industry, financial intermediation, Restaurant, Kigali City Rwanda