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This study aims to assess the role of financial institutions in promoting tourism entrepreneurship in the state of Kerala; Kerala is a brand of Indian tourism and the destiny of world tourism. The study highlights the acumen behind the promotion of tourism entrepreneurship, tourism opportunities in Kerala and identifies the role of financial institutions in exploring tourism opportunities with the primary data sourced from 222 tourism entrepreneurs of Kerala. The study found that financial institutions significantly assist tourism enterprises in asset creation. Further, the findings reveal a positive association between financial assistance in the innovation of recreation facilities and a stimulus to start enterprises in the tourism sector. The study provides deeper insights to managers and academicians that the financial institutions should extend credit to the tourism industry as Priority Sector Lending (PSL) along with other prime lending sectors.