Small and medium-sized enterprises (SMEs) in tourism and hospitality settings have considerable responsibility for Egyptian economic growth. However, there is a difficulty that SMEs have in accessing the financial system. Based on a shortage in latent studies investigating several issues related to financing tourism and hospitality SMEs in Egypt, the current study filled this research gap and explored the obstacles that small investors and local people are facing. The current study investigated the importance of the originality of tourism and hospitality products, and services, and uncovered the significance of establishing an Egyptian tourism bank for SMEs. Additionally, it developed a causal model that included novel relationships and examined them in the context of Egyptian tourism and hospitality SMEs. A total of 500 questionnaires were distributed to a random sample of SMEs owners who are enrolled in Micro, Small, and Medium Enterprises Development Agency (MSMEDA), the official umbrella of micro, small, and medium projects in Egypt. The number of valid questionnaires was 316. The results indicated that financial institutions do not have a huge willingness to finance tourism and hospitality SMEs. Local people, small investors, and manufacturers need subsidies from the government and assistance to get authentic raw materials to be more able to present original products. There is a problem concerning getting the required loans, and the provision of guarantees. Decision-makers in the Egyptian tourism and hospitality sectors should give more support to SMEs that present authentic products and services reflecting the identity, customs, and traditions of the host community.