Financing Tourism Businesses in the UK

This assignment examines various financing avenues available to UK-based tourism businesses. It delves into sources like the European Social Fund and Regional Development Fund, highlighting their purposes and benefits for tourism projects. Additionally, it explores alternative funding methods such as issuing shares through an IPO or securing bank loans, considering factors like interest rates and regulatory requirements.

 European social fund: Funds can be raised from the European social fund in order to finance projects that are related
to the tourism business of the UK. This fund was mainly set up to support employment in the European nations. Huge
population of the UK is employed in the travel and tourism business. Hence, funds can be easily obtained from the
European social fund.
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 Regional development fund: Economic regional
development fund is another source from which fund can be arranged for the projects that are related to tourism
business of UK. Mentioned sort of fund was established in order to promote regional cooperation in the Europe. This
fund plays an important role in elevating economic growth of many European nations. The other main aim of this
fund was to increase employment opportunities in the European nations. It can be said that amount can be obtained
from regional development fund which will be invested in the projects related to tourism business of UK.
 Shares: Firms that are of large, middle and small in size can raise capital from the market by issuing shares to general
public and corporate. In order to issue shares in the market firm needs to bring IPO or initial public offer. In order to
bring IPO in the market company need to pass some specific parameters that is set by the SEC. After complying with
all legal formalities firm can issue shares in the market and can raise fund which will be investment in the project
which is related to the tourism business in UK.
 Bank loan: If in any case firm failed to seek approval from the SEC to issue shares in the market bank loan can be
used to fund project. Bank loan is available at fixed and flexible interest rate. Fixed interest rater refers to the static
interest rate at which finance remains same each and every time in the business. Contrary to this, flexible interest rate
is one which never remains same and keeps on changing consistently.