Capital Projects for Tourism Development

The assignment content discusses capital projects for tourism development in London, focusing on heritage sites, information points, transportation, expansion of business operations, and environmental improvement. The sources of finance mentioned include issuing shares to the public, bank loans, leasing, government grants (European Social Fund), and funds for construction and maintenance projects.

Capital Projects
Capital projects imply for the one which is highly related to acquisition, development and
improvement of assets such as land, buildings, machinery etc. With the motive to attract large
number of tourism London needs to make focus on the development of heritage sites, tourism
information point and transportation aspects. Along with this, company also requires fund for
the expansion of business operations and functions. In this regard, by taking into
consideration the suitable source of finance business unit can execute the plan more
effectively and efficiently.
It is the place which provides deeper insight to the tourists about the attraction of city.
Further, it also plays a vital role in resolving the queries of the tourists and thereby develops
satisfaction among them. Hence, it is highly required for the firms operated in tourism sector

to lay more focus on the development of information check points. Moreover, effectual
response may result into increase in the high word of mouth publicity and greater tourism.
Source
For making improvement in the tourism information point top or leading and highly
profitable business organization needs to make contribution on it. Thus, by making combine
efforts large business organization of travel sector can get the desired level of outcome or
success.
Project: Expansion
Growth of tourism is highly influenced from the facility which is offered by the hotels
and resorts. The rationale behind this, now visitors go to the place which offers highly
luxurious facility to them. In this, travel firm requires fund for the establishment of hotels &
resorts that offers high quality and luxurious accommodation facility to the customers.
Funding source
Issue of shares

Travel firms can generate fund for the purpose of expansion by issuing shares to the
general public at large. It is the most effective sources that help business units in generating
enough amount of fund for the accomplishment of project. Moreover, usually both existing
and potential shareholders are ready to invest fund in the shares of firm which is highly
growing. In this, business unit is obliged to give dividend to shareholders only when they
earn enough amount of profit.
Bank loan
Companies of travel sector can also meet the financial requirements by taking loan
from the financial institution. In the present era, government encourages financial institution
to offer loan to the growing ventures at concessional rates. Besides this, bank loan provides
benefit to the firm in tax brackets to the significant level. However, in this, business
organization has to repay the amount of on a periodical basis. Thus, such source imposes
monetary obligations in front of the business entity.

Leasing: This is another highly effective source of finance which enables firm to make use of
assets such as land, furniture’s etc. on a rent basis. In this, travel business units can establish
the hotel, restaurant etc. by taking fixed asset on lease. Such source also provides tax
advantage and benefits to the firm. However, in this, company has obligation to make use of
assets according to the terms and conditions of the real owner of assets. Along with this, in
the case of lease business enterprise has to pay rent on a periodical aspect in return of making
use of assets.
Project: Environmental improvement:
Now, government, society and customers are highly concerned with the protection
aspect of environment. In the present time, people prefer to visit the city where no or less
pollution takes place. Thus, business organization of travel sector needs fund to employ the
latest technological aspects for the waste management. This in turn contributes in the green
environment to the large extent.
Source: Government grant
By taking monetary assistance from government companies can make use of the high-
tech instrument for ensuring better waste management. Now, government of UK has taken
several initiatives regarding green environment such as training, identification and
introduction of new technology etc.
Project: Construction

Transportation is also one of another important factor which has high level of impact
on the development of tourism. Moreover, luxury and comfort closely influences the decision
making aspect of customers. Thus, companies of travel sector require fund for the rail, bridge
development and maintenance project.
Source: European social fund
ESF provides financial assistance to the companies which are engaged in the growth
and development of local areas. The main objective of ESF is to enhance the living standard
of people. Further, such fund also focuses on raising employment opportunity to the large
extent. In this, increasing income level may result into high disposable income of the people.
Thus, ESF plays a vital role in developing satisfaction among both inbound and outbound
people.