Finance and Funding in the Travel and Tourism Sector

FINANCE AND FUNDING IN THE TRAVEL AND TOURISM SECTOR
SOURCES IN TOURISM GROWTH INTERNAL SOURCES
There are various sources through which travel and tourism business
can raised funds for the development of heritage sites and
infrastructure facilities used in attracting large number of customers.
As having adequate funds enable tourism sector to influence the
interest and behaviour of customers through adopting various
promotional strategies and tools. Therefore it is necessarily required for
them to raise funds from different sources after carefully analysed them
in proper manner and select one who agree to provide loan at less rate
of interest. Thus funds can be raised from internal and external sources.
It also important to develop railway facility which help in bringing
large number of customers to their destinations without facing any
difficulties.
Internal sources: In this, the owner can himself arrange funds from
their own capital and retained earnings which help to invest them in
profitable field. Such capital and earnings are those amount which
were retained by owner for facing future difficulties. Retained earning
are the part of the profit which were reserved for paying future
liabilities or debt whereas the owner's capital is those amount which
the owner keep himself for facing future contingencies.

FINANCE AND FUNDING IN THE TRAVEL AND TOURISM SECTOR
External sources: In this, funds are raised through inviting public and
various financial institutions. The authority who is responsible to raise
funds from different sources can select investor or lender who agreed
to provide funds on less rate of interest due to which the financial
position of travel and tourism sector are not much affected. This
involve huge risk as if they earn limited profits and unable to pay
interest amount on the investment then it may faces legal
consequences. Therefore, before raising funds it is necessarily required
to analyse the investment areas from where they get good return. The
department is held responsible to evaluate the benefits and demerits of
different sources which shall be taken into consideration.
EXTERNAL SOURCES OTHER SOURCES
Before raising funds it is essentially required to first decide the period
the funds will be required and on the basis on that, best methods
should be chosen which will bring profitable result to the business.
After raising funds from different sources the next critical decision is
to where such funds to be distributed in order to get positive outcomes
in future. It shall be invested in adopting an effective techniques and
equipment which may helpful for business to achieve growth and
success by attracting large number of customers. Adopting
promotional tools such advertisement on TV, through online, travel
agencies etc. these all required certain amount of money in order to
communicate people about heritage sites and other attractions.