Sources of Funding in Travel and Tourism Industry

This article discusses the various sources of funding in the travel and tourism industry, including loans, retained earnings, equity financing, debt financing, small scale tourism, and tourism information points. It explains how these sources of funding are used to finance capital projects and support the growth of the industry. The article also highlights the importance of the European Social Fund in providing employment opportunities in the sector.

Loans – loan is the lending of money from an individual, or an organization etc. They are the external sources of the fund where they get
accumulated from the borrowings performed by the company by giving collateral security to the loan providing organizations. It is the fastest
and easiest way to accumulate funds. The only this is required that company has to pay interest which is fixed by the loan providing institution.
Loans are of two types loans, long term loans and short term loans. Short term loans are undertaken for the shorter period for the good
allocation of resources while long term loans are those which are taken for the long period. Capital projects are longterm projects so for this long
term loans are taken. Loans – loan is the lending of money from an individual, or an organization etc. They are the external sources of the fund
where they get accumulated from the borrowings performed by the company by giving collateral security to the loan providing organizations. It
is the fastest and easiest way to accumulate funds. The only this is required that company has to pay interest which is fixed by the loan providing
institution. Loans are of two types loans, long term loans and short term loans. Short term loans are undertaken for the shorter period for the
good allocation of resources while long term loans are those which are taken for the long period. Capital projects are longterm projects so for
this long term loans are taken.Retained earning – Retained earning are the profits. Every organization works for the profit. There main goal is to
maximise their profits. Profits that are earned are also used as a source of fund in capital projects. Some amount profit is reinvested to the
business so that if there is any emergency that profit can be use.
Sources of funds which are available for capital projects
National Lottery commission:
Its abbreviation is known as NLC which is considered as very essential and
effective source of funding which helps in giving finance to tourism industry in very
effective aspect. The players who shows keen interest in lottery and interest is
safeguarded in appropriate manner are protected by commission. It is very vital concept
which will be providing protection and in context of outcome, players will be
safeguarded and there is huge possibility of playing fair game. It will be ensuring that
underage players are not permitted in such types of games and along with this it creates
surety about funds which are routed in perfect manner.
European Social Fund: Its abbreviation is known as ESF whose objective is to impart the best employment
and career opportunities to all employees. There has been investment on capital projects which is according
to local basis. The ESF is most important concept in travel and tourism sector as it provides better
employment to European community in very ease manner. In the same series it helps in allocating it funds in
very appropriate manner and in terms of outcome it provides best career opportunity to its citizens
Equity financing: It is one of major source of funds which is especially used by big organizations for
increasing there finance by selling stock in very effective manner in specific market and it collects funds in
particular aspect. It can be easily meant that any organization can accomplish its finance which is desired by
selling its shares in very effective manner with its full possibilities. It is termed as very helpful source for
increasing finance as it does not have any obligation for arising repayment about any interest as it is not
similar to debt. It can be also applicable for getting fund for accomplishing about operational activities.
Debt Financing:
Huge funds has been given by creditors to travel and tourism
business as it has ability to carry out its all activities in effective manner.
Indebtedness has been carried out in terms of loan which is repaid
accordingly. There is also requirement of paying principal amount along with
accrued interest. In other words it can be articulated that organization is
required to pay debt and interest together. It is termed as one of most cheap
source of fund for business of travel and tourism. In the context of
operational task, firm can easily accomplish it by optimising its debt finance
is appropriate manner.
Small scale tourism: It is considered as very essential for enhancing so that travel and tourism
business will be attaining its profits in very ease manner. The government will be giving grants in
which tourism on basis of small scale will be creating ability for earning profits. Its major
requirement is used for exploring rural areas and profits will be accomplished by guests. So in the
same series government will be providing finance for encouraging and enhancing tourism industry
in nation.
Tourism Information point: Its abbreviation is known as TIP which is very effective for passengers
which is used for assisting in exploring number of destinations in very specific manner. It can be
indicated that queries of customer are solved with reference of TIP so it will be creating ability to
freely roam and travel to different destinations. There should be specific contact TIP as there is
absence of knowledge in context of new city and problems should be solved very effectively. All
the guests will be assist by customer care executive so they will be able to explore whole city with