Finance and Funding in Tourism Industry

This article discusses the importance of financing and managing financial resources in the travel and tourism industry. It explores the sources of funding for both public and private tourism and their impact on the development of the industry. The article also highlights the role of government in promoting rich and heritage culture through funding and investment.

Finance and Funding
Sources and distribution of fund for both public and private tourism
INTRODUCTION
Financing and managing the financial resources is
crucial for every business. Organization can reduce unit
cost to provide good quality of products and services to
customers. If they fail to give better facilities, then they
cannot manage their business and face huge problems.
Travel and tourism industry is continuously growing
over these years. They use less cost to earn more profits
and for its expansion. Funds are considered as the most
essential element of business enterprise for its further
expansion and development. Most of the business
enterprise is managing their fund own their own while
others are ruling the market through the support of
government bodies. Ministry of Tourism Department
provides adequate funds to travel industry. Both
heritage and cultural safeguards plays prominent role
towards generating sufficient fund via providing best
services and experience to its target customer. This is
probably because it helps in stimulating the interest of
large number of customer towards rich and heritage
culture of the country. Every country or region has its
own story of development or origin which becomes the
reason for visitors to travel their city or county. The first
priority of government is to promote their rich culture
via travel and tourism industry. By doing this, they are
simply supporting the growth and development of their
country as compared to other neighbouring countries.
In-fact with technology innovation they are effectively
using different media channels via which they are
promoting their culture and attracting large number of
customers.
Capital Projects: These are mainly related with heavy
investments as they provide long term benefits.
Government usually spend such huge amount on
projects like railways, roads, airport that indirectly
promote the tourism industry. They also deal with
managing day to day operation and working capital of
the firm in an effective and efficient manner.
In case of travel and tourism sector, such type of
investment plays significant role as it attracts the
visitors and secondly enhance the overall development
and growth of that particular country. Government are
spending huge amount on restoration of historical
places, museum, national park, cross railways etc. as
these are the places that attract the large number of
visitors who will contribute significantly towards the
development of country.
Public Finance: It mainly deals with roles and
responsibility in terms of promoting rich and heritage
culture of particular country. Government are spending
huge amount on the development of various sectors
such as airlines, roadways, railways that brings visitors
or travellers in the country. Basically it defines the role
of government towards developing the economy. They
collect revenues and expenditure from the general
public in terms of taxes.
Venture Capital: These are often categorized as small
investment which are mainly invest or utilize by
entrepreneur during their initial phase of business.
Equity Shares: These are mainly used by firm in to
borrow large number of money from general public by
providing them shares of the company and make them
as a shareholder of respective organization. This is
considered as the most convenient way to gather or
arrange huge funding.
Debentures: These are categorizing as long term
security on which company is yielding fixed interest
rate. These are normally issued by company against
their assets.
Owner’s Capital: These are considering as those
capital which owner spend in business on their own.
There is no limit on this it depends upon the credibility
and goodwill of owner as how much money he possess.
This capital plays important role as it assist in
managing the funding and day to day operations of
company during its initial phase.