Sources and Distribution of Funding for Capital Projects in Tourism

This document discusses the sources and distribution of funding for the development of capital projects in the tourism sector. It explores public and private funding, government expenditure, venture capital, and various sources of finance in the industry.

Sources and distribution of funding for the development of capital projects
Finance and Funding In Travel and Tourism
Funding is crucial concept which is provided by the welfare and
development of tourism sector. The funds can be distributed in
following areas-
Department of culture, media and sports – There can be
development, growth of tourism sector and there is promotion of
crucial aspects which are needed in tourism sector. This helps in
protecting the culture, heritage and individuals through the
sources of funds and innovative ideas. Through this there is
growth and development of the tourism sector. Media plays a
crucial role in promotion of the culture and other features of the
tourism sectors. Media can promote the media through the
communication tools such as newspaper and magazines. By
investing the funds in culture, media there is growth and high
promotion of the tourism sector. Thus many customers can be
attracted towards the place. So funds can be invested in this
sector.
Capital projects- In this there is investment in the development
of projects. It requires the capital and labour to complete an
activity. This also involves purchasing of the asset, land, property
or any new equipment. Thus are crucial for the promotion of the
tourism sector.
Cross railway projects- It helps in development of the economy
of different regions by promoting the tourism in rural sectors.
There can be summer rides through the historical trains and thus
there is development of the transportation.
Tourism information centre is that which provides information
about the different places of visiting to the customers.
Heritage place are the various places which includes different
information communicated to the travellers such as Education Park
such as museum. This includes the role, nature, origin of the goals
which are based on personal and non-personal methods. Integrated
foot print development in different regions helps the individuals
and companies to put feet in right way and direction so that there
can be growth in tourism sector. There can be continuous
improvement in the sector to increases the profits and productivity.
There are basically 2 sources of the finance in the tourism sector
(Turner, 2010). They are-
Public finance – In these funds can be raised by the government.
It involves the expenditure by the government to raise the funds.
Venture capital – After evaluating the company when the capital
is invested in the primary or first stage.
Debentures – In this there is no control with investors and is the
cheapest source of finance as compared to the equity shares.
Equity shares – It is major source of finance and it is mostly used
by the bigger companies.
Internal sources of finance or non-public finance-
Owner’s investment – It is the capital which is invested in starting
the enterprise. This capital is invested by the owner.
Retained profits – It is the reserve which is not included in profits
and they are kept for the future activities of the enterprise.
Debt collection – It is the amount of money which is collected
from the debtors, running for fees or can be the percentage of the
capital which is invested in business
Sources and distribution of funding for public and private
tourism