Finance and Funding in the Travel and Tourism Sector

Finance and Funding in Travel and Tourism
Concept of funding is given by the Ministry of
department for welfare and growth of tourism industry.
Number of sources are available in this context which
are as follows:
Role of culture, sports and media: This is
helpful in promoting valuable thing, developing
campaign and many more. In case of tourism, it comes
under the responsibility of government to protect the
culture and artistic heritage. Further make the places
more effective and better with help of innovation is also
come under the responsibility of government. Further,
tourism department is the one which encourage
individuals to take part in various heritage development
programmes and cultural places.
Capital project:
 This indicate invest huge amount of funds require
for introduce changes in project and for
development. It involves acquisition of land, buy
property and lease equipment’s. For promote
travel and tourism sector and to generate more
number of profits, capital project is necessary as
this require invest more funds in promotional
activities. Various type of capital budgets is there
related with travel and tourism sector.
 Project related with the cross railway give
contribution in economic development of country
All this help in development of transportation and
this results in a big change.
 Tourism information centre is the one which
remain responsible to offer attractive and
convenient destinations to visitors.
Sources of finance in travel and tour industry are as
follows:
 Pubic finance: In this government of country,
play a big role in contribute more in economy.
Government provides funds to ensure
development of various places so it can attract
large number of visitors and can generate more
number of profits.
 Debenture: This is known as economic mode of
finance as compare to equity because it does not
provide any kind of control to investors.
 Equity shares: This share is popular and one of
the most common mode of finance for large
businesses. Under this right of ownership can be
shared.
Non-public finance or internal source:
Debt collection: This indicate the money collected by
firm through operating activities such as fee.
Investment of owner: In this, firms start doing
investment in activities related with other sector.
Retained profit: This indicate the amount of profit
which owner kept as a reserve.
Sources of funding for the development of capital projects