Finance and Funding in Travel and Tourism Sector

This presentation elaborates diverse kinds of management information needs for the travel and tourism industry and how such kind of management information can contribute for decision making process.

Finance and Funding
in Travel and
Tourism Sector

Table Of Content
 Introduction
 Types of management accounting
 Use of investment appraisal management accounting
information
 References

Introduction
Finance and funding is a crucial concept which is needed
an adequate amount of time and attention by the
business for better growth of the operations and
economy as well. This presentation elaborates diverse
kinds of management information needs for the travel
and tourism industry and how such kind of
management information can contribute for decision
making process.

Types of management accounting
Management accounting assists the manager to gather and
control whole internal working of data consistently so
that if any issues originate thereafter this could resolve
without creating any problems. This is crucial as whole
defaults will influence the firm which are critically
assessed before any penalty.

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Various kinds of
management accounting
is as follows:-
Budget report: whole
expenses which is going
to occur in future are
forecasted and then
documented in the budget
report.

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Financial projections: these are the analysis or the
assessment of future expenses to the business. The
financial projections are essential for the firm in order to
get the unexpected future revenue or the cost.

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Investment decisions: Investment decisions are the
decisions which are connected to the uses of the capital
resources in a manner in order to gain more and efficient
return. Each business requires to be careful at the
determining the investment option for the gaining of the
business.

Use of investment appraisal management
accounting information
Business owners consumes
their funds in the capital
projects ultimately for the
aim of considering return
from it.

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Henceforth, the tools via which diverse capital projects are
assessed form which profits could be earned are mentioned
hereunder:
Payback period: This is frequently implemented by the
small businesses for effective control over the cash flow
instead of the return.

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Accounting rate of return: This demonstrates the
difference between the amounts the business invests to
amount this is accountable to earn profits. This is an easy
approach in order to perform the task effectively.

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Investment risk and sensitivity analysis: Entire risk which
are going to link with the investment which the
investment which is going to made that is going to
properly assessed so that no risk could influence the
growth of the firm.

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Use in decision making process: The MA report is made
by the firm in order to make the decisions in an effective
manner. So that the business can use them so effectively.
However, this is the most effective manner by which the
business can run in an effective manner. By choosing the
best investment project.

References
Nielsen, H. and Spenceley, A., 2011. The success of tourism
in Rwanda: Gorillas and more. Yes Africa Can: Success
Stories from a Dynamic Continent, pp.231-249.
Biggs, D., Hall, C.M. and Stoeckl, N., 2012. The resilience
of formal and informal tourism enterprises to disasters:
reef tourism in Phuket, Thailand. Journal of Sustainable
Tourism. 20(5). pp.645-665.

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