finance and funding in travel and Tourism sector

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FINANCE AND FUNDING AND TRAVEL AND TOURISM
Sources and distribution of funding for the development of capital projects of tourism sector
Tourism sector needs to be developed by government of
country, therefore they have implemented number of
capital projects. There provide financial assistance to this
sector. To start something new finance or initial capital is
required by any kind of business whether to operate in
small scale or large scale. There are number of steps taken
to provide aid to this field some are discussed below:
Financial helps available to Venture projects: This is the
innovative step taken in supplying suitable amount of
capital to these new businesses.
Issue of Debentures: This is consider one of the most
important source of finance for any business. There are
other sources like issue of equity and preference share.
Public Finance: Under this source government provide
assistance to this business enterprise. Sale of many shares
are carried out to acquire finance at significant level.
Capital Projects: Every business needs large amount of
finance in form of capital that is to be invested in business
operations. There are number of related activities that
require finance in many forms. It is responsibility of
government institutions to promote tourism at maximum
level. Hence, need of capital projects arises to full fill
such wants. This add worth in these businesses.
Effective transportation facilities are laid down in
regards to develop tourism sector. Tourism sector
always concentrates improving their transportation
facility as it is directly linked to concept of accessibility
of visors to that place. If that particular place does not
have proper transportation system that will pose a bad
impact on tourism company.
Above discussed sources are of external nature . There
are number of internal sources available too:
Proprietor's capital: This capital is invested by the
businessman himself. Every business require some
initial capital that is invested by owner in order to
initiate the working of organisation. Hence, it is
regarded as important internal source of raising finance.
Preserved profit: It is also known as retained profit.
Under this procedure every institution separate out
some funds out of their earnings which is kept as
retained this is used in future if some unfavourable
condition occurs.
Collection of blocked funds: It may be possible that
business have to sell their products or goods in debt.
Hence, there is accumulation of blocked finance. There
are number of Debtors or some amount of fund engaged
INTRODUCTION SOURCES OF FUNDS