Tourism Development and Capital Projects

This assignment discusses the crucial role of capital projects in improving heritage sites and infrastructure within the travel and tourism industry. It explores various funding sources, including internal options like equity and debt funding, as well as external sources such as loans and overdrafts. The text also delves into government funding initiatives and provides examples like the Santander cycle scheme in London, illustrating how public-private partnerships contribute to tourism development.

Finance and funding in travel and tourism sector
Sources and distribution of findings for public and private tourism development
In travelling business, there is need of development of important
projects so as to improve heritage sites and the infrastructure of the
country should be also improved. Along with this, required
information should be also provided to customers in order to
attaining their interest towards company. In addition, appropriate
funds are needed at vats level and for this purpose managers have to
determine various sources of funds. There are internal and external
sources of funds; it is essential for government to improve railway
and air-plane facilities so as to make convenient for human being as
they can easily travel at different places. Department of tourism is
promoting people to get included in order to maintain sustainability
of cultural places. Thus, media plays a vital role in attaining and
retaining large group of customers by using mass communication
channels, such as- television, newspaper etc.
Capital projects
It consists with vast amount of investment which is
require in order to modify a project. It is rely upon the actual
use of capital and labour in order complete a task. It includes
acquiring new assets, new equipment’ and property lease.
Along with this, capital projects can be beneficial in order to
promote travelling industry. Cross railway projects are
developed for economic vitality in wider origins which are
supported tourism activities in rural areas. With these
evolution, there is vast change that can change which supports
in accessing and flexibility in summer rides by trains at border
areas. Heritage interpretation is all about such information that
are communicated to its visitors as educational and national
park like museum.
The Cross rail programme – The largest infrastructure project
of Europe has been completed almost 85%. By introducing
new Elizabeth railway track which has been opened in
December 2018 at London. The programmes are going
smoothly on time by having a budget of £14.8 billion. The
project has entered into new phase in which construction of
trains by considering their length and new tunnels. The
construction requires a team of 15000 workforce and over 100
million working hours which are going to complete soon.
Santander cycle is a public bicycle scheme which is firstly sponsored
by Barclays Bank 2010 to March 2015. Along with this, the scheme
is contracted with London Transport, Serco. Bikes and docking
stations are provided by PBSC Urban Solutions
There are two sources using which financing can be done for
tourism:
Internal sources or non-public funding are:
Equity funding - It consists with a mutual fund investment in order
to increase stocks; these are controlled by index funds. Equity funds
are also treated as stock funds.
Debt funding – It relates with those funds which are invested in
revenue securities, such as – treasury bills and bonds. Liquid funds ,
monthly income plans (MIPs), short term plans (STPs), and fixed
maturity plans (FMPs), gilt fund are the main examples of debt
funding’s.
Government funding – It relates with those capital which are
provided by government and non-government agencies for specific
purpose.
External sources of funds are: -
Loans – In this, an individual comes to bank to take some credit and
for this the person is ready to pay some kind of interest amount as
well.
Overdrafts – These kind of funds are provided for short term and
bank charges interest on the amount of overdraft.
INTRODUCTION

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