Funding Sources and Capital Projects in Tourism: A Review

This report examines the sources of funding for capital projects within the tourism sector. It discusses various funding options, including bank loans, equity financing, and government grants, highlighting their roles in supporting projects like heritage site development, environmental improvements, and the creation of tourism infrastructure. The report emphasizes the importance of selecting appropriate funding sources based on project requirements, differentiating between public and private funding, and underscoring the significance of financial planning for the success of tourism-related capital ventures. It also touches upon the advantages of different funding mechanisms and the types of capital projects they support, providing a comprehensive overview of financial strategies within the tourism industry.

P4 Sources and distribution of funding for the development of capital projects associated with tourism.
Background
Sources of funds are very important for every business.
They play an important role in order to raise finances of
organization. In the context of travel and tourism
sector,both public and pricvate authorities take resort of
financial sources for meeting requirements pertaining to
capital projects.
Capital projects.
The capital projects are those projects in which cost of
the product get depreciated. In travel and tourism
sector capital projects are of various types.
These includes development of small scale heritage,
interpretation boards, improvement of conditions of
environment, development of cycle route, tourism
information point.
Sources of funds
Business is worthless without money. business activities uses the sources of
funds to make it complete
There are various types of sources of funding like venture capital, equity
finance, angel investors, subsidies and credit. Selection of sources can be
done on the basis of capital projects which are required in travel and tourism
sector.
Advantages of sources of funds
Bank Loans : in bank loan bank do not
takes the owner ship of the business. It
provides the option for fixed rate loan
where the intrest are not vary.
Equity : in equity financing compay do
not need to repay the capital ammount.
Government grants : It provide the large
number of funds for investment in capital
projetcs as well as to the business.
Types of funding
Funding are of two types, public and non public subsidy. Public funding
refers to those funds which are provided by central as well as the state governments.
While private funding are those which are provided by financial institutions to
companies in order to raise the finance. Selection for funding can be done on the
basis of requirements of capital project of travel and tourism sector.