Unit 2 Finance and Funding in Travel and Tourism Sector Analysis

This report examines the financial aspects of the travel and tourism sector, focusing on how capital projects are funded. It explores both internal and external sources of finance. Internal sources include owner's capital, retained earnings, and personal savings, while external sources involve debts, borrowings from banks and financial institutions, and raising funds against assets. The report highlights the importance of proper promotion through various media, necessitating sufficient funds. It concludes that capital projects promote the travel and tourism sector. The abstract further emphasizes the diverse funding sources utilized for these projects.

Finance and funding in travel and tourism
Abstract
In the travel business there are various sources that will be used in order to collect the funds that will
be required by it. With the help of them different capital projects will be undertaken.
In the travel and tourism business there will be need of the development of capital projects in
which heritage sites will be developed and also the infrastructure will be required to be
improved and the information regarding them will be provided to the potential customers so
that they can be attracted. It will be required that proper promotion should be carried out with
the help of using various media sources that are available. For this purpose, the funds will be
needed in large amount and for that it will be necessary that various sources which are
available should be analysed in proper manner so that the most appropriate one can be selected.
The funds can be collected from internal as well as external sources. It will also be needed that
railway facility should be improved so that it becomes convenient for the people to travel to
different places and by that tourism will be promoted.
Different sources of finance
Internal sources: In this the funds will be arranged by the owner by himself and will include the
owner’s capital and retained earnings and personal savings. This will be that amount that is reserved
by the business so that it can be used in case of emergency. This will be the cheapest source as in
this there will be no additional cost that will be required to be incurred but this cannot be used in
case the large amount of funds will be needed.
External sources: These are those sources in which the funds are made available by the third party.
There are various methods in this which are debts and borrowings that will be raised from the banks
and financial institutions. For the funds that will be provided bank will be charging the interest at a
fixed rate that will have to be paid on timely basis. Also the funds can be obtained on the security of
assets or by giving any other proper in exchange of the amount. By these methods large amount of
money can be raised but the methods will be costly in comparison to the internal sources.
Conclusion
It has been concluded that with the help of the capital projects that will be made, the travel
and tourism sector will be promoted and for that the funds will be distributed among various
departments for their successful completion.
Examples:
 EU programme (2014-2020), provides business unit with financial support and assistance in
two thematic areas such as remembrance as well as democratic engagement and civic
areas.
 Liverpool city council also provides high level of financial assistance for community
building, art and cultural aspects or programs. Such council also gives expert advice
pertaining to investment opportunities.
 High Speed Rail Two is accountable for developing and promoting effectual network in UK.
The main objective behind high speed rail project or approach is to ensure high level of
community engagement. This in turn provides high level of convenience to tourists and
thereby offers support of travel and tourism firms.