UK College of Business: Finance and Funding Report, Travel and Tourism

This report focuses on the finance and funding aspects within the travel and tourism sector, specifically addressing the development of tourist information points, small heritage sites, and the expansion of hotels. It explores various sources of funding, including government grants, issuance of shares and debentures, and bank loans. The report highlights the importance of these funding mechanisms for supporting tourism infrastructure and development. It also discusses the benefits and implications of each funding source, such as the tax benefits associated with bank loans and the potential for generating capital through shares. The report emphasizes the role of financial planning in the growth and sustainability of tourism businesses and attractions.

Finance and Funding in Travel and Tourism Sector
4.1 The sources and distribution of funding for the
development of capital projects
Capital projects
Tourism information point:
Tourist information a provides visitors to a location with
information on the area's attractions, lodging, maps and
other item relevant to tourism. As the tourism sector is
very important for a country it’s also important to proper
take care of the tourists coming in the country. Tourism
information centre is very important for the tourist ,the
development of the centres is very important for the
tourism companies as well as the government economy.
Development of small scale heritage sites:
Small heritage sites are official locations where pieces of
political, cultural or social history have been preserved
due to its cultural heritage value. A small heritage sites
may be a landscape, sites or structures that is of local
significance. Development of these sites is important to
gather the attraction of customer towards this sites which
can increase the number of visitors.
Expansion of hotel: Dalata Hotels Groups being
reputed 3 and $ star hotels will have more tourists to
stay. Hence the hotel needs to provide more facilities
more staffs needs to be hired.
Sources of finance are:
Government grant: it is the financial rewards
given by the federal, state or local government to
an eligible grantee. It do not have to repay to the
government and do not include technical
assistance or other financial assistance such as
loans or loan guarantee, an interest rate subsidy.
Issuance of shares: By issuing shares and
debentures funds can be generate to a great extent.
Fund can be raised either by government for
funding of visitors centres or to the development
of small heritage sites. The fund can be raised by
company for the expansion of hotels. These funds
can be repaid with giving shares in the profit.
Bank loan: the government or the tourism
company can raised the funds for the development
by the granting loans from the bank. Bank
provides such loans on low interest basis. The
company has to give collateral security for the
loans. And this loans gives tax benefits also. The
repayment of this loans can be done in instalments
which gives benefits to the company.