Financial Sources and Distribution in the Travel and Tourism Industry

This report provides an overview of finance and funding within the travel and tourism sector, covering both public and non-public funding sources. It explores various funding mechanisms, including equity funding, debt funding, and government funding, with examples like the Crossrail project. The report details sources such as central government, lottery funding, and local councils, as well as public-private partnerships and national sources like Carnival PLC. It also examines the distribution of funds based on project size and investment requirements. The analysis highlights the importance of financing for capital projects and discusses the roles of different financial instruments like bonds, debentures, and working capital loans. The report offers a comprehensive understanding of how travel and tourism projects are financed and managed.

FINANCE AND FUNDING IN TRAVEL AND TOURISM SECTOR
Sources and distribution of fund For the
development of capital projects associated with
travel and tourism like cross railway project,
tourism information point, small scale tourism
etc., various sources and distribution of funds
are:
Sources of fund: Financing is very important
for every business. It means equity, debt,
debentures, retained earning, working capital,
term loans, letter of credit, working capital
loans etc. (Koutra and Edwards, 2012). For
capital projects of travel and tourism, company
will arrange funds through long term sources
which are as:
Public Funding:
It means a funds of the every political state
division
wherein taxes are levied for the purpose of the
public.
Various sources of public funding are:
Central Government: In this, central
government as per various programmes
operated by various departments of government
gives funds to the various companies for their
funding requirements. It should only be given if
there is a a significant benefits to the country by
the activities of these companies.
Lottery Funding: It is a national lottery system
which is the responsibility of the department for
culture, media and sport (DCMS) for issuance
of policies and directions for finance to UK
distribution bodies except Big Lottery Fund.
This will used as a sources of funds for tour and
tourism sector for capital projects.
Government Funding: In this funds are arranged
by non government entities through
government, state or federal grant, guarantees,
property, cooperative agreement or other
assistance for financing the capital projects of
tour and tourism associated with the business.
Non-Public Funding:It is a another source of
obtaining funds, in this, funds are arranged by the
companies itself. It include equity funding, debt
funding and government funding.
Debt Funding: In this, funds are arranged through
issue of bond debentures to the public on which
specified rate of interest is payable at
predetermined period of time.
Equity Funding: In this, funds are obtained by the
companies by issuing equity shares, which is used
by the company for various business operations.
Distribution of fund: For distribution of fund, will
depends upon the size and amount of investment
in the particular project. If a particular project
required more capital then the distribution of the
funds to that project will be more. Like cross
railway project will required more investment in
equipment, labour etc.
National sources: There are different
types of national sources of funding to travel and
tourism company like carnival plc. Such grants,
charity, import tax, money carried by guest while
travelling from one country to another.
Government have developed different program
such as national lottery community so that funds
can be raised to travel sectors.
Public private: There are different types of
funding sources from public private such as seed
capital, venture capital, private equity and angel
investors.
Local council: This particular council is fund by
the combination of both state and central. It would
serve as a vehicle for local government authorities
such as municipalities and regions to access
capital market for the purpose of provide credit
investment project.
This funding sources framework for the project of
Cross rail that was put in place in October 2007 at
the time prime minister announced that Rail cost
will be met through government.
As in the month of Ju ly 2018, it is about 93% of
the portion was complete and estimated to a total
cost of £15.4 billion. It primary feature was that
21km of new twin tunnels below the city has been
covered effectively. These tunnel will run from
Paddington to Stratford and canary Wharf in the
east.
Almost entirely new lines will branch from the
main line. Crossing under the river Thames with
new stations at Woolwich as well as connecting
with the north Kent line at abbey wood.
This project is funded by KPMG, which has
estimated the total cost around £2 billion. The
cross rail project consists of 41 accessible stations
and 10 newly formed as well as other upgraded
feature which has planned to serve around 200
customer.