Merlin Entertainment Plc: Finance and Funding in Tourism Report

This report examines the financial aspects of the tourism sector, focusing on funding sources available to companies like Merlin Entertainment Plc. It explores various avenues such as the Tourism Fund Department, government funding, financial grants, equity shares, and regional development funds. The report highlights how these sources provide capital and support for business expansion and project development. It delves into the specifics of each funding mechanism, including eligibility, processes, and associated costs like taxation and interest. The analysis encompasses both micro-level financial practices within a travel and tourism business and macro-level funding arrangements for tourism project development, offering a comprehensive overview of financial management within the industry.

Sources which provide fund to the company in order to develop project
Government funding: Apart from all the above sources, government
funding is also highly effective where any kind of private funding and
banks are not involved. In this, government of the UK provides fund to
the Merlin Entertainment for expanding business or undertake new
project. Further, cost imposes in terms of taxation from the firm which
take fund or capital from the government. Government funding is the
source which provides capital to the Merlin Entertainment Plc at the
regional and national both level. State government comes at the regional
level while central government included at the national level.
Financial grants: Those frameworks which provides sum of money or capital to the
Merlin Entertainment Plc in order to develop projects at the local level are known as
financial grants. Further, costs behind providing fund the company taken by it is in the
form of taxation and interest amount.
Equity shares: Another source to raise finance is like equity in which the Merlin Plc
issues it s equity shares in the market which will be purchased by the people who called as
shareholders. It is one of the best, cheaper and effectual kind of source in order to enhance
capital for new project (Stewart, 2014). Further, financing expenses will be in terms of
dividend which depends on the profit condition of the firm. It is international level of the
source of funding under which shareholders from worldwide purchase shares of the
Merlin Entertainment company.
Regional development fund: In the country,
there are development institutes are prepared on
the basis of regions which provides finance to
the company. When the firm will raise fund
from there then procedure is very easy and short
has to complete by the entity (Sources of
Finance, 2017). Along with this, level of
costing are also lower in comparison to other
sources.
Tourism fund department: The instrument
which supports to the European Union and its
companies in terms of financial is known as
Tourism fund department. Merlin
Entertainment Plc Company falls under the
European, due to which it able to raise its
fund from there. It is one of the widely used
source by UK business entities of travel and
tourism sector because of having easy
procedure along with the lower financing