Investors in tourism projects are more likely to open their wallets if governments supply assurances along with electricity…
Investors in tourism projects are more likely to open their wallets if governments supply assurances along with electricity, water and telecom facilities.
Speakers addressing a session of the 54th PATA Annual Conference in Macau, April 20, said that financiers not only analyse the economical viability of the tourism business plan, but also political stability, the economic growth rate, the enforcement of contracts and the protection of property rights.
Mr Jean-Claude Baumgarten, President, World Travel & Tourism Council told delegates that a lack of project financing for entrepreneurs has become a serious bottle-neck in the development of travel and tourism industry in Asia Pacific.
Mr Baumgarten said: The key component to financing tourism projects is the public-private partnership. Although tourism is largely a private-sector driven business, the government`s role is indispensable. It is crucial to create a favourable environment to attract private investment in tourism projects, by putting in basic infrastructure — electricity, water and telecom facilities.
He said it was imperative for the government to give incentives and high visibility to the investment as part of a strong policy commitment to tourism development.
Mr Amar Gill, Managing Director, Hong Kong Research CLSA said that tourism supplies cash flow, growth and high-return. If the environment is right, the capital will flow. However, it is important to have a sexy theme for a tourism project, as well as making it commercially viable.
Mr Richard Price, Managing Director, Leisure Industry, The Royal Bank of Scotland, said that financiers realise the importance of sound environmental practice. Financiers also consider issues such as the ability and willingness of the project managers to maintain the attractiveness of the facility.
Mr Robert Byrne, Director, DB Real Estate Asia, Deutsche Asset Management in Hong Kong said that in order to make a decision on project finance, the financiers will look not only at the economical viability of the tourism business plan, but also the political stability, economic growth rate, enforcement of contract and protection of property right issues.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales. She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
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