Submitted by:Sugun Subudhi

PGDM(IBTLG)2014-16

IITTM, BHUBANESWAR

MOT does not provide funding for tourism

businesses, but has a Tourism Demand

Subsidy Scheme that helps small communities

to invest in the infrastructure (water and

sewerage) to sustain their tourism industry.

The Minister of Tourism also holds a

discretionary fund (Tourism Facilities Grants

Program) that provides funding for non-

commercial tourism facilities, in order to

enhance overseas visitors.

The Prime Minister released criteria in July 2013 for

applications for funds from the Tourism Growth

Partnership, a new government initiative aimed at

boosting innovation and lifting productivity in the

tourism sector.

Under the Tourism Growth Partnership, the

government is making $28 million available over

four years to support innovative projects that will

create new opportunities and overcome barriers to

growth in the tourism sector.

For each project approved for investment, the

government will provide up to 50% of the required

funding.

The Ministry will generally not invest in business start-

ups, Funding for Ministry projects will be after three

years.

Seed Capital

Venture Capital

Private Equity

Angel Investors

Loans

Leasing

Leaseback

Seed Capital:

Refers to the cash you need to get your business started.

This cash could come from your family members, friends and other external individuals.

Venture Capital:

Money provided by investors to

startup firms and small businesses with

perceived long-term growth potential.

Typically entails high risk for the

investor, but it has the potential for

above-average returns.

Private Equity:

A capital from high net worth

individuals and institutions for the

purpose of investing and acquiring

equity ownership in companies.

Angel investors:

An angel investor (also known as a

business angel or informal investor) is

an affluent individual who provides

capital for a business start-up, usually

in exchange for convertible debt or

ownership equity.

Loan:

Borrowing capital, particularly from

banks, is currently the commonest

method of financing investment.

Leasing:

A company which finances part or all

of the investment of the tourism

project. the tourism firm signs a

contract with a leasing company

which supplies equipment at a

negotiable price.

Role of

IBRD, IDA, IFC & TFCI

IBRD is an international financial institution which offers loans to middle-income developing countries. IBRD acquires most of its capital by borrowing on international capital markets through bond issues.

Formation- 1944

Purpose- development assistance & poverty reduction

Members- 188 countries

Headquarter- Washington, US

IDA is an international financial institution which offers concessional loans and grants to the world's poorest developing countries.

IBRD and its concessional lending arm IDA are collectively known as the World Bank as they share the same leadership and staff.

Formation- 1960

Purpose- development assistance & poverty reduction

Members- 172 countries

Headquarter- Washington, US

IFC is an international financial institution that

offers investment, advisory, and asset

management services to encourage private

sector development in developing countries.

Formation- 1956

Purpose- Private sector development & poverty reduction

Members- 184 countries

Headquarter- Washington, US

Purpose of TFCI: To develop tourism and tourism related activities,

facilities and services.

TFCI provides advisory and merchant banking

services in this field.

It is to co-ordinate activities and formulate

guidelines relating to finance tourism projects.

FINANCE PROJECTS RELATED TO

Hotels .Restaurants, Holiday resorts, Multiplexes

and entertainment centers, Education and sports,

Safari parks, Cultural centers, Convention

halls,Transport,Travel and tour operating agencies,

Air services