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Foreign Direct Investment (FDI) in Tourism

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Foreign Direct Investment (FDI)

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A long-term investment by a foreign entity in the tourism sector of a host country, often involving management control or significant influence. It plays a crucial role in introducing new technologies, managerial expertise, and can drive infrastructure development.

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Public Investment

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Investment made by the government in the tourism infrastructure such as roads, airports, and public facilities. It improves accessibility and can stimulate private investments.

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Private Equity

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Investment by individuals or firms in private companies in the tourism sector. It allows for more flexible and long-term investment strategies and can lead to business expansions and improvements.

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Venture Capital

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Funding provided by investors to startup companies and small businesses in the tourism industry with perceived long-term growth potential. It's essential for innovation and entrepreneurship in tourism.

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Real Estate Investment

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Investment in property development for tourism such as hotels, resorts, and attractions. It can drive regional development and enhance the attractiveness of a destination.

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Debt Financing

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Funding tourism projects by borrowing through loans or issuing bonds. It allows for leveraging which can amplify returns but also introduces higher risk.

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Angel Investing

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Wealthy individuals providing capital to tourism startups typically in exchange for convertible debt or ownership equity. Angels can offer valuable management advice and network connections.

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Government Grants and Subsidies

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Non-repayable funds provided by the government to support tourism projects that offer a public benefit. They can incentivize development in underserved areas or for certain types of tourism, like eco-tourism.

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