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Foreign Direct Investment (FDI) in Tourism
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Foreign Direct Investment (FDI)
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.
Public Investment
Investment made by the government in the tourism infrastructure such as roads, airports, and public facilities. It improves accessibility and can stimulate private investments.
Private Equity
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.
Venture Capital
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.
Real Estate Investment
Investment in property development for tourism such as hotels, resorts, and attractions. It can drive regional development and enhance the attractiveness of a destination.
Debt Financing
Funding tourism projects by borrowing through loans or issuing bonds. It allows for leveraging which can amplify returns but also introduces higher risk.
Angel Investing
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.
Government Grants and Subsidies
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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