Page 196 - Tourism The International Business

9. The management of tourism

Funding of capital improvements or development

Sources of funds for capital development differ somewhat from those available for operation and promotion.
Local resort tax. A number of communities earmark a certain percentage of the local resort tax to be spent for
capital development projects related to tourism. This insures a balance between internal expenses to upgrade the
product to be sold as well as external expenses for marketing to bring the public to the facilities.
City capital improvement budgets. Another related form of capital funding is the inclusion of some building
projects on the capital improvements development list of the city. While some facilities, such as historic

redevelopment of homes, and for the most part of direct benefit to tourists, other capital developments such as golf
courses, tennis courts, and restroom facilities, while primarily for the local public, can be of equal value to the
tourist. The local park and recreation department may have a number of capital project needs which could be
related to tourism development and their cooperation should be sought. Tourism concerns should be included in all
planning of community facilities, particularly park and recreation areas, but also construction of other schools,
buildings, and community facilities which might indirectly lend themselves to tourism appeal.

Exhibit 72: Some resorts earmark a percentage of the local
resort tax for capital projects. (Courtesy New Zealand Tourist &
Publicity Office.)

Voluntary contributions. Traditionally, voluntary contributions are more available and easier to generate for

capital projects than for operation and promotion expenditures. In some communities asking for contributions is

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