Page 197 - Tourism The International Business

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not considered at all, while in other communities, such as New Harmony, Indiana (US), over USD 21 million has
been generated through various kinds of grants, contributions, and solicitations. Contributions are usually more
substantial and consistent when a local historic foundation s involved, which can be the recipient of these

contributions for tax deduction purposes.
Disadvantages of this method of financing capital improvements are the inconsistency of funds over a long
period of time and the effort required to generate them.
Foundations. A very significant source of funds for capital projects and tourism development is the historic or
museum foundation. Several communities visited had foundations that had as their primary purpose the acquiring
and restoration of historic places, or the development and operation of a museum or both. Historical Savannah
(Georgia) Foundation, Historic New Harmony (Indiana) Foundation, Historic Williamsburg (Virginia) Foundation,

Greater Memphis (Tennessee) Foundation, Historic Lexington (Kentucky) Foundation, and Historic
Fredericksburg (Virginia) Foundation are examples of foundations in the United States working in close association
with local tourism councils to develop tourist attractions. One of the advantages of such a foundation is that it
usually has a program of fund solicitation which is independent from the tourism council or the city. It is attractive
to those who want to leave part of their estate to the foundation, or as a tax advantage for contributions. The
independence of the foundation gives the donors additional assurances that their donated funds will be used to the
best advantage of the community, and will be cared for in years to come.
Other types of foundations may also be of help. The Blandin Foundation in Grand Rapids, Minnesota, has USD
4 million of annual income which has to be spent on projects to enhance the local community. Much of this goes for

projects which have tourism potential.
New Harmony, Indiana, received a grant from the Lilly Foundation of USD 25,000 for planning Historic New
Harmony. Several years later, as they were progressing in their plan, this foundation contributed an additional USD
3.5 million.
Miscellaneous sources of funding for capital development. Sources under this heading may be for both
operation and/or capital projects and are from a variety of sources. For example:
• USTS provided a grant of USD 10,000 to Fall River, Massachusetts, to promote Bristol County to foreign

tourists.
• Bishop Hill, Illinois, received a National Endowment for the Humanities Grant to develop an orientation
film.
• Bishop Hill also received a federal community redevelopment grant from the Historic Preservation Act of
1956, National Park Service.
• Several agencies have received Comprehensive Employment and Training Act funds for personnel salaries,

consumer research programs, and evaluation of agency activities.
• One community received a Housing and Urban Development 701 Grant to establish a new master plan for
tourism.
• Another community received 50 per cent matching funds for a water system from the Farmers Home
Administration.
Once tourism has been established, funded, and coordinated and public facilities have been provided, you have

something to sell the tourist.

Tourism the International Business 197 A Global Text