This is a common question, asked by most of the potential investors. As far as NRIs are concerned, the initiative may come from a relative or a friend in the homeland or through inspiration gained from the intensive promotional ventures undertaken by the Government or similar organizations.
But before jumping into conclusions you should understand some basic facts about Tourism Investment.
Huge investments using white money is risky as far as Tourism in concerned. If you are going to invest your hard earned money without any planning, please remember that the returns from your investment will be a slow process – technically, the gestation period will be too long. Hence it would be better to think twice before entering into big projects worth crores of Rupees. However, if you are big enough to make it, forget what we have quoted above!
Most people think about capital investments forgetting all about its operational costs. Apart from the routine recurring cost, a considerable amount has to be demarcated for marketing, without which your entire effort will be futile.
Don’t believe in the advice of your relatives or friends regarding project concepts if they have only a superficial idea about tourism aspects. Their ambition may be fulfilled through you; but your ambition will become a line drawn on water! Always seek the advise of tourism experts regarding your tourism project.
Also don’t fully believe the exalted phases and images about Tourism published in the press and depicted on other media. The roll of journalists and media men who want sensation first will either not say the truth or they will be totally ignorant about t!
Most people jump into the implementation part without finalizing the source of funding to complete the project, hoping that the finance will be ready as soon as the project gets started. Over confidence always results in desperation - do try to avoid that.
Also beware quick finance institutions! They always have a hidden agenda. It is better to depend on public financing banks as they have at least a limited commitment towards society.
Some people do think first about Government grants/ subsidies. It is good to go for that, but starting a project for subsidies or grants would again be a futile effort. It would be better to seek help from Government Tourism organizations in a limited way as Government can act for a common cause only, not on individual cases, as over dependence on them will destroy your project.
Hence before starting a tourism project, prepare them yourself, do your home-work and get the advise of a Tourism expert. Only then, can you make it a success story.