Tourism as an Investment
Does the reach of tourism make it a sensible investment? Alternatively, does the diverse nature of the industry make it an investment to be avoided, given that there are so many avenues it must be difficult to know which areas are likely to be most equitable?
The answer to both of those questions, perhaps paradoxically, is yes. The diversity available in the markets means tourism is an excellent investment, as even when the wider market is in a downturn you can often find opportunities for lucrative returns. At the same time, you need to know which areas of the market are performing. To an inexperienced investor, this can prove difficult.
Your first step as a tourism investor is to think about the geographical location where you wish to invest. Researching the fast emerging tourist locations or those places currently recovering having been hit hardest during the global financial crisis is often the best way to find opportunities. Your quest for the best tourism investments does not stop here, however.
Now, you need to start looking further into potential investments, and decide on the specific areas where you wish to invest.
Wherever you’re investing, you’re likely to have a similar range of choices.
- Property – You might decide to buy or invest in property or land in your favoured location and then develop it yourself for tourism purposes
- Hospitality – Every thriving tourist resort needs hotels and restaurants, making these excellent investment options.
- Infrastructure – Despite the millions pumped into tourist resorts around the world, it is often airports, roads, and other transport links in the most far-flung places that are neglected and in serious need of investment.
Getting Involved With Investing
Once you have an idea of where you want to invest, all that remains is to go and do it. You can enjoy access to the private equity marketplace at Dealmarket, where you’ll find potential investments for tourism and other areas, while simply approaching private equity funds will also enable you to find opportunities.
Beware, however, that private equity firms will already have their strategies well planned, so it might take some time to find one that invests in an area you’re interested in. To make it easier, you could always use Google to simply search for “(location) private investment opportunities,” or find private equity forums and blogs that discuss the very latest happenings in the industry.
As well as finding great advice and guidance, you’ll likely stumble on added opportunities to invest in various industries, as well as tourism, too.
Author Bio: Karl Gregory is a passionate investor who has interests in various industries around the world, although the area that gets him most excited is the tourism sector.