Tourism investment & finance 21 Unit 2: Evaluate Investment Environment

Identification and analysis of investors
that
have invested in projects with similar 
characteristics
: For example, for an ecolodge investment in Ecuador, the first and most 
logical place to look for potential investors is by identifying owners of similar lodges in 
the country.
•
Identification of potential investors by nationality
:
 
Common examples are investor 
networks within a country, or networks of nationals that live abroad, known as diaspora 
investors. Diaspora investment promotion works best in countries with large and 
relatively affluent diaspora populations, for example, the Lebanese and Ethiopian 
communities in France and the United States, respectively. 
•
Identification by investment objective: 
For example, projects with fairly high projected 
financial returns on investment (relative to project risk) appeal first to investors motivated 
primarily by financial return, for example, venture capital firms. For investors motivated 
more by social or environmental returns, impact investment networks, private 
foundations, etc., are a more likely target. For those motivated by a desire to give back 
to their home countries, diaspora investment should be a high priority.
This research compiles a database of potential investors and investment intermediaries 
(discussed below).
Once a database of potential investors exists, the investment opportunity needs to be 
communicated. Methods include 

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TOURISM INVESTMENT & FINANCE
62 
•
Networking:
Attending conferences that attract the targeted investor types is a highly 
effective method to both identify and recruit investors.
•
Mailings
: The prospectus, in both soft and hard copy, is the primary recruiting tool 
distributed to targeted investors. 
•
Presentations
: Either at already-scheduled events or at events to be organized, on a 
stand-alone basis or as an adjunct to events that attract the targeted audience or are 
focused on a similar theme. For example, a presentation, workshop, reception, or 
exhibition at relevant tourism trade fairs. 
•