Tourism investment & finance 21 Unit 2: Evaluate Investment Environment

Fiscal and Government Investment Policies:
Creating a sustainable tourism industry requires 
policies that 
•
Encourage investment sustainability and promote sustainable use of natural 
resources.
•
Define and commit critical government green economy investments in protected 
areas, cultural assets, water and waste infrastructure.
•
Use tax policy to encourage investment in sustainable tourism activities. 
•
Provide clear price signals to orient investment in water, electricity, and waste 
management services.
Finance and Investment:
Poor understanding of the benefits of sustainable investing is a 
major obstacle in many countries. Approaches to overcoming this challenge include
•
Private sector awareness programs and policy coordination to improve 
understanding of sustainable investing
•
Promoting external funding, including FDI, private equity and portfolio investment
aligned with sustainable financing strategies to supplement local and regional funds 
for local tourism development 
•
Adoption of rules, regulations, standards, and certifications that promote sustainable 
investment, and discourage investments that harm the environment, through
o
Voluntary standards
o
Zoning laws and environmental impact analysis 
o
Tax incentives that support sustainable investment 
o
Fees and levies that more fully reflect the true cost of unsustainable 
investments 
 
RESOURCE 2.3
 
 
G
LOBAL 
S
USTAINABLE 
T
OURISM 
C
RITERIA
 
Launched at the World Conservation Congress in October 2008, The Global Sustainable 
Tourism Criteria is a set of 37 voluntary standards that any tourism business should implement 
to sustain the world’s natural and cultural resources while ensuring tourism meets its potential 
for poverty alleviation. 
www.sustainabletourismcriteria.org/index.php?option=com_content&task=view&id=58&Itemid
=188
  

---

TOURISM INVESTMENT & FINANCE
30 
•
Partnerships to distribute costs and risks of funding sustainable tourism investments 
for small and medium enterprises such as technical, marketing, or business 
administrative assistance and support 
O
THER 
T
OOLS 
 
In addition to IFC Doing Business Reports, the following indicators, benchmarks, and tools can 
assist in evaluating and comparing the investment environment in a given country against other 
investment destinations.