Tourism is often associated with beautiful landscapes, cultural festivals, heritage sites, reserves and hospitality. Before any tourist centre becomes an attraction, there must be a groundswell of popular acclaim and acceptance from a critical mass of the target population driving word of mouth, attention and footfalls to it. It is these first signs of potential that investors look for before directing their investments into any area.
If we want our tourism ideas and projects to become more than a destination and an asset class that attracts investments, we have to put on the cap that investors wear. The question is, what does an investor look for before choosing which tourism destination becomes an asset class?
Investors tend to ask a simple, and very important, question: can this destination consistently create value? If your tourism destination cannot ace this important question, you can be certain that the investor will take his business elsewhere.
That question is what separates a destination from an asset.
A destination attracts visitors. An asset attracts capital. A destination may become popular overnight; an asset continues to create value over generations.
