Tourism Investment Economy Appraisal Research Based On Real Options

Real option, as a new theoretical approach, was gradually applied to such fields as investment decision-making, financial management, and value assessment. Real option is the option whose underlying asset is real investment. More specifically, in such economic activities as management and investment, real option refers to the possibilities of future business management and investment, and it refers to the right obtained in all kinds of ways to make decisions according to the market. Real option is the development and application of financial option to the field of real investment. In the field of tourism, traditional decision-making methods cannot use uncertainties to create value while real option approach can change the degree of influence resulting from uncertainties. Through the use of passive and active flexibility, real option can avoid negative consequences and retain positive influence.With a combination of theory and practice, quantitative and qualitative analysis, this dissertation has systematically introduced the characteristics, the significance and pricing model of real option approach in tourism investment and has elaborated the process of its creative use in tourism investment. Thus, revealing the superiority of real option and the reasonable and scientific features .It has further provided the approach to effective use of flexibility value, This helps decision-makers face the market. The application of real option to tourism investment decision making is not a simple negation of the traditional appraise methods, but a breakthrough of their limitations and further development.This article analyzes the value source of real option, and the characteristics in tourism investment are also proved in detail, thus it is obvious to find the significance of real option to tourism investment decision making. This would change the way people create value and provide a new approach to investment decision making. Additionally, the potential value of real option is explored in quantitative and qualitative perspectives. Quantifiable analyzing tools of real option value are provided, the main models of calculating real option value including binary tree...