Research On The Financial Support On The Development Of Tour Industry

In recent years, the tourist industry in our country has made a considerable progress and a gratifying achievement. It also has become increasingly important in the national economy. Nowadays, in order to achieve sustainable development, industries need to merge with finance — finance integration. This situation has become the main features in the contemporary society and, it will become a necessary trend in the future development. Thus, this is a great opportunity for the tourist industry to achieve sustainable development under such good environment. Therefore, this paper presents the study about the finance supporting in tourism development.As this paper mentioned above, industries need the support from finance to achieve sustainable development, so does the tourist industry. Under this circumstance, finance has a strong oriented with resources allocation comparing with the tourist industry. On the other side, the tourism could also bring vitality and support solid material foundation to finance. According to the research, Chinese scholars generally believe that there is a really close connection between industries development and finance; they also claim that the connections of these two are inseparable and interdependent.The definitions of tourist industry and finance support extensively. First, the concept of’tourist industry, finance support’ is the foundation of research. Second, finance support specifically refers to the effect of capital support and policies driven. Following this point, from the view of financial capital, it provides a theory to the tourism development. This theory considers the function of banks as financial credit intermediaries which is to re-arrange the overall level of savings and investments in the entire society. It not only significantly improves the efficiency of the utilising funds but also provides a prerequisite for the funds acquiring. As for the stock market, it maximises the funds by raising the idle funds in the society, and this could provides opportunities of distributing dividends to those investors who join in the tourism. Thus, it considerably solves the problem of funds shortage in tourism. Third, investment funds could benefit reducing the risk of those investments in tourism and, increasing the economic efficiency. Due to the nature of capital markets, there are some differences among each market. However, all of these markets have the same goal which is to earn profits. Fourth, the purpose of financial capital is to allocate resource. Furthermore, this could allocate the production factors of tourism, and ultimately, affecting on the economic development of tourism. Fifth, financial policies have huge impact on the tourism development. Due to the outstanding influence by the government, financial policies could be a guide of investment, and ultimately, support the capital. Finally, financial policies not only provide a strong financial security and foundation to the development of tourism, but also penetrate into tourist industry. Additionally, strengthen the integration between financial sector and tourist industry.After analysed the situation of tourist industry, credit market, capital market and investment market supporting the development of tourism. It shows high development and strong finance support within the tourist industry, and there are even more increasing value with tourist industry in the future. On the other hand, due to the limited funds, many banks may have different point of views about the risk of tourist industry in the credit market. In capital market, there are few tourism firms who can also be the listed companies in the stock market. Comparing with so many tourism resources in our country, this situation shows the lack of utilising resource of tourism firms. In investment funds, increasing investment into the tourist industry could broadening financing channels, sufficiently absorbing potential investment, increasing the proportion of direct investment, promoting reasonable direct or indirect investment and balanced development. In addition, this article deeply analyses some limitations of finance support that could exist in the tourist industry. First, lack of funds from national public finance to tourism infrastructure shows poor investment and financial policies. Second, efficiency of investment in tourism is low. Nowadays, most of the investments are from the social capital. Thus, low social capital investment in tourist industry could cause that the industry unable to complete the industrial upgrading. Moreover, tourism firms and financial institutions may also have inherent problems that cannot be solve.In conclusion, as the limitations that mentioned above, this article provides some solutions. As for the government, they need to improve their finance support in the tourist industry by providing more credit support policies, and ensure that those police can be well implemented. For example, establishing the tourism loan risk compensation funds and tourism development funds, increasing the proportion of financial support in order to investing into more public facilities around the tourism area, increasing credit support; improving the innovations of financial products、financial co-operation and finance; adequately developing the capital market by utilising existing assets, achieving low-cost expansion and enhancing the competitiveness of the industry; developing investment market, absorbing social capital to promote the tourist industry towards fully market operation; utilising structured finance, adjusting companies balance sheet, optimizing the financial situation, decreasing the gearing ratio in order to receive more returns.