An Analysis Of The Investment Benefits Of Tourism Projects Based On The Theory Of Real Options

The Grand Canal runs from Hangzhou to Beijing.It via four provinces of Zhejiang,Jiangsu,Shandong and Hebei as well as two city of Tianjin and Beijing.It is the earliest,largest and longest man-made canal in the world.With the successful application of the grand canal in 2014,the grand canal has become the only world heritage project in use in China.With 2500 years,the grand canal epic can span both ancient and modern times,and the life is endless and struggle is ceaseless.As for the Hangzhou canal,it is an integral part of the grand canal.It is famous for its geographical location at the southern end of the canal.The investment benefit is the most important index to measure the success of tourism project investment.Investment benefits usually include direct economic benefits,related economic benefits,comprehensive economic benefits,social benefits and ecological benefits.In addition to abiding by national and local laws and regulations,enterprises must also protect the ecological benefits.On this basis,the investment enterprise can pursue "maximum operating profit".Therefore,in the preliminary preparation stage,the investment enterprise shall conduct an effective study and analyze the social,economic and ecological benefits of the investment project.Among them,the ecological and social benefits are controlled by the government,while the economic benefits are the core of enterprise investment.This paper takes project A of Hangzhou section of the grand canal as the object of study,and makes an empirical analysis of project A of Hangzhou canal through the transformation of real option model.The conclusion is that the project is not worth investment from the perspective of traditional net present value(NPV).However,through the modified real option model,the project has certain investment value.