Tourism investment & finance 21 Unit 2: Evaluate Investment Environment

Confidentiality terms:
This may or not include a written confidentiality agreement that 
the recipient (the potential investor or promoter) will be required to sign before receiving 
the prospectus. 
•
Legal disclosures and disclaimers:
This explains in detail the legal basis upon which 
the investment is being promoted. 
•
Executive summary:
This briefly highlights all components of the investment proposal. 
•
Project overview:
This includes location, objectives, and scope and scale of the project. 
•
Market analysis: 
This demonstrates market support for the project. 
•
Financial analysis
: This summarizes the financial feasibility of the project. 
•
Investment analysis
: This projects the expected return on investment. 
•
Marketing strategy
: This outlines the strategy and tactics to promote the project to 
targeted markets. 
•
Management strategy
: This indicates how the investment will be managed and by 
whom, including both finance and operations.
 
•
Identification of investment risks
: This section not only identifies risks but details how 
the project sponsor will mitigate them. 
•
Next steps
: This section is for investors interested in exploring the opportunity in more 
depth. 

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TOURISM INVESTMENT & FINANCE
59 
The most effective way to explain the process of putting together an investment prospectus is 
through an example presented in Appendix A. 
D
EFINE 
L
EGAL 
S
TRUCTURE
A legal structure will be required to finalize financing arrangements (disbursement of funds from 
investors to the project). It includes: 
•