During the EUROPETOUR meeting in Veliko Tarnovo, Bulgaria, project partner Wolfgang Kniejski presents an overview of financing instruments for cultural tourism in rural areas.
5. • The Business Plan and the Financial Model set the framework for
– Founding, financing, developing, and capitalising a project
and is therefore a key requirement for
– The project team as well as for their external stakeolders, e.g. investors,
partners
• It is also a living documentation of all relevant aspects of the project
and ist evaluation and value-generation.
The Business Plan is about the Strategy
….. and about money!!!
5July 2011
Purpose of a Business Plan
6. • … is a key part of the busines plan and the financial plan
• … has to be understood as Sales and Marketing which is the main „cash-
in“ source
Project Marketing is about the Strategy
….. and about money!!!
6July 2011
Project Marketing
7. • Legal Frameworks as Obstacles
• Missing Awareness and Sensitiveness
• Missing Integrated Concepts
• Missing Integration of Tourism Competence with Business
Competence (Team Composition)
• Missing Sales Forces
High Risks in Early Stages (Financing Gap)
7July 2011
Financing Challenges
13. National Grant Schemes (Operational Programs)
Regional Grant Schemes (CBC, Danube Program)
European Grant Schemes (Horizon 2020)
International Foundations with cultural and/or tourism orientation
Additional aspects
Free Consulting (Consulting Agencies)
Supplemental Funding
13July 2011
Sources of Grant Funding
14. European Funds
European Fund for Strategic Investment
European Regional Development Fund
Cohesion Fund
European Agriculture Fund for Rural Development
European Programmes
LIFE (environmental and nature conservation)
COSME (Competitiveness of Enterprises and SMEs)
Creative Europe
Programme Employment and Social Innovation
14July 2011
Overview on European Funds
15. The International Fund for
Cultural Diversity
• is a means to support the
implementation of the Convention,
by fostering the emergence of a
dynamic cultural sector in developing
countries.
15
International Council of
Museums (ICOM)
• supports its network through three major
grant programmes:
* Annual subsidies to International
Committees
* Support to National, International
Committees and Regional Alliances in
organizing special projects
• Bursary programmes to foster the
attendance of young members at the
annual meetings of ICOM’s International
Committees.
Examples of
Donators/Foundations
16. The European Cultural
Foundation
• facilitates and catalyses cultural
exchange and new forms of
creative expression. They share
and connect knowledge across
the European cultural sector and
advocate for the arts on all levels
of political decision-making.-
16
Nordic Culture Fund
• to support a broad spectrum of
cultural co-operations between
the Nordic countries.
Examples of
Donators/Foundations
17. DOEN Foundation
• The ambition is to help build a
world in which everyone can
make a contribution. DOEN is
looking for pioneers who will
make a positive contribution to
the following developments:
cultivating positive effects on
Climate Change, cultivating
Culture and Cohesion and
promoting New Economy.
17
The Hivos Culture Fund
• set up in 1995, supports
independent artistic initiatives in
developing countries. Those
initiatives must also be accessible
for a wide audience and have
national and international appeal.
Examples of
Donators/Foundations
18. The Prince Claus Fund
• The objective is to expand insight into
cultures and to promote interaction
between culture and development.
The Prince Claus Fund selects
projects and programmes on the
basis of quality, originality,
engagement and development
relevance.
18
The Finnish Cultural
Foundation
• is a private trust dedicated to
promoting the arts, science, and
other field of intellectual and cultural
endeavour in Finland.
• provides grants to individuals,
groups, and organizations from a
central fund and 17 regional funds,
and arranges courses, lectures, and
other events.
Examples of
Donators/Foundations
20. • Management Support and Consulting
• Information flow to asses preferable conditions for taking loans
• Local, Regional Networks
• Co-operation within an Innovation Team
• Organisation of and Participation in Fairs
• Loans
But:
• Rating Requirements
20July 2011
Potential Support from Banks
24. • Private Equity Investors are Co-Owners of the Company: They
share Risks and Profits
• They target Investments in Companies that are not listet in Stock
Markets
• Private Equity Investments target generally for both:
Majority or Minority Participation
• Participation may be active or in-active as well
Private Equity
25. • Private Equity Investor targets a Return of 20% to 25%
• Normally they do not look for Desinvestments
• They use to take Management Responsability
• They target an Exit after 4 – 7 Years
Private Equity
It is almost impossible to attract private equity,
but BAs or CVC may be worthwhile
33. Clear picture of concept
and roles
Commitment of the
involved partners
Perfect project management
(masterplan/timing/decision
making/progress tracking/timeline
Excellent knowledge and
cooperation on possibilities of
infrastructural funding
Appropriate
communications
strategy
Adequate will for investment
Appropriate project
development control
Critical Success Factors