What are the risks of tourism investment?

Tourism investment risk refers to the difference between the result of tourism investment and the original expected result. For most investment activities, there are risk problems, but the degree of risk is different. If an investment scheme has only one deterministic result, it is called deterministic investment. Deterministic investment is generally risk-free. The problems involved in the investment of tourism enterprises are long-term, which are related to the demand, price and cost of future tourism products, and these factors are uncertain. The change of a certain factor often leads to the change of investment effect, and even some investment projects are considered feasible in investment decision-making, and the results will change because of the change of some factors after implementation. In addition, tourism has strong dependence, relevance, sensitivity and fragility, and social, natural, economic and political factors may have a certain impact on tourism. It can be said that any tourism investment decision will be risky. Therefore, it is of great significance to introduce risk management into the construction of tourism projects, comprehensively analyze various risk factors and take effective measures to prevent, reduce and resolve risks, which will promote the stable, healthy, sustained and rapid development of China's tourism industry.

Tourism investment risk can be divided into systematic risk and non-systematic risk. System risk, also known as market risk, comes from macro-environmental factors, such as political, economic, financial and natural risks. It is an inevitable risk and uncertainty for investors. However, in the specific project investment, it is necessary to estimate the possible system risks to avoid or prevent possible losses. Non-systematic risk, also known as enterprise risk, comes from specific factors that have an impact on tourism investment projects, such as the risks caused by a series of accidents directly related to enterprises, such as design, construction and management. It is a risk that investors can foresee and control. Therefore, investors need to focus on identification, prevention and solution before and during investment. [ 1]

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