The financial forecasts for a tourism business plan are designed to provide investors with a three to five-year projection period. These projections will ideally be based upon the prior operating performance of your company and, if possible,
extrapolated based on the management strategy for the use of funds. If your tourism business lacks prior operating history, it will be based upon the performance of other companies that are comparable to your business model. You may
estimate the profitability of a company in any given industry by the number of employees that it has, or the estimated value of its assets. A reliable financial model will also assist you to effectively make internal decisions based on forecasting scenario analysis. For instance, altering the depreciation schedule based on the acquisition of a new asset, or understanding how many customers need
to be served in order to determine your break-even point. However, it is important to form the model based on conservative assumptions derived from reliable third-party data. Anything that forms bold assumptions will not only be disregarded
by investors, but also provide misleading information to generate decisions by your management team.