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Cost of Capital for Small Size Tourism Industry in Developing Countries: The Case of Lodging Sector in Chile

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dc.contributor.authorZuniga-Jara, Sergio
dc.contributor.authorSoria-Barreto, Karla
dc.contributor.departmentUniversidad Catolica del Norte
dc.contributor.departmentUniversidad Catolica del Norte
dc.date2023-09-24T07:32:09.000
dc.date.accessioned2024-04-26T17:48:43Z
dc.date.available2021-11-09T00:00:00Z
dc.date.issued2021-11-09
dc.description.abstractThis paper provides a simplified approach toward estimating the cost of capital for a small company of the tourism sector. This is accomplished by dividing the hurdle rate into the return of the specific industry in a specific country, and a specific risk premium dependent on the size and age of the company/projects. We illustrate our proposal with investment estimations in lodging accommodations along the northern coast of Chile where tourism represents an important source of income and jobs. The estimations were validated through a survey carried out among entrepreneurs of the sector. The results suggest that our method is realistic and practical, and could be adapted to economic sectors other than tourism and to other countries.
dc.identifier.doihttps://doi.org/10.7275/tt9e-kj06
dc.identifier.urihttps://hdl.handle.net/20.500.14394/31067
dc.relation.urlhttps://scholarworks.umass.edu/cgi/viewcontent.cgi?article=1488&context=jhfm&unstamped=1
dc.source.statuspublished
dc.subjecthurdle rate
dc.subjectcost of capital
dc.subjectreturn on equity
dc.subjectChile
dc.subjectinvestments
dc.subjectlodging house
dc.subjectCorporate Finance
dc.subjectFinance and Financial Management
dc.subjectFood and Beverage Management
dc.subjectGaming and Casino Operations Management
dc.subjectHospitality Administration and Management
dc.subjectReal Estate
dc.subjectTourism and Travel
dc.titleCost of Capital for Small Size Tourism Industry in Developing Countries: The Case of Lodging Sector in Chile
dc.typerefereed
dc.typearticle
digcom.contributor.authorZuniga-Jara, Sergio
digcom.contributor.authorSoria-Barreto, Karla
digcom.date.embargo2021-11-09T00:00:00-08:00
digcom.identifierjhfm/vol29/iss2/2
digcom.identifier.contextkey25839638
digcom.identifier.submissionpathjhfm/vol29/iss2/2
dspace.entity.typePublication
relation.isJournalIssueOfPublication75c86c5f-6889-4d7c-a9ae-73435b83b6c2
relation.isJournalIssueOfPublication.latestForDiscovery75c86c5f-6889-4d7c-a9ae-73435b83b6c2
relation.isJournalOfPublication6155825c-4ad2-4120-88a6-007286cea199
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