As tourism organisations have a high operating cost base it is important to understand all the costs of the business and if they are necessary. Creating a healthy cash balance within the business is important for long term sustainability, during the low season and for unexpected events. In addition, understanding the cash burn of the business or of outlets within the business can allow you to determine the minimum sales requirements to open.
Within this section, there is a series of sectoral checklists to help you with cost reduction and a guidance note on how to calculate your cash burn.
