Study on the Optimal Investment Timing of Visitor Attractions under the Uncertainty of Tourism Demand

The investment of visitor attractions (IVA) is irreversible and uncertain. Tourism demand is the main uncertain factor affected it. Based on the Real Options Theory, this paper studies the optimal investment timing of visitor attractions (VA) under the uncertainty of tourism demand, and does the numerical analysis to the parameters in the model. The conclusion is: the greater the uncertainty of tourism demand is the greater value of the project and the options are. So the investment company tends to wait rather than invest immediately.