One of the most common questions I hear from regions is:
“Who should pay for investment planning?”
Behind this question is often an expectation that such work can — or should — be done for free.
In reality, this assumption is one of the key reasons why many regions fail to attract funding.
The Cost of “Free”
Across different countries and programmes, I have seen countless strategies developed with minimal or no budget.
They are often:
- generic
- disconnected from real investment opportunities
- not linked to implementation
As a result, they remain documents — not tools.
And most importantly:
They do not lead to funding.
Why Investment Planning Is Not Just Another Study
There is a fundamental difference between:
- a descriptive strategy
- and an investment-oriented planning process
The latter requires:
- market analysis
- financial structuring
- stakeholder alignment
- project pipeline development
This is not “documentation”.
This is project engineering at regional level.
Who Actually Benefits
If we look honestly, several actors benefit from proper investment planning:
- regional and local governments
- development agencies
- donor programmes
- private sector partners
Each of them has a stake in the outcome.
So Who Should Pay?
In practice, there are three main models.
1. Public Sector (Regions / Municipalities)
This is the most direct model.
If a region wants to attract investment, it needs to invest first — in structuring opportunities.
Without this step, promotion has no foundation.
2. Donor-Funded Programmes
In many cases, donors finance planning processes.
However, donors expect:
- quality
- structure
- clear outcomes
They do not fund generic exercises.
3. Hybrid Models (Public + Donor / PPP)
Often the most effective approach.
Shared ownership leads to:
- stronger commitment
- better implementation
- higher chances of funding
The Real Question
The question is not:
“Who should pay?”
The real question is:
“Is the region serious about attracting investment?”
Because if the answer is yes, then investment in structuring is unavoidable.
Why This Matters
Regions that rely on “free strategies” often:
- repeat the same cycles
- organise more workshops
- produce more documents
But funding does not come.
Regions that invest in proper structuring:
- develop clear projects
- speak the language of investors
- move towards implementation
From Cost to Investment
Proper investment planning is not a cost.
It is the first step in unlocking funding.
And like any investment — it requires commitment.
If your region is exploring how to move from strategy to real funding,
you can explore a structured approach here:
👉 Regional Investment Blueprint service page
About the Author
Oleksandr Fainin is a Destination Development & Management Consultant with 30+ years of experience in sustainable tourism, post-conflict recovery, and strategic planning. He has worked with USAID, international NGOs, and local governments across Europe, the Caucasus, Central Asia, and the Middle East.
He helps destinations unlock their potential through practical strategies rooted in trust, dignity, and impact.
