Which of the following is a potential use of Tourism Development Authority bonds?

Tourism Development Authority bonds are specifically designed to finance projects that enhance tourism and generate economic benefits for a region. This makes tourism-related infrastructure, such as hotels, convention centers, theme parks, and recreational facilities, a primary use of these bonds. Debt issued through these bonds often aims to attract visitors and encourage spending in the local economy, which supports job creation and generates tax revenue.

When municipalities utilize these bonds, the funds are typically allocated to projects that directly promote tourism, thereby creating an environment conducive for travel and leisure. This focus aligns well with the objectives of tourism development, making it the most appropriate choice among the options provided.

Other options, like funding educational institutions or building public transportation systems, while beneficial for a community, do not directly tie into the specific goals of a Tourism Development Authority, which is focused on stimulating tourism and related economic growth. Additionally, subsidizing operational costs for municipalities does not align with the capital projects typically funded through tourism bonds.