Tourism Investment Research Articles

Examining the Nexus between Tourism Investment, Renewable Energy Consumption and CO2 Emissions in Indonesia

The tourism industry undoubtedly contributes positively to economic growth. However, numerous studies show that tourism can have diverse impacts on environmental quality. This study focuses on exploring the correlation between investment in the tourism sector, the renewable energy consumption, and the contribution of tourism-related sectors to CO2 emissions within the period 2000 – 2017 using a case study in Indonesia. By employing the distributed lag method with the Koyck approach, this study found that investment in the tourism sector in Indonesia has a statistically positive and significant correlation with CO2 emissions. Conversely, renewable energy consumption, as the control variable, exhibits a significant negative correlation with CO2 emissions. The findings suggest that the existing investment policies in Indonesia are not aligned with environmental sustainability, supporting the pollution haven hypothesis. To address this, the study underscores the need for stronger commitments to transitioning from fossil-based to renewable energy sources, ensuring that future tourism investments contribute to both economic growth and environmental preservation.

The Role of Public Administration Expenditures in Tourism Development – a Comparative Analysis of Two Valuable Geoheritage Areas

This study examines the relationship between public administration expenditure and the development of the tourism sector in four Administrative Territorial Units (ATUs) with high natural potential between 2000 and 2018. It first analyzes the public expenditures of the ATUs, classifying them by function and calculating the share of each expenditure in the total. Next, the study assesses local economies using the Classification of National Economic Activities (NACE) to determine the contribution of tourism. Finally, the two databases are correlated to explore the impact of public spending on tourism growth. The findings provide a foundation for developing new methodologies to assess public investment in tourism and raise awareness of its importance. Keywords: tourism, revenues, expenditures, public administration, local economy

The Contribution of Tourism Investments and their Impact on the Local Economies of Kenya: A case study of Nakuru County

Tourism is one of the fastest-growing sectors in the world. It contributes about 10% of the global Gross Domestic Product. It further creates about 5% of direct jobs. The sector has been shown to have a strong multiplier effect on all aspects of the economy. Globally, about 20% of jobs generated over the past five years are related to tourism. Tourism development stimulates growth by attracting new foreign direct investment (FDI) and building new facilities. This study sought to establish the contribution of hospitality and tourism investments to the local economy of Kenya, taking Nakuru County as a case study. The study adopted a descriptive survey research design, accommodating qualitative and quantitative methods; both primary and secondary data. Purposive sampling was used to select 51 out of 151 tourism and hospitality investments in the study area. Secondary data were obtained from tourism and hospitality published and unpublished reports from government and non-governmental organisations. Quantitative data were analysed through descriptive statistics, and content and regression analyses. Salaries of staff, park entry fees, and curio shops constituted 2%, 21.3% and 0.5%, respectively, of the total revenue generated in the study area. Regression analysis results indicate that tourism investment accounted for a 36.6% improvement in the economy, as shown by the values [R Square=0.366, F (1, 151) = 87.311, p<0.05]. Tourism and hospitality investments contributed Kshs 10.12 billion, which was 54% of Nakuru County's gross domestic product, showing that tourism and hospitality investments contribute significantly to the local economy and, by extension, to the country’s economy

Sustainable Tourism Investment and Development in Metro City, Lampung

Objective: Investment in the development of tourism in an area needs a policy that has an impact on business actors. Tourism is a necessity for entertainment. It has the potential for the economy of local communities and becomes regional income. Theoretical Framework: The theories in this article include Graham's theory of investment, which emphasizes long-term investment and diversification. Investment objectives, economic impact on local communities, and the environment. Method: Mixed methods with MAXQDA tools were used in this study. The research location is Metro City, Lampung Province, Indonesia, with a literature review of reputable publications, a survey of 21 tourist destinations, and a questionnaire of 399 respondents. Quantitative and qualitative data collection and analysis were integrated and then described. Results and Discussion: The results showed that 21 tourist destinations in Metro City were active and still developing at 66.7%, while tourist destinations that were inactive or not developing were 33.3%. Destinations that still exist and develop are 14 tourist destinations while 7 destinations are damaged and no longer developing. In addition, UMKM for the community has the opportunity to increase community income. Research Implications: Tourism and investment as a factor that contributes to the region with government policies due to knowledge, managerial skills, marketing strategies, and distribution and production networks that benefit the local economy. Originality/Value: This research contributes to the literature with the hats of investment, tourism, society, and local government policy. The relevance of this study is that the condition of Metro City tourism development is low, and investment innovation in the tourism sector is needed.

Tourism and the livelihood of the people of a residential community in Vietnam's tourism destination

This paper investigates the long-term relationship between factors affecting people's livelihoods after tourism investment in the tourism sub-region south of the Red River in Vietnam. The study used survey data and multiple linear regression econometric models from the three provinces of Ninh Binh, Nam Dinh and Thai Binh in the South Red River tourism sub-region from February 2023 to August 2023. Research results show that all eight factors are statistically significant and impact people's livelihoods. These seven factors have a positive impact while one factor harms their livelihoods. The three factors that have the most positive impact on livelihoods are (1) employment in the tourist destination, (2) local government policies and (3) agricultural land quality. The remaining factors such as (4) social culture, (5) infrastructure, (6) jobs outside tourist destinations and (7) social welfare have the same impact but less impact. Meanwhile, the factor that harms their livelihoods is the amount of agricultural land. In addition, employers in the tourism destination and local government policies continue to have an important impact on the livelihoods of the local population to assess the sustainability of the impact factors while less impact variables are excluded. The research results are the basis for proposing recommendations to diversify people's livelihoods after tourism develops in the southern Red River tourism sub-region.

Linking Tourism Development with Residents’ Well-being through Livelihood Capitals in Northern Tanzania

This study aimed at evaluating the link between tourism development, well-being and residents’ access to livelihood capitals when confounding variables are controlled. The study used the quasi-experimental design. Well-being condition was determined through the Livelihood Capital Index after controlling for socio-economic covariates among matched samples of 413 tourism beneficiaries and 421 non-beneficiary agro-pastoralists living in three gateway tourism destination communities namely Burunge, Lake Natron and Loliondo in Northern Tanzania. Selected communities experienced a development stage of tourism destination life cycle. This study largely relied on analysis of quantitative data by calculating the Livelihood Capital Index. However, qualitative data from 24 key informants, through Focus Group Discussions complemented the quantitative data. The study established that linkage between tourism development and well-being is facilitated with residents’ access to livelihood capitals. Basing on difference in the average treatment effect of 0.087 (8.7%) in the livelihood capital index, which was statistically significant (p <0.001), the study concluded that residents’ well-being as a function of livelihood capital status is enhanced more with tourism than without tourism, especially in financial, social, physical and human capitals. Therefore, the study recommended that efforts to sustain tourism development in enabling resident access to livelihood capitals that underpin their well-being should strike a balance between residents’ need for cultivation and grazing at one hand and tourism investment on communal land on the other hand.

Impacts on Rural Community Development and Governance by Different Land Ownership: A Comparative Study Based on Two Villages in China

AbstractThe capability of rural community governance is significantly impacted by the different types of land ownership when capital investment in rural tourism to achieve rural revitalisation. The outcomes of which profoundly affect sustainable rural development. This study, by utilising a theoretical framework using double movement theory, aims to assess the impacts on rural community governance by two different land ownership models, the Enterprise-based Model (EBM) and the Community-based Model (CBM), in the process of capital flow to the countryside (CFC). Case studies of the two villages were adopted to examine and explore the logic of interaction between stakeholders and reveal the internal mechanism of rural community governance. The results of this research indicate that the CBM has considerable advantages over the EBM. In the CBM, the village collective retains land ownership without fully marketising, which allows villagers to maintain their bargaining power with investors whilst increasing their local awareness. In the EBM, however, the local government promotes the conversion of land ownership. The villagers benefit more from one-time acquisition but lose sustainable benefits created by local development. Stakeholders call for the need to create a development model beyond the market economy by maintaining China's rural land system in the process of CFC. In this regard, this paper provides an original contribution.

Financial and Credit Regulation as a Tool for Attracting Investments in Tourism and the Hotel and Restaurant Business of Ukraine

This research investigates into the significant role of financial and credit regulations in promoting investments within Ukraine's tourism sector, with a specific emphasis on the hotel and restaurant industry. By integrating mathematical modelling and empirical data analysis, the study uncovers how regulatory environments and credit accessibility jointly influence investment decisions. The development of a differential equation model quantitatively reveals that measures aimed at regulatory simplification and enhancing credit conditions are closely linked with increased investment levels. It identifies critical thresholds for regulatory simplification and credit availability, where indices exceeding 0.45 and 0.55, respectively, are associated with substantial growth in investment rates. This assertion is substantiated by empirical evidence from a survey of 250 industry stakeholders, highlighting the significant positive effects of these regulatory and financial adjustments on investment intentions. The findings highlight the necessity of precise financial and credit regulatory reforms to improve Ukraine's tourism investment climate. The practical significance of this research lies in its potential to guide policy formulation aimed at unlocking the investment potential of Ukraine's tourism sector, ensuring its growth and sustainability in the global context.

Could tourism investments influence financial inclusion in the European Union countries?

ABSTRACT This investigation approaches the bidirectional relationship between tourism investments and financial inclusion. Principal component analysis was employed to obtain the financial inclusion index, and the panel vector autoregressive model was applied to analyze a panel of 25 European Union countries from 2005 to 2020. The empirical findings indicate a bidirectional and negative relationship between tourism capital investment and financial inclusion. Additionally, the outcomes reveal that both tourism capital investment and ICT diffusion positively affect economic growth and that financial inclusion negatively affects the economic growth of EU countries. In turn, economic growth promotes financial inclusion. Furthermore, financial inclusion enhances ICT dissemination, while tourism capital investment is linked to decreased ICT expansion. These outcomes indicate that policymakers and financial institutions must navigate this intricate landscape, devising strategies that bolster financial inclusion and support the tourism sector rejuvenation, recognizing the pivotal role both play in fostering a resilient and inclusive economy.

Evolution Pattern of Rural Tourism Investment Location Choice from the Perspective of Human-Land Relationship System: Based on a Case Study of Zhejiang Province, China

Evolution Pattern of Rural Tourism Investment Location Choice from the Perspective of Human-Land Relationship System: Based on a Case Study of Zhejiang Province, China

Contribution of Tourism Investments and their Impact on the Local Economies of Kenya: A Case Study of Nakuru County

Tourism development stimulates growth by attracting foreign direct investment and building new facilities and partnerships. This study sought to establish the contribution of hospitality and tourism investments to the local economy of Kenya, taking Nakuru County as a case study. The study adopted a descriptive survey research design, accommodating qualitative and quantitative methods; both primary and secondary data. Purposive sampling was used to select 51 out of 151 tourism and hospitality investments in the study area. Secondary data were obtained from tourism and hospitality published and unpublished reports from government and non-governmental organisations. Quantitative data were analysed through descriptive statistics, content and regression analyses. Salaries of staff, park entry fees, and curio shops constituted 2%, 21.3% and 0.5%, respectively, of the total revenue generated in the study area. Regression analysis results indicate that tourism investment accounted for a 36.6% improvement in the economy, as shown by the values [R Square=0.366, F (1, 151) = 87.311, p<0.05]. Tourism and hospitality investments contributed Kshs 10.12 billion, which was 54% of Nakuru County's gross domestic product, showing that tourism and hospitality investments contribute significantly to the local economy and, by extension, to the country’s economy

Environment and blue tourism: Moving towards sustainability—6th maritime tourism observatory for Skyros Island

Ports are some of the most significant entry points for Greek tourism investments and can be characterized as “development tools” for the country, both at the local and national level. The blue economy is a recent example of economic development, globally promoted as a way to achieve sustainability in maritime and coastal areas. Linaria Port has been accredited by the United Nations as a “The blue port with a shade of green,” constituting an environmentally sustainable community capable of promoting responsible environmental behavior both within the local community and among tourists. The port has been highly competitive in achieving high sustainability standards and mainly operates in ways that complement environmental quality. It has presented innovative, competitive, and sustainable solutions since 2010. This research aimed to collect primary and secondary data on tourist preferences to evaluate these services. Evaluation was conducted through anonymous questionnaires divided into two parts: the first part concerned the tourist profile, and the second part concerned tourists’ opinions on the services and facilities of the Port and the island. In the evaluation of the port, 91% of respondents rated the marina positively compared to other ports in the country, while 77% ranked the port of Skyros in a good position compared to other European or international ports. The overall quality of the tourist product was positively evaluated at 89%, while 90% of visitors were generally satisfied with the overall services offered. Moreover, 95% would return to Skyros within the next years.

Direct foreign investment in tourism in the Dominican Republic.

This study analyzes Foreign Direct Investment (FDI) in tourism in the Dominican Republic. A mixed methodology was used that included literature review and focus groups with experts. Government and private reports were analyzed to understand current trends and focus groups were convened to discuss and validate the findings. The results show that FDI in tourism stands out for its contribution to Dominican economic development, contributing $7,673 million dollars between 2012 and 2022. The identified strengths include a strategic location, robust infrastructure, and favorable business climate. Emerging opportunities are related to the diversification of tourism offers and increased connectivity. However, dependence on tourism and job training gaps present challenges. Furthermore, threats such as regional competition and environmental impacts were also highlighted. In conclusion, it is highlighted that FDI in tourism is fundamental for the Dominican economy, but policies are required that promote the diversification and sustainability of the sector. It is suggested to improve infrastructure and job training to enhance tourism and its impact on GDP. The study highlights the need for a clear legal framework and the importance of tax incentives to attract more investments.

The Impact of Infrastructure Development, Education, Tourism, and Agriculture on Regional Economic Growth in Indonesia

In order to better understand the complex links between infrastructure development, education, tourism, agriculture, and regional economic growth in Indonesia, this study uses structural equation modeling with partial least squares or SEM-PLS. The research makes uses of a 287-observation dataset and applies rigorous measurement model evaluation, bootstrapping analysis, structural model estimation, and model validation against multiple fit indices. The results show a strong positive correlation between each sector—agriculture, tourism, education, and infrastructure development—and regional economic expansion. The necessity for comprehensive, integrated development strategies is highlighted by the interconnectedness of these interactions. In order to promote balanced and resilient regional economic growth, the findings provide policymakers with useful insights and highlight the significance of ongoing investments in infrastructure, education, and sustainable tourism and agricultural practices.

Spillover effects and influencing factors of tourism eco‐efficiency for sustainable development: A case study of cities in the Yangtze River Delta

AbstractTourism often brings about negative environmental impacts. Tourism eco‐efficiency (TEE) and its spatial coordination are of great significance for sustainable tourism development and environmental protection in the Yangtze River Delta (YRD). TEE index system was established and applied in this study. The inter‐city TEE spatial correlation network is established by the modified gravity model and analyzed by social network analysis (SNA). Spatial Durbin model (SDM) was used to analyze the spatial spillover effects of the two centrality indicators of the network. Based on fuzzy set qualitative comparative analysis, we analyzed TEE enhancement configuration. The results show that: TEE in 26 cities in the study area has improved overall; the phenomenon of unbalanced development within the region still exists. In addition, the TEE of each city in the spatial correlation network of TEE in the YRD urban agglomeration is connected with each other, and there is a significant negative spillover effect. TEE is mainly affected by the level of economic development, industrial status of the tourism industry, tourism industry concentration, tourism investment level, tourism resource endowment, urban landscaping, and information development level. The combination of these factors and TEE can form five configuration patterns for TEE enhancement. This study combines SNA and SDM for the first time, and the conclusions obtained can more deeply describe the spatial correlation between different urban eco‐efficiency in the YRD. Aiming at the sustainable development of regional tourism, this study provides help for strengthening the protection of tourism ecological environment in the YRD.

Nonparametric Smoothing Spline Approach in Examining Investor Interest Factors

The nonparametric approach is an appropriate approach for patterns of relationships between predictor variables and response variables that are not or have not been known in form. In other words, there is no complete information about the pattern of relationships between variables. Curve estimation is determined based on relationship patterns in existing data. The nonparametric approach has great flexibility for estimating regression curves. This study aims to form a model on investor interest factors in improving tourism investment decisions with a nonparametric approach. The nonparametric method used is the smoothing spline regression method. The smoothing spline method is used because the modeling results from the smoothing spline approach can follow the relationship model between variables contained in the data. Thus, this method really helps researchers to model relationships between variables that are not linear and whose linear form is unknown. The results of the analysis showed that the nonparametric smoothing spline regression analysis method could model data by 94.63%, indicates that data variance can be explained by 94.63% with models, while other variance outside the study explain the remaining 5.37%. That is, investment motivation is one of the most important factors to improve investment decisions.

Tourism Investment and Land Use Change in the Northern Piedmont of the Western High Atlas (1989-2022)

This study aimed to investigate the profound influence of tourism investment on the Northern Piedmont of the western High Atlas over 34 years in response to the escalating global trend of tourism-driven land-use changes, particularly in the Marrakesh region. In this context, the driving forces behind the significant transformation of agricultural land and bare soils into tourism-driven investments were evaluated as well as the critical role of accessibility in shaping spatial shifts. The method used high-resolution (10 m) satellite images from Spot 1 (1989), Spot 5 (2003 & 2010), and Sentinel 2 (2022) through remote sensing methods to investigate the historical land-use changes over 34 years. The results showed significant transformations in land-use based on the correlation between improved transportation infrastructure and the growth of tourism ventures, underscoring the role of roads and facilities as catalysts. The analysis suggested the need for reflection on the consequences of unregulated tourism growth, aiming to balance economic benefits with environmental and socio-cultural challenges in sensitive regions. Although tourism significantly contributed to economic development and employment opportunities, it also posed risks when not managed prudently. This underscored the need to strike a harmonious equilibrium between economic prosperity as well as preserving the unique natural beauty and cultural heritage of the region. The insights provided in this analysis had broader implications for responsible planning and management of tourism development in sensitive ecological and cultural regions. In conclusion, a thoughtful and sustainable approach was needed to safeguard the delicate balance between economic prosperity and environmental preservation.

Climate vulnerability and capital investments in tourism

ABSTRACT This study explores the relationship between climate vulnerability and capital investments in tourism across 165 countries, considering the moderating role of readiness. Findings reveal that an increase in vulnerability imposes a substantial economic toll, reducing capital investments. However, a country's preparedness mitigates and sometimes nullifies these adverse effects. Moreover, the improvement in vulnerability presents greater prospects for countries with low readiness, as they benefit more by mitigating the vulnerability.

STATISTICAL MODELING OF TOURISM INVESTMENT DECISIONS IN INDONESIA USING SEMIPARAMETRIC APPROACH

The tourism potential in Indonesia is very large considering that Indonesia consists of tens of thousands of separate islands. Indonesia has many diverse landscapes, with all its nature wealth and biodiversity in it is an attraction for investors who want to invest in Indonesia. The existence of relationships between variables that are linear and nonlinear, where no nonlinear pattern is known, requires a semiparametric approach. This study aims to apply a semiparametric approach to model people's investment decisions in tourism in Indonesia. The data used is in the form of respondents from investors who invest in tourism in Indonesia from the 2022 National Competitive Basic Research (PDKN) as many as 100 respondents. This study uses the semiparametric path analysis method to model tourism investment decisions in Indonesia. The results show that regulatory variables and investment interest variables have a significant and positive effect on investment decision variables. A diversity coefficient of 60.2% indicates that data diversity can be explained by 60.2% with models, while other variables outside the study explain the remaining 38.8%. In other words, the regulatory variable (X) and the investment interest variable (Y1) can influence the investment decision variable (Y2) by 60.2%.

Management and Utilization of the Culture of Customary Villages as “Local Wisdom” in Tourism Development in Bali

Indonesia is a country that has many tourism provinces, one of which is Bali Island. One of the factors that supports the development of tourism in Bali is local wisdom. The purpose of this study is to determine How the management and utilization of Traditional Village Culture as “local wisdom” to support tourism development in Bali and What are the inhibiting factors in the management and utilization of Traditional Village Culture as “local wisdom” can play a role in supporting tourism development in Bali. This study uses the type of empirical legal research. The researchers found several obstacles that became obstacles, especially related to the availability of land or land that will be used as the location for the construction of tourism facilities and also the community's concern about the transfer of ownership of customary land to investors and the concern about the use of customary land that is not in accordance with local cultural values. that has the potential to damage the environment and the sustainability of Balinese traditions because in reality, Customary Land for the Traditional Village Community in Bali is their identity and identity that has been passed down from generation to generation. Therefore, indigenous peoples who act as guardians of local culture are expected to continue to develop their knowledge by paying attention to contemporary issues that require adaptation to solve the problems at hand. To ensure that the management and utilization of traditional village culture in Bali to support sustainable tourism does not damage the natural beauty and culture of Bali, investment can be focused on the development of environmentally friendly facilities and the implementation of programs to promote cleanliness and environmental conservation. By linking tourism investment with Balinese culture, it will increase its added value because tourists can not only enjoy the natural beauty, but also Balinese culture. This provides a great opportunity for Bali to attract investors and foreign tourists visiting Bali.