Determining Interrelationship Between Factors Impacting Foreign Direct Investment in Tourism: An ISM-based Approach

Abstract

The burgeoning spectrum of tourist demand and changing tastes and preferences calls for developing the nation’s tourism profile. India, one of the fastest-growing economies and a potential attractor of tourists, is estimated to be the world’s third-largest tourism economy by 2028 (as per World Tourism and Travel Council [WTTC] estimates) and is expected to draw massive investment in this sector. Thus, the present study aims to analyse various factors impacting foreign flows in the tourism sector and develops a hierarchical structure among the identified factors through the interpretive structural modelling (ISM) technique. A MICMAC (Matrix of Cross-Impact Multiplications Applied to Classification) analysis is performed to categorise the identified factors based on the driving power and dependence level. The interrelationships among the variables were derived from the opinion gardened from 50 research and industry experts. The results showed that political stability plays a critical component in driving other variables in the system. Also, a stable system is likely to impact the economic environment of a nation positively, thus, creating a desirable profile for investors to invest in tourism businesses or the development of destinations.

Impact of Marketing Strategy on the Competitiveness of Tourism and Hotel Businesses

“…The country's government recognised the collective superiority of various forms of tourism, including niche products such as golf, medical, gastronomic, adventure, and spiritual tourism. India, being an important untapped market supported by vast resources, offers many opportunities for suppliers in the tourism industry (Gupta et al, 2021). Ethnocentrism is a positive bias in a group that reflects a systematic positive attitude towards the home nation or its members, which as a result makes travelling within the country a higher priority than travelling abroad.…”

Interpretive Structural Modeling of Barriers to Sustainable Tourism Development: A Developing Economy Perspective

“…ISM has been adopted and validated in broad contexts and industries, including for the identification of drivers and enablers for Green Lean Six Sigma (GLS) execution in the construction industry [69], knowledge management (KM) in sustainable supply chains [70], and barriers to corporate social responsibility in the supply chain [71]. Many experts have implemented the ISM technique in tourism [11,[72][73][74]. For instance, Erol, Neuhofer, Dogru, Oztel, Searcy, and Yorulmaz [11] traced obstacles to blockchain application in the tourism sector, and Lin and Yeh [67] established tour values in the tourism sector [67].…”

Role of Constructed Environment for Tourism Development: A Global Trend Analysis base on Triangulated Review

“…The intelligent administration of health and sanitation is another appealing element, as it will reduce the number of problems encountered by both visitors and hosts (Sah et al, 2015). Another key feature in the domain is the FDI, in a country like India; the industries are open for cent percent (Sharma et al, 2012;Gupta et al, 2021). It has been shown by Comerio & Strozzi (2019) that investments made for leisure, services, and hospitality may have a directmultiplier impact, indirect-multiplier effect, and induce effect, depending on the nature of the expenses incurred by the visitor.…”