-
Journal menu
- General information
- Editorial Board and External Reviewers
- Instructions for authors
- Paper reviewing
- Publication Ethics and Malpractice Statement
- Journal Policies
- Order hard copies of the journal (for institutions)
- Order hard copies of the journal (for individuals)
- Article Processing Charge
- Feedback from stakeholders
- Journal’s Open Access Statement
- Statement on the Use of Generative AI
The contribution of foreign direct investments to the development and competitiveness of the tourism industry: Toward a sustainable growth
Download This Article
Stavros G. Efthimiou 
This work is licensed under a Creative Commons Attribution 4.0 International License.
Abstract
Foreign direct investments (FDI) today are one of the major engines of growth and competitiveness in tourism (World Travel and Tourism Council [WTTC], 2024; Bhatt et al., 2024). The current study addresses the multifaceted contribution of FDI to this sector, delineating its potential role in transforming infrastructure development, enhancement in the quality of services, and integrating newer innovative practices within the sector. This paper will draw from empirical studies and theoretical perspectives on the contribution of FDI to the development and competitiveness of the tourism industry. The paper also investigates the varied relationship that is developed between FDI and local economies, identifying both the opportunities that come with, and the challenges posed by FDI. Among others, the following questions will be explored: what effect FDI has on tourism development, tourism challenges and opportunities faced by FDI, and what role policy plays in facilitating tourism-based FDI. The findings show the importance for integrated policy approaches in aligning FDI inflows with sustainable tourism development goals and ensuring a balanced and inclusive growth path and put forward recommendations for how stakeholders can optimize the benefits of FDI while addressing its adverse impacts and develop strategies that enhance the resilience and sustainability of tourism in a highly competitive global environment.
Keywords: FDI, Contribution, Tourism, Development, Competitiveness
Authors’ individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.
Declaration of conflicting interests: The Author declares that there is no conflict of interest.
JEL Classification: F23, Z30, Z32
Received: 13.04.2025
Revised: 22.05.2025; 29.05.2025
Accepted: 24.06.2025
Published online: 27.06.2025
How to cite this paper: Efthimiou, S. G. (2025). The contribution of foreign direct investments to the development and competitiveness of the tourism industry: Toward a sustainable growth. Corporate Governance and Sustainability Review, 9(3), 24–44. https://doi.org/10.22495/cgsrv9i3p2
