Foreign direct investment in tourism: a systematic review of literature

Abstract

The primary objective of this systematic review paper is to examine the impact of foreign direct investment in the tourism sector in terms of economic growth, poverty alleviation, and environmental sustainability. Numerous research papers demonstrating the significance of FDI in tourism has been published showing a positive association with economic growth, poverty alleviation and environment sustainability. However, depending on the environment and policies FDI has different effects on the tourism sector. To support these economic growth, poverty alleviation and environmental sustainability governments should create policies to attract foreign direct investment in the tourism sector and it is important to encourage environmentally friendly policies which supports lower carbon emission when formulating policies to attract FDI.