International tourism and foreign investment are closely linked in today’s globalized world. As more people travel abroad for leisure and business, they spark investments in hotels, restaurants, attractions and infrastructure in those destinations. This article explores how growing tourism drives foreign investment flows between countries.
Tourists bring foreign capital to developing economies
Thriving tourism industries in developing countries often attract substantial foreign direct investment (FDI) in transport, hospitality, entertainment and more. This FDI creates jobs and circulates new capital through local economies.
Business travel promotes trade and investment partnerships
As people travel internationally for business conventions, sales calls, and client meetings, they forge trade relationships and identify new investment opportunities abroad.
Inbound tourism stimulates FDI; business travel facilitates trade and investment deals – the link between travel and investment is multifaceted and significant.