INTERNATIONAL MARKET ENTRY STRATEGIES IN TOURISM: A COMPARATIVE ANALYSIS OF GLOBAL EXPANSION MODELS, ENTRY MODES, AND GOVERNANCE CONSTRAINTS
Abstract
International tourism enterprises, hotels, tour operators, travel distribution platforms, and destination-facing service providers expand globally through diverse market entry modes ranging from low-commitment contractual arrangements to high-commitment foreign direct investment (FDI). Tourism investment data indicates the persistence of cross-border investment flows and highlights the importance of hotels and tourism as a major share of tourism-cluster FDI, while also showing growing activity in travel arrangement services and software/IT services within tourism-related investment categories. Yet entry strategy in tourism is uniquely constrained by destination-specific regulation, asset specificity (immovable real estate, brand standards), seasonality, service quality risks, and the “social license” required to operate in places where tourism affects housing, labor, water, and heritage.
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