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The role of digitalization, infrastructure, and economic stability in tourism growth: A pathway towards smart tourism destinations

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  • Dongling Sun
  • Yang Zhou
  • Qamar Ali
  • Muhammad Tariq Iqbal Khan

Abstract

This study shows the impact of information and communication technology (ICT), inflation, economic growth, foreign direct investment (FDI), infrastructural development, and financial development on the global tourism index across all income groups. We use a generalized method of moments technique, novel index of tourism, and ICT in 130 countries from 1995 to 2019. The empirical results infer an increase in tourism due to sustained growth in ICT (all panels), economic growth (all panels), FDI (all panels), financial development (all panels), and infrastructure development (all panels). This study highlights the importance of increasing 4G networking in remote areas and introducing reliable mobile applications to promote smart tourism, which involves setting up a Tourist Information Centre to guide tourists in terms of traveling, accommodation, food, shopping, parking, history of specific places, healthcare services, weather forecasting, and emergencies. The central bank could ensure price stability by using different tools of monetary and fiscal policy while encouraging FDI and ICT infrastructure in the tourism industry, especially in developing countries. Tourism is directly associated with foreign exchange earnings, which in turn increases the financial strength of an economy. Besides, prioritizing investment in infrastructure, particularly in sanitation and waste management, drinking water supply, clean fuel management, and generation of electricity, could bolster tourism. The contribution of this study employs multiple indicators in the form of a composite index (i.e., global tourism index, ICT index, and infrastructure index). In addition, we have developed a global ICT index using several related indicators.

Suggested Citation

  • Dongling Sun & Yang Zhou & Qamar Ali & Muhammad Tariq Iqbal Khan, 2025. "The role of digitalization, infrastructure, and economic stability in tourism growth: A pathway towards smart tourism destinations," Natural Resources Forum, Blackwell Publishing, vol. 49(2), pages 1308-1329, May.
    • Handle: RePEc:wly:natres:v:49:y:2025:i:2:p:1308-1329
    DOI: 10.1111/1477-8947.12437
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