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Foreign Investment in Tourism and Small Island Developing States

This paper presents evidence from a global study of the scale and impact of foreign investment in tourism, highlighting the implications for small island developing states (SIDS). It draws upon findings from a two-year United Nations Conference for Trade and Development (UNCTAD) research and policy analysis project based on a global survey of transnational hotel groups with a presence in developing countries and in-depth case studies of domestic and international investment in tourism in twelve countries. The project aimed to provide empirical evidence to help policymaking in developing countries that wish to benefit more from tourism foreign direct investment (FDI). It does not favour foreign investment above domestic investment, but aims simply to provide more information on an aspect which is increasingly a policy priority for developing countries and which is not frequently addressed in empirical terms in the literature.