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Journal cover: Tourism Review

Tourism Review

ISSN: 1660-5373

Online from: 1946

Subject Area: Tourism and Hospitality

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Key factors influencing foreign direct investment in the tourism industry in South Africa

Document Information:
Title:Key factors influencing foreign direct investment in the tourism industry in South Africa
Author(s):J.A. Snyman, (Senior Lecturer, Southern Business School, Helderkruin, South Africa), M. Saayman, (Head of the Institute of Tourism and Leisure Studies in the School for Business Management, North West University, Potchefstroom, South Africa)
Citation:J.A. Snyman, M. Saayman, (2009) "Key factors influencing foreign direct investment in the tourism industry in South Africa", Tourism Review, Vol. 64 Iss: 3, pp.49 - 58
Keywords:Consumer marketing, Decision making, Government policy, International investments, South Africa, Tourism
Article type:Research paper
DOI:10.1108/16605370910988827 (Permanent URL)
Publisher:Emerald Group Publishing Limited
Acknowledgements:Received: 8 January 2009. Accepted: 2 April 2009.

Purpose – The purpose of this paper is to identify the key factors influencing foreign direct investment (FDI) in the South African tourism industry. This is done in order to successfully attract and sustain FDI as well as to remain competitive.

Design/methodology/approach – A survey was conducted by means of questionnaires that were completed by various estate agents in South Africa that specialise in dealing with foreign direct investors. The descriptive statistical analyses were performed by using the Statistical Programme for Social Sciences (SPSS 15.0). A factor analysis with Promax rotation was performed and five key factors were identified.

Findings – The findings indicated the following key factors: namely perception and infrastructure, government and policy, economy, competitiveness, and nature. The results also indicated which type of product is preferred by which international market.

Practical implications – The results can be used to assist government policy on FDI as well as to assist marketers to focus on specific issues in their marketing campaigns.

Originality/value – The paper makes the following contributions: first, it gives greater insight and understanding of the decision making of foreign investment in the South African industry. Second, it is the first time that this research has been attempted in South Africa. Third, it shows the close relationship between FDI marketing and tourism marketing.

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