The Role of Foreign Direct Investment in the Development of Iran's Tourism Industry: Technological Transformation and Strategic Growth

Abstract

This study explores the significant influence of Foreign Direct Investment (FDI) on the evolution of Iran's tourism industry from the late 1970s to the present. The research analyzes how the Iranian government's shift toward liberalizing its economy attracted substantial FDI, particularly in the tourism sector, which has become a pivotal component of Iran's economic growth. This paper also investigates the comparative effects of FDI in coastal and inland regions, highlighting the role of infrastructure, hospitality, and travel services in boosting Iran's competitiveness as a tourist destination. Furthermore, the paper addresses the growing importance of digital technologies, including smartphones and internet connectivity, in reshaping tourist behavior and organizational practices. The integration of digital platforms and the challenges of cyberloafing and nomophobia within the hospitality sector are also discussed. By comparing the impact of FDI on Iran and India's tourism industries, the study offers strategic recommendations for maximizing FDI's effectiveness in promoting sustainable development in Iran. The findings suggest that investment in both physical and digital infrastructure is critical for enhancing tourism's contribution to Iran's broader economic growth.

Keywords: Foreign Direct Investment (FDI), Tourism Industry, Economic Development, Digital Technologies, Sustainable Development