THE IMPACT OF MACROECONOMIC COUNTRYSPECIFIC FACTORS ON INTERNATIONAL EXPANSION OF US HOTEL CHAINS

Abstract

While our understanding of the issues surrounding foreign direct investment (FDI) in tourism is limited (Endo, 2006), even less is known about the role of FDI and other macroeconomic variables in the lodging segment of the tourism industry. This research fills this gap by examining the population of U.S. hotels with international operations with respect to FDI, Market Interconnectedness and Tourist Flows in foreign countries. Additional examination is performed separately on high-income and middle-income countries. Study findings suggest that Market Interconnectedness is highly significantly and positively correlated with presence of U.S. hotel firms abroad, while FDI and Tourist Flows are not. However, results somewhat differ with respect to high-income and middle-income countries.