Tourism-led economic transformation in developing countries: A systematic literature review

Abstract

Tourism-led economic transformation induces structural change in developing economies, enhancing productivity and diversification. This PRISMA-based systematic review analyzed 28 peer-reviewed articles (2010–2024). Findings reveal that transformation emerges from a complex ecosystem integrating governance quality, institutional capacity, tourism resources, infrastructure and host community attitudes, rather than governance alone. Critically, transformation requires deliberate reinvestment of tourism revenues and strengthened backward linkages with local sectors. Three spatial patterns emerge, including enclave economies (e.g., Caribbean islands) with high leakage, linkage-rich systems (e.g., Vietnam) exhibiting deep local integration, and stagnant models (e.g., Sub-Saharan Africa) showing limited structural change despite visitor growth.