FOREIGN DIRECT INVESTMENT IN THE TOURISM SECTOR

Abstract

This paper presents the trends of direct foreign investments, their lifting power, as well as their role in the development of tourism, as one branch of economy that has a constant and steady growth and is also one of the dominant socio-economic activities. The shortage of capital is the main obstacle to development of tourism in many countries, especially in the developing countries. This paper highlights the importance of the influx of foreign investment, in order to sustain a successful growth of the tourism as an industry. The growing importance of a direct foreign investment, which stimulates the economic development of a country, has made investment boosting one of the main activities of many governments, not only in developed countries but also in developing countries as well as the countries in transition. In this paper, we mention Montenegro, which has positioned itself as a regional leader in creating a favorable investment environment for foreign investors, and has the largest share of FDI in the tourism sector of Montenegro.