Abstract

This study explores the moderation effect of digitalization and governance quality on tourism development using cross sectional panel data for over 150 countries during the period 1995–2018. Employing governance quality as a moderator variable, the evidence argues that digitalization can lead to tourism development along with an increase of control variables like GPD per capita, price index, cultural and political stability etc. Even so, the primary estimation reveals a significant positive effect on tourism development in the presence of both composite and individual level of governance. In addition, marginal impact of digital adaptation is also found more vigorous impact with higher level of governance on international tourism.