Tourism triumphs: unraveling the essence of Asia's allure through governance, FDI, and natural bounties

The tourism sector has witnessed significant expansion throughout the last century, emerging as a crucial catalyst for economic progress in numerous global governments. However, the conservation of natural and cultural heritage areas faces challenges due to tourism activities. This study investigates the role of good governance and economic performance in the international tourism industry in Asia. Panel data from 39 Asian countries spanning the years 1996 to 2022 has been analyzed using advanced statistical techniques. The findings reveal that the rule of law positively influences the tourism industry, while political instability and a lack of accountability have a negative impact. Moreover, foreign direct investment, travel and transportation services, and natural resources significantly contribute to the growth of the Asian tourism sector. These insights provide valuable implications for policymakers and stakeholders to foster sustainable regional tourism development.