Digitalisation as a vehicle of expansion of tourism industry

Despite increased interest both from scholars and policymakers, most research on digital transformation in the tourism sector focuses on demand-side factors. However, supply-side factors, specifically how the adaptation of information and communication technology benefits the industry, are somewhat scant. Applying Institutions and Economic Theory , this study examines the role of digitalisation in tourism development by employing the advanced bias-corrected method of moments dynamic panel model along with the Arellano-Bond, Arellano-Bover/Blundell-Bond method of moments for around 123 countries, including economic categorisations from 1995 to 2020. The results reveal that tourism is found to be positively and significantly correlated with digitalisation. Notably, mobile phone subscriptions consistently show a significant effect on tourism demand for all countries, including developing countries. The findings imply that touristic destinations in developing economies started to follow the path of digital tourism by enhancing human connectivity between local communities and tourists through digital technologies.