Determining the Optimal Investment Policy for the Tourism Sector of a Developing Country

For developing countries trying to increase their “buying power” in the community of nations, the establishment of a tourism industry is an important strategy for the generation of foreign exchange earnings. This paper develops a decision structure whereby investment allocation decisions for touristic projects may be made. The decision structure consists of a procedure to quantify the concepts of touristic attractiveness, a mathematical model representing the allocation problem, and a procedure for the solution of the model.