Destination Development and
Institutionalization Strategies
In the OIC Member Countries
59
be flexible. To attract investment, governments can facilitate access to credit, offer tax incentives, subsidies
and streamline investment approval process times. 209
To develop strong legislation, governments must consider the following implications. The rules,
regulations, and requirements governing investment must be clear and easy to find (i.e. labor laws,
property laws and rulings must be gathered and clear) 210
 Zoning laws: Laws controlling the location and boundaries of businesses; laws controlling the
limits to development in specific areas that factor in height, density, construction and
environmental impact
 Licenses, certification and approvals: One category of tourism businesses may have restrictions
regarding the type of business they can operate. It is important to present investors with clear cut
license and certification application approvals so they can quickly operate.
 Land use and ownership: Several countries prevent foreigners from investing, leasing or buying
specific areas of land within a territory.
 Imports: Import equipment, supplies, permits, licenses, and restrictions must be outlined.
Governments need to provide mandatory waiting periods for import permits or duty-free status
on imports, licensing for commodity imports, foreign exchange requirements, quotas, bans of
products, and approval for advance payments.
 Taxes and customs: Costs of taxes and customs can impact international price competitiveness
 Foreign exchange rates: Investors will need access to local currency at market rates. Repatriation
of foreign currency can determine a country’s ability to attract investment.
 Air access: Aviation infrastructure requirements, airline routes, number of flights, carrying
capacity and limits to the flow of goods must be outlined.
 Tourism infrastructure requirements: Water and electricity usage, waste and sewage treatment,
or telecommunications usage.
 Environmental sustainability: Water pollution and waste management regulations must be clearly
defined to reduce risk of long term viability
 Capital raising requirements: Funding sources and investment management restrictions must be
outlined
209Taskov, N., Metodijeski, D., Dzaleva, T., & Filipovski, O. (2011). ENTREPRENEURSHIP IN TOURISM INDUSTRY LEAD TO BUSINESS
BENEFITS. 2nd BIENNIAL INTERNATIONAL SCIENTIFIC CONGRESS, 1-12. doi:10.1.1.472.4645
210 Neblett, J., & Green, M. B. (2000). Linking Development, Indigenous Entrepreneurship and Tourism, with Special Reference to
Barbados. Geography Online, 1(2). Retrieved fro