ABSTRACT
Foreign Direct Investment (FDI) is viewed as a tool for economic growth but also often as a panacea for all ills. While it has the potential to raise productivity, generate employment, enhance competitiveness of the domestic economy through transfer of skills and technology, reinforce infrastructure and contribute to the long-term socio-economic development of places, the effects on host populations must be considered and local resident perceptions must also be acknowledged to provide a more holistic picture. This chapter is based on a wider PhD study undertaken by Jönsson, supervised by Palmer. It determines the impacts of tourism FDI (TFDI) on local people, taking into consideration experienced realities of TFDI impacts. Key debates in TFDI and research gaps are emphasised to establish this chapter’s contribution to academic knowledge. The chapter is organised into two thematic sections; (1) micro and macro level impacts of TFDI, types and trends, (2) local resident perceptions of TFDI and links these to its impacts. Theoretical approaches used to examine local resident perceptions of tourism per se are discussed and applied specifically to TFDI impacts. The chapter is concluded by emphasising the value of intersecting economic theories and the perceptions of affected local communities in analyses of TFDI. Stakeholder impact relations and the relevance of Dunning’s (1979) OLI framework and Social Exchange Theory in the examination of local perceptions of social and economic TFDI impacts are highlighted. Opportunities for further research that support a shift away from neo-liberalist tenets to consider stewardship of more inclusive economic development and the capturing of local community experiences are suggested.
