African Journal of Hospitality, Tourism and Leisure (Jan 2020)
Introducing the Investment Redistributive Incentive Model (IRIM): A new redistribution perspective in tourism investment and beyond
Abstract
Tourism holds the hopes of many in creating job opportunities for the masses of the unemployed globally. The poor growth of economies has failed to address the problems of unemployment, poverty and inequality. For growth to be impactful, foreign direct investment is considered one of the sources of the required impetuses. It is possible to incentivize both foreign (direct) and local investments. This paper, which was prepared using secondary sources of information, argues that it is possible to introduce incentives linked to investments in what is posited as the Investment Redistributive Incentive Model (IRIM). The IRIM rewards companies that support local ownership and control of enterprises through an incentive system en route to total liberation/local control of enterprises in whole geographic areas as the ultimate goal. The IRIM uses investment incentives such as tax cuts, breaks or relief as redistributive instruments to effect change through the reconfiguration of the management and ownership structures of companies. IRIM could be applied in any company, large or small, for equity and social justice. Foreign investors could also be linked to educational institutions in relation to facilitating the supply of skilled workers. Redistributive formulas become imperative to avert the various forms of societal dissonance because current trajectories are not sustainable where only a few get rich while the majority remain poor in a world trapped in a capitalistic and narcissistic modus operandi.
