Development Impact of FDI in Hotel: Case Study of Terme Tuhelj in Croatia

Abstract

The main objective of this study is to assess the development impact of foreign direct investment (FDI) in tourism in the case of foreign-owned hotel on the micro-location of Croatia. As an example of this study, the FDI in the Terme Tuhelj, a hotel complex which is located in the area of small local government in the continental Croatia, is choosen. The research methodology is based on questionnaires, unstructured interviews and processing of secondary data sources. The research results show that Terme Tuhelj became the engine of growth of Tuhelj municipality and Krapina-Zagorje County. The Terme Tuhelj example showed how a foreign-owned hotel, in less developed country, has a significant development impact on the local economy.

Keywords

• FDI
• Tourism
• Development Impact
• Terme Tuhelj