Determinantes do IDE no setor turístico da Madeira

Abstract

The objective of this study is to identify and analyse the main factors that influence the investment decision of foreign investors in the tourism sector in Madeira, one of the main industries in the region. Representing a significant portion of the region's Gross Domestic Product (GDP), tourism not only drives the local economy, but also plays a key role in attracting increasing foreign direct investment (FDI). To answer this question, a mixed but essentially qualitative methodology was adopted, based on the case study method, using the analysis of semi-structured interviews conducted with key stakeholders and investors. The results indicate that the most determining factors are air connections, natural and intrinsic factors of the island such as its nature, climate and quality of life, human capital, the quality of infrastructure, political stability and investment security, with a strong emphasis also on the role of the Madeira Promotion Association (APM). This study thus reinforces the importance of a management model that balances traditional factors, such as infrastructure and human capital, with the unique attributes of Madeira, such as hospitality and natural and cultural differentials. Regarding the relevance of the results, it is worth highlighting the need to prioritize the expansion of air connections, with a focus on increasing direct flights to strategic markets. It is also essential to invest in human capital, promoting hospitality and professional qualifications, as well as improving the infrastructure of the main tourist attractions. Additionally, it is important to emphasize the development of sustainable projects and the continuous promotion of the authenticity and diversity of the island as an annual destination, strengthening the role of entities such as the APM, given the growing demand for initiatives with these characteristics. Finally, reducing bureaucracy and implementing administrative reforms are crucial to creating a more efficient and competitive environment, responding to one of the main limitations identified in the study.

Date of Award	31 Mar 2025
Original language	Portuguese
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Mário Ferreira (Supervisor)