Bridging the Virtual Gap: Enterprise Readiness and Barriers to Virtual Reality Tourism Adoption in a Developing Economy

Abstract

Virtual reality tourism has seen rapid global growth as it provides novel experiences for tourists. However, in some central cities with technological improvements and digital transformation in developing countries, the application of virtual reality tourism remains limited. This study explores the reasons behind the slow adoption of virtual reality tourism in these cities by examining the readiness of tourism businesses using the TOE framework. Using a quantitative approach, this study analyzes data from 260 tourism businesses through Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that technological improvement has the strongest positive influence on the intention to adopt virtual reality (VR) tourism, followed by organizational competency, compatibility and readiness, and external environmental factors. Interestingly, perceived disadvantages did not significantly moderate these relationships. Based on these results, several practical implications are proposed to guide policymakers and tourism enterprises in fostering more effective VR adoption strategies.

Keywords

virtual reality tourism TOE framework smart tourism virtual reality tourism enterprise developing economy

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