Pull Factors affecting entry choice: the internationalization of the Accommodation Sector

Many theories have been used to explain international trade and why certain countries attract hotel chains more than others. Throughout the centuries, literature has witnessed a number of attempts to explain international trade. Successive research in this area has led to a group of theories proposed by several authors who have been crucial to understand the choice of a destination to enter. These theories provide some insight into the complexity of internationalization flows. However, an integrated theory that combines these elements in an analytical manner has yet to be developed. Although these theories appear in an isolated manner, they should be understood as complementary and not dissociated or regarded as alternatives. Even though there are many theories, researchers are unanimous in affirming that hotel chains' internationalization is influenced by pull factors, related to specific characteristics of the host country, contextual environment (common to all companies) and the transactional environment (specific to each sector) and by push factors, related to specific characteristics of the companies and of their home country. Though both factors are important, this research gives special emphasis to the pull factors. Accordingly, the main aim of this paper is to identify which pull factors influence hotel chains willingness to enter a destination (Portugal). With this purpose, a theoretical model was developed. The model included 11 pull factors (characteristics of host country): - 6 Specific Factors of the Contextual Environment (SFCE): Country risk; Level of development; Regulation; Integration in international organizations; Cultural and historical affinities; Geographical location. - 5 Specific Factors of the Tourism Sector (SFTS): Competitiveness of the sector; Government policies for the sector; Image/brand of the sector; Tourism offer; Tourism demand. This model also seeks to discover if the main barriers to foreign investment are related to the SFCE or the SFTS. All factors were explored in the construction of logical relations that underpin the enunciation of the hypothesis.