What typically follows political stability in developing countries regarding hotel development?

Political stability in developing countries often leads to increased investor confidence, which is crucial for hotel development. When a country has a stable political environment, it signals to potential investors that their investments are secure and that there are fewer risks associated with volatility or abrupt policy changes. This increased confidence typically encourages capital inflow, leading to quicker and more comprehensive hotel development projects.

In a context of stability, governments may also implement favorable policies, improved infrastructure, and promote tourism, further stimulating the hotel industry. Such developments can result in the rapid expansion of hospitality offerings, meeting the growing demand from both domestic and international tourists eager to explore the region. This combination of factors propels the hospitality industry forward, contrasting sharply with scenarios of instability where investment often stalls.