AN AGENT-BASED MODELLING APPROACH FOR ASSESSING ENTREPRENEURIAL INTENTIONS AND DEVELOPMENT STRATEGIES IN THE RURAL HOSPITALITY INDUSTRY

Abstract

Rural hospitality and tourism (RHT) play a key role in rural revitalization, especially due to the impact of COVID-19, with more citizens choosing to travel to the countryside for a staycation. Local SMEs, especially family-owned enterprises, make up the majority of the RHT sector, not only providing services and products to satisfy tourists, but also helping with local employment. However, entrepreneurs operating in rural areas face many challenges in terms of capital, skills and education. Hence, it is important to explore the entrepreneurial intention (EI) of local people and how policies can support or change their behaviours. Current research on the RHT industry, rarely study the EI of local people, and the literature on rural entrepreneurship concentrates on developed countries. This study therefore uses agent-based modelling to explore how locals' EI in Chongming island (China) respond to the current impact of COVID-19, and whether policies will bring about changes on the supply side of RHT sector.