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THE IMPACT OF AI READINESS ON DESTINATION RESILIENCE AND
REGENERATIVE TOURISM: EMPIRICAL EVIDENCE FROM TOURISM SMES IN
HO CHI MINH CITY, VIETNAM

Nguyen Nguyen Phong* , Nguyen Phan Hoai Lam 2
1

1 Ho Chi Minh City Open University, Vietnam.
2 Sebang Battery Vina Co., Ltd, Dong Nai Vietnam.
(*E-mail: phong.nn@ou.edu.vn)

ABSTRACT
In the era of the digital economy, Artificial Intelligence (AI) has emerged as a
transformative force in the tourism and hospitality sector. Concurrently, global
disruptions have necessitated a paradigm shift from traditional sustainability to
regenerative tourism, wherein destinations actively restore socio-ecological systems.
Despite the growing discourse on smart tourism, existing literature predominantly
focuses on large corporations and macro-level governance, leaving a critical gap regarding
the role of small and medium-sized enterprises (SMEs). This study aims to investigate the
impact of AI readiness - encompassing predictive analytics, service personalization, and
AI-oriented human capital - on destination resilience and regenerative tourism practices.
Grounded in the Resource-Based View (RBV) and socio-ecological resilience theory,
the research proposes a conceptual model where organizational adaptive capacity
mediates the relationship between SME AI readiness and destination-level outcomes.
Furthermore, local governance and policy support are examined as moderating variables.
Employing a quantitative research design, data were collected through a purposive survey
of 250 tourism SMEs operating in Ho Chi Minh City, Vietnam. The structural relationships
were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM).
The results empirically demonstrate that AI readiness is not merely an operational
upgrade for cost reduction but a strategic catalyst that significantly enhances SMEs'
adaptive capacity. Crucially, the findings reveal that organizational adaptive capacity acts
as a perfect mediating mechanism, directly driving macro-level destination resilience and
facilitating regenerative practices. Additionally, governance and policy support exert a
significant positive moderating effect on these outcomes. Theoretically, this study bridges
the gap between grassroots technological adoption and destination recovery. Practically,
it provides actionable insights for policymakers to foster inclusive digital infrastructure
and ethical AI adoption, ensuring tourism competitiveness in the AI era.
Keywords: AI readiness, destination resilience, regenerative tourism, tourism SMEs,
adaptive capacity, digital economy, Ho Chi Minh City.

1. Introduction
In the current era of the digital economy, Artificial Intelligence (AI) has emerged as
a transformative force reshaping the tourism and hospitality sector (Buhalis et al., 2019).
AI applications - ranging from predictive analytics and smart recommendation systems
to robotics and automated operations - are no longer merely futuristic concepts but
strategic drivers of innovation, operational efficiency, and personalized customer
experiences (Huang et al., 2021). Concurrently, the global tourism industry is navigating
unprecedented disruptions, including pandemics, climate change, and market volatility,

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