Abstract
Artificial intelligence (AI) is rapidly transforming tourism through intelligent immersive technologies that enable destinations to be experienced beyond physical travel. While existing research has largely focused on user experience and technological capabilities, limited attention has been paid to the governance, institutional readiness, and digital inclusion required for the sustainable adoption of AI-enabled virtual tourism systems, particularly in developing economies. Addressing this gap, this study investigates the opportunities and challenges of virtual tourism in Pakistan by integrating the perspectives of policymakers and non-traditional tourists facing financial, health, or geographical mobility constraints. Drawing on the Experience Economy Framework and the Policy and Governance Perspective, the study employs an exploratory sequential mixed-methods design comprising qualitative interviews with policymakers and digital tourism professionals, followed by a quantitative survey of 362 potential virtual tourists. The findings reveal four key insights. First, telepresence and perceived authenticity significantly enhance enjoyment and behavioural intention towards AI-enabled virtual tourism experiences. Second, government digital readiness positively influences policy support, although institutional fragmentation constrains implementation. Third, digital inclusion and affordability remain critical barriers to equitable adoption. Finally, sustainable virtual tourism depends on coordinated governance, cross-sector collaboration, and inclusive digital policies. The study advances theory by conceptualising AI-enabled virtual tourism as a socio-technical system in which intelligent user experiences and governance capacity jointly determine adoption and sustainability. It further contributes by integrating experiential and institutional perspectives into a unified framework applicable to developing economies. The findings provide practical guidance for policymakers and tourism stakeholders seeking to design inclusive, intelligent, and sustainable virtual tourism ecosystems.
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