From Training Costs to Economic Returns: Evaluating the Financial Performance of Human Capital Investments in the Tourism Sector

This study assesses the economic return on investment (ROI) of training and human resource development programs in the Albanian tourism industry, a rapidly growing and labor-intensive sector. Based on a structured survey of 100 respondents from 50 tourism enterprises and statistical analyses conducted in SPSS 29, the research evaluates the financial and organizational impacts of training, the degree of formal ROI measurement, and key structural barriers. Results indicate that 61% of enterprises invested in training during the previous 12 months, yet only 28% applied formal financial ROI assessments. Using the Phillips (1996) model, the analysis identifies an average ROI of +63% and a payback period of approximately 8.2 months, confirming training as a high-return investment. Training also yielded positive non-financial outcomes, including higher employee satisfaction (+21%), lower staff turnover (–13%), improved service quality (64%), and increased customer satisfaction (61%). Correlation analysis (r = 0.68, p < 0> Despite these benefits, enterprises face persistent challenges, including budget constraints, limited staff time, low motivation, and a shortage of qualified trainers, compounded by weak analytical capacity and non-standardized evaluation tools. The study concludes that while training generates substantial value, its full ROI potential remains underexploited. It recommends institutionalizing ROI measurement, strengthening strategic human capital investment, expanding digital learning, and reinforcing collaboration with educational institutions to enhance competitiveness and sustainability in the tourism sector.