Abstract

In the recent years, the health and wellness tourism industry has become one of the new emerging industries in Pakistan. In terms of the sharing economy, the driving mechanism of the health and wellness tourism industry has undergone significant changes. Based on a combination of theoretical and practical research, the paper explores the dynamic system and mechanism of innovation development of health and wellness in the tourism industry in Pakistan. Firstly, it theoretically constructs the driving factors in four aspects, which include market demand, industrial supply, infrastructure, and external environment. Secondly, taking Khyber Pakhtunkhwa province (KPK) as an example, it uses the entropy method and Grey relational analysis to test the driving factors system. The empirical results show that four aspects jointly influence the innovation of the health and wellness tourism industry in Pakistan. Finally, this study discusses several practical implications for the development of the health and wellness tourism industry of KPK for academics, policymakers, business owners, and scholars, with recommendations for future research.