From smart infrastructure to regenerative destinations: a tri-country study of tourism digital capabilities, innovation and ethical AI in Southeast Asia

Purpose Tourism destinations increasingly pursue digital transformation, yet most initiatives remain efficiency-focused. Existing research provides a limited empirical explanation of how digital capability, environmental literacy and ethical artificial intelligence (AI) jointly enable regeneration beyond sustainability. To address this gap, this study aims to develop and test a smart regenerative tourism transformation model explaining how digital readiness, organizational capability and ethical governance support net-positive destination renewal. Design/methodology/approach Survey data were collected from 543 tourism managers in Malaysia, Singapore and Thailand. Partial least squares structural equation modeling (PLS-SEM) was used to test eight hypothesized relationships linking smart tourism infrastructure, digital accessibility and inclusion, eco-literacy and net-zero commitment and regenerative destination governance to tourism digital transformation capability (TDTC), regenerative tourism innovation and regenerative destination transformation, with AI and data-ethics climate as a moderator. Findings The results indicate that smart infrastructure, inclusivity and governance strengthen TDTC, which, in turn, supports regenerative tourism innovation and regenerative destination transformation. A strong AI and data-ethics climate amplifies these relationships. These findings are based on managerial perceptions and suggest, rather than confirm, destination-level regenerative progress. Research limitations/implications This study’s cross-sectional design limits causal inference, as relationships remain correlational despite procedural and statistical checks. Future research should adopt longitudinal, experimental or panel data approaches to track TDTC over time. Additionally, incorporating objective indicators, such as AI ethics audits and digital investment records, can enhance validity. Expanding the sample to include diverse cultural contexts and adopting multi-stakeholder approaches will provide richer insights. Finally, dynamic-system modeling can better capture feedback loops between digitalization, governance and regeneration, advancing the understanding of regenerative tourism in evolving destinations. Practical implications This study provides evidence for advancing regenerative digital transformation in Southeast Asian tourism. It confirms that smart tourism infrastructure, digital accessibility, eco-literacy and regenerative governance collectively enhance digital transformation outcomes. AI and data ethics climate play a crucial moderating role, ensuring ethical digital progress. Tourism boards must invest in inclusive digital ecosystems, ensuring that technology empowers local communities and businesses. Governments should integrate eco-literacy and sustainability into programs, while transparent AI frameworks should be adopted to ensure fairness. The findings support the creation of an Association of Southeast Asian Nations (ASEAN) regenerative tourism data network to align digital standards and promote sustainable, inclusive tourism. Social implications This study highlights the role of digital transformation in fostering social inclusion and community well-being. By ensuring that technology enhances accessibility and empowers local communities, destinations can reduce socioeconomic inequalities and promote equitable growth. Regenerative governance frameworks and AI ethics are crucial for building trust and accountability in digital tourism, ensuring that innovations benefit all stakeholders. The integration of eco-literacy and sustainability practices further supports societal regeneration, encouraging active participation in conservation efforts and sustainable tourism practices. The proposed ASEAN regenerative tourism data network offers a model for fostering inclusive, responsible digital engagement across tourism destinations. Originality/value This study offers a tri-country empirical examination of how ethical AI conditions the transformation of digital capability into regenerative value creation. It advances tourism theory by positioning digital transformation as a morally governed organizational capability that supports socio-ecological renewal rather than efficiency or harm reduction alone.