Investigating the Impact of Spiritual Leadership on Employee Performance in Tour Operators: The Mediating Role of Psychological Empowerment

The tourism sector drives economic growth and cultural exchange, fostering innovation and employment. Spiritual leadership (SPRL) enhances employee engagement and performance through values-driven practices focused on purpose, empowerment, and connectedness. This study examines SPRL's impact on employee performance (EMP) and psychological empowerment (PSYE) in Egypt and Saudi Arabia's tourism sectors, exploring PSYE as a mediator. A quantitative design was used, with surveys from 399 employees. Structural equation modelling (SEM) analysis revealed that SPRL significantly enhances both EMP and PSYE. Moreover, PSYE positively influences EMP and mediates the SPRL-EMP relationship. These results contribute to theoretical advancements by providing empirical evidence of SPRL’s efficacy in a tourism-specific context, where employee engagement and adaptability are paramount. Practically, the study underscores the potential of integrating spiritual leadership principles into management strategies to foster resilience, engagement, and productivity, offering actionable insights for leadership development in the tourism industry.