| Summary: | For the positive social cultural and economic effects that tourism entails, it is turning into the fist leading industry in the world, giving rise to a considerable range of opportunities such as job creation, foreign exchange and gain of income. This research investigates two factors, tourist’s satisfaction and loyalty, in the region of Sarein. It is applicable regarding the goal- type and methodology employed is correlation. Questionnaire is used as the main tool in gathering information. Statistical population of the research consists of the tourists who traveled to Sarein in August. Owing to the unknown number of tourists (Statistical population), available sampling method was employed. Also, correlation coefficient was utilized to analyze the questions, to confirm or rule out the hypotheses, and also to evaluate the strength of the relations. Findings displayed a positive relationship between ‘organizational and environmental factors’ and ‘satisfaction’, and also between these three factors and ‘loyalty’, (R= 0/71). As a result institutional and environmental factors increase satisfaction and consequently loyalty of tourists, leading to their return to the region and spread of word of mouth. In the end, improvement of the environmental and institutional factors was suggested.
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