Development of micro-clusters in tourism: a case of equestrian tourism in northwest Iceland

Abstract

ABSTRACTCluster theories have been applied in studies of various industries and regions, including tourism in rural areas, but rarely in the equestrian industry. The focus of this article is to report on the development of an emerging micro-cluster within, and related to, equestrian tourism industry in Northwest Iceland. The research was based on a document analysis and open-ended interviews. Through an account of the development of cluster-related activities and by drawing up a cluster map of both core and related equestrian activities in the Northwest, the study reflects on the impact and character of the cluster development. The conclusions reveal a progression towards a micro-cluster, intertwined with business activities and lifestyle. Education, knowledge transfer and spreading of know-how are important activities for both regular operation and innovation within the micro-cluster. Additionally, there are strong connections to tourism and agricultural clusters. The cluster development strengthens the business environment for equestrian businesses and the competitiveness of the Northwest. New markets and growth opportunities can be exploited and collaboration with supporting and related industries can be further intensified. Such a positive development leads to investment in infrastructure and innovation activities including creation of new jobs in the region, and growth in local rural development.