Abstract
Rural and peripheral development is still a matter of concern in several western countries. Depopulation, low density of business activities, younger people emigration and better-qualified individuals feeling that such regions have been abandoned by the government, and incapable of moving on, are among the key indicators to “understand” rural and peripheral areas. Rural tourism has long been understood as an effective catalyst of change in depressed and deprived (of entrepreneurial capacity) areas and to explore a unique set of amenities. Because of funds directed to help private investment projects in rural tourism facilities, most peripheral areas are now relatively well endowed with key infrastructures. Nevertheless, the tourism lead approach produced mixed results due to low levels of demand in some areas and lack of a cooperative behavior among providers to maximize the opportunities offered by the wide range of attractions. In this paper, we investigate to what extent investments in infrastructure helped the rural tourism sector to attract more visitors in Madeira. Based on the panel-data approach, this paper provides insights to analyze the development path of rural tourism in Madeira and to explores how local policy makers may be the “missing link” needed to improve the sector prospects based on tangible and intangible amenities.
Highlights
The economic development of rural areas is still a pressing issue in most western countries, especially in peripheral areas coping with high levels of unemployment, declining farm income, depopulation and emigration of the younger and betterqualified individuals [1, 2]
According to the European Evaluation Network for Rural Development (ENRD), axis 3 consists of three modules aimed at (i) sustainable eco-nomic development, which includes the diversification of farm holdings and rural tourism promotion; (ii) life quality and viability of the rural community; and (iii) the acquisition of specific skills [11–13]
RT is expected to act as a key agent of local development in rural areas, in line with the regional development research
Summary
The economic development of rural areas is still a pressing issue in most western countries, especially in peripheral areas coping with high levels of unemployment, declining farm income, depopulation and emigration of the younger and betterqualified individuals [1, 2]. Policy measures aiming at diversifying rural economies through the development of new sectors/products [2, 8] have been conceptualized by regional governments on islands, in an attempt to reverse the trend of decline in terms of quality of life that has been felt across rural areas. Such approach is strongly encouraged by the European Union, to “fill the gap” between the over-developed coastal areas and the rural hinterland [9]. According to the European Evaluation Network for Rural Development (ENRD), axis 3 consists of three modules aimed at (i) sustainable eco-nomic development, which includes the diversification of farm holdings and rural tourism promotion; (ii) life quality and viability of the rural community; and (iii) the acquisition of specific skills [11–13]
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
