Abstract

The survey is aimed to justify system approach to assess companies’ interaction and environment in tourism clusters. Intangibility of tourism product is determined by the specifics of economic entity and territorial authorities’ interaction, that makes it a prerequisite to use system approach for companies’ interaction within regional tourism cluster. The paper identifies institutional environment of business development in tourism cluster taking into accountthe rapid development of communication and information technologies. To achieve this goal the authors analysed the theoretical frameworks of institutional environment of tourism and the process of its formation and factors. The proposed technique is based on system approach and allows to indicate the deficiency in tourism cluster models, taking such critical issues into account as interconnection between cluster actors, regional competition policy, investment climate, development of standards and systems for the services certification, availability of qualified personnel in the region’s labour market, tourism infrastructure, financial and tax policies in the region, network of competitive local suppliers, public policies on tourism, tourism support programs and communication problems. As a result, the rationale of using system approach to evaluate effectiveness of subjects’ interaction in tourism clusters to determine weaknesses in regional tourism clusters was formed

Highlights

  • Regional development depends on its economic growth and tourism potentials which are closely connected and contribute to the national level of the country advancement

  • Tourism sector consists of many supportive parts of institutions such as private segment of economy and public agencies

  • A territorial group of companies and institutions with vertical and horizontal links create and implement a comprehensive tourism service that provides the basis for the cluster [2]

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Summary

Introduction

Regional development depends on its economic growth and tourism potentials which are closely connected and contribute to the national level of the country advancement.The tourism sector being nonhomogenic and dependable on others’ economic spheres differs a lot from another economic industries [1]. According to this approach, proposed by A. A territorial group of companies and institutions with vertical (companies creating tourist product) and horizontal links (infrastructure, regulatory base, information) create and implement a comprehensive tourism service that provides the basis for the cluster [2]. Porter presents the conditions for tourism cluster emergence based on general prerequisites, such as demand, competitive environment, existence of supporting production, and special conditions including a specific territory, the time needed and financial support, and as a result competitive advantage (qualified personnel, infrastructure, capital) being created [3]

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