Tourism Cluster Theory

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This chapter outlines the theoretical base on which this research has been conducted. The chapter begins with a review of the literature on the determinants of national advantage and the cluster theory and competitive advantage. It is followed by a discussion on the benefits and challenges of tourism clustering and cluster business models accompanied by an analysis of the concept of tourism and its importance to national economics. The research concludes with a focus on Malta’s tourism industry and MICE sector. 2.1 The determinants of national advantage Porter’s (1990) national “diamond” addresses competition in terms of the determinants of national advantage, in particular industries or industry segments as reproduced in Figure 2.1. Although…show more content…
A cluster was now defined by Porter as “a geographically proximate group of interconnected companies and associated institutions in a particular field, linked by commonalities and complementarities”. Porter argues that clustering in the manufacturing industry is about gaining better access to raw material and enhancing other logistical aspects, whilst clustering in the services industry is about working within an environment with enhanced innovation, where product and service development are constant and the labour force is a skilled…show more content…
These are commonalities shared by tourism considering that the externalities developed surpass the simple economies of agglomeration (Santos, Almeida and Teixeira, 2008). Monfort (2000) forwards a classification of tourism cluster which relates to the origins of Porter, stating it as “the complex set of different elements including the services provided by tourism companies or businesses (accommodation, restaurants, travel agencies, water or theme parks,…) the wealth provided by the holiday experience of a tourist; the multidimensional encounter between related companies and industries; the communication and transport infrastructures; the complementary activities (shopping facilities, tradition of fairs, etc.); the support services (training, information, etc.); and the natural resources and institutional
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