TOURISM CLUSTERS: UNCOVERING DESTINATION VALUE CHAINS

Abstract

It is widely accepted that technological change underpins a global economy and that geographic location and concentration is of foremost importance for tourism development and competitive advantage. This paper discusses the role of tourism networks, clustering and destination value chains for micro and small and medium size tourism enterprises (SMEs) in freely assembled destinations. In discussing destination benefits and barriers surrounding SME clustering, SME positioning and performance are highlighted. It is proposed in this paper that SME clustering and value are not always naturally established. Successful destination clusters may be created by upgrading SME performance, analysing local value chains and matching both tangible and intangible sources of value, such as systems, leadership, relationships and brands with demand-side value segmentation.