Tourism Clusters on the Murray River: Success Factors and Barriers

Abstract

Varying degrees of success exist in exploiting natural advantages in association with the Murray River, Australia. Some regional centres located along the river, which have successfully added value to their natural advantage, are identified as well as those not so successful. The clustering concept involves 'geographical concentrations of interconnected companies, specialised suppliers, service providers, firms related in industries, and associated institutions in a particular field that compete, but also co-operate' (Porter, 1998, pp.197-198) and often regarded as being closely associated with the economics of competitive advantage. The concept of business clustering enables a greater understanding of regional diversity to be achieved, while also encouraging less successful regional centres to undertake future initiatives to encourage regional tourism development. Key factors characteristic of a 'successful' cluster may be recognised in accordance with the following characteristics identified by Porter (1998): 1) interdependence of firms; 2) flexible firm boundaries; 3) co-operative competition; 4) trust in sustained collaboration; 5) community culture and supportive public policies; 6) shared understanding of competitive business ethic; 7) private sector leadership; 8) wide involvement of cluster participants; 9) appropriate cluster boundaries; 10) institutionalisation of relationships; 11) social structure and attention to personal relationships; and 12) life cycles (Jackson and Murphy, In Press, p. 38). The degree to which four regional centres located on the Murray River demonstrate these characteristics will be determined and regarded as one with highly significant clustering potential. Absence of particular characteristics may be considered barriers to successful cluster development.