Factors of geographical concentration in the tourism industry: evidence from Northeast Caucasus Daniil A. Sitkevich 1, Andrei S. Korotkov

Purpose: is to study the factors influencing the geographical concentration of hospitality industry enterprises in the republics of the Northeast Caucasus (Ingushetia, Chechnya and Dagestan) – regions that have been the object of an active tourism cluster policy for many years, and which have seen a significant increase in the number of vacationers over the past three years.
Methods: the study is based on a hybrid methodology. It uses cartographic data on the prevalence of resolution and collective dining facilities in the Northeastern Caucasus, as well as the results of 29 semi-structured in-depth interviews with representatives of the hospitality industry in Dagestan.
Results: the tourist boom that occurred after 2020 in the North Caucasus is not taking place in the special economic zones that have been created. Tourist enterprises are concentrated in those municipalities where the state has not pursued a cluster policy. In addition to the abundance of basic tourist resources (sea, mountains, natural and cultural attractions), the formation of the hospitality industry in these locations has been associated with their transport accessibility, agglomeration effect, the desire of entrepreneurs to take tourists to their native villages, differences in business culture between residents of different municipalities, and the established preferences of tourists themselves. The study also showed that, despite the suitable natural conditions for the creation of ski and beach resorts, the efforts of federal authorities to create tourist clusters were insufficient. The relatively successful cases in the region are associated either with the historically established tourist center, or with the additional efforts of regional authorities.
Conclusions and Relevance: insufficient infrastructure policy in the regions hinders the development of tourism not only within special economic zones, but also outside them. Reorientation from the creation of new large resorts to support existing businesses could give a much greater impact on the development of the tourism sector and the modernization of the North Caucasus economy.

1. Cho V. A study of the non-economic determinants in tourism demand. International Journal of Tourism Research. 2010; 12(4):307–320. https://doi.org/10.1002/jtr.749 (In Eng.)

2. Khadaroo J., Seetanah B. Transport infrastructure and tourism development. Annals of Tourism Research. 2007; 34(4):1021–1032. https://doi.org/10.1016/j.annals.2007.05.010 (In Eng.)

3. Chou M.C. Does tourism development promote economic growth in transition countries? A panel data analysis. Economic Modelling. 2013; 33:226–232. https://doi.org/10.1016/j.econmod.2013.04.024 (In Eng.)

4. Wang S., Yamada N., Brothers L. A case study: Discussion of factors and challenges for urban cultural tourism development. International Journal of Tourism Research. 2011; 13(6):553–569. https://doi.org/10.1002/jtr.826 (In Eng.)

5. Besculides A., Lee M.E., McCormick P.J. Residents' perceptions of the cultural benefits of tourism. Annals of tourism research. 2002; 29(2):303–319. https://doi.org/10.1016/S0160-7383(01)00066-4 (In Eng.)

6. Enright M.J., Newton J. Determinants of tourism destination competitiveness in Asia Pacific: Comprehensiveness and universality. Journal of Travel Research. 2005; 43(4):339–350. http://doi.org/10.1177%2F0047287505274647 (In Eng.)

7. Navickas V., Malakauskaite A. The Possibilities for the identification and evaluation of tourism sector competitiveness factors. Engineering Economics. 2009; 61(1):37–44. URL: https://www.inzeko.ktu.lt/index.php/EE/article/view/11581 (accessed 15.04.2023) (In Eng.)

8. Jovanović S., Ilić I. Infrastructure As Important Determinant of Tourism Development in the Countries of Southeast Europe. Ecoforum Journal. 2016; 5(1):288–294. URL: http://www.ecoforumjournal.ro/index.php/eco/article/view/329 (accessed 15.04.2023) (In Eng.)

9. Thomas R., Long J. Improving Competitiveness: Critical success factors for tourism development. Local Economy. 1999; 14(4):313–328. URL: https://www.tandfonline.com/doi/abs/10.1080/02690940008726507 (accessed 15.04.2023) (In Eng.)

10. Mishurinskij D.V., Bredikhin A.V. Recreational-Geomorphological Information Support of Tourist Activities. Lomonosov Geography Journal. 2020; (4):42–50. EDN: https://elibrary.ru/wgodwl (In Russ.)

11. Bozhilina Е.А., Belova D.A., Sorokina V.N. Climatic maps for recreation and tourism. Lomonosov Geography Journal. 2008; (3):19–23. EDN: https://elibrary.ru/jvivol (In Russ.)

12. Goh C. Exploring impact of climate on tourism demand. Annals of Tourism Research. 2012; 39(4):1859– 1883. https://doi.org/10.1016/j.annals.2012.05.027 (In Eng.)

13. Hawkins J.P., Roberts C.M. The growth of coastal tourism in the Red Sea: present and future effects on coral reefs. Ambio. 1994; 23(8):503–508. URL: https://www.cabdirect.org/cabdirect/abstract/19951805298 (accessed 15.04.2023) (In Eng.)

14. Kipkeeva P.A., Potapenko Yu.Ya. Principal Factors of Sustainable Tourism in the Karachai-Cherkess Republic. Lomonosov Geography Journal. 2015; (5):76–81. EDN: https://elibrary.ru/vskgsl (In Russ.)

15. Li Z., Liu H. How tourism industry agglomeration improves tourism economic efficiency? Tourism Economics. 2022; 28(7):1724–1748. https://doi.org/10.1177/13548166211009116 (In Eng.)

16. Su Y.-S., Hung L.-C. Spontaneous vs. policy-driven: The origin and evolution of the biotechnology cluster. Technological Forecasting and Social Change. 2009; 76(5):608–619. https://doi.org/10.1016/j.techfore.2008.08.008 (In Eng.)

17. Fernández-Tabales A., Foronda-Robles C., Galindo-Pérez-de-Azpillaga L., García-López A. Developing a system of territorial governance indicators for tourism destinations. Journal of Sustainable Tourism. 2017; 25(9):1275–1305. https://doi.org/10.1080/09669582.2016.1260136 (In Eng.)

18. Fundeanu D.D. Innovative Regional Cluster, Model of Tourism Development. Procedia Economics and Finance. 2015; 23:744–749. https://doi.org/10.1016/S2212-5671(15)00501-8 (In Eng.)

19. Weiermair K., Peters M., Frehse J. Success Factors for Public Private Partnership: Cases in Alpine Tourism Development. Journal of Services Research. 2008; 8:7–21. URL: https://www.cabdirect.org/cabdirect/abstract/20083138483 (accessed 15.04.2023) (In Eng.)

20. Wray M. Policy communities, networks and issue cycles in tourism destination systems. Journal of Sustainable Tourism. 2009; 17(6):673–690. https://doi.org/10.1080/09669580903071979 (In Eng.)

21. Blackman A., Jewell B., Kuilboer A., Hyvonen T., Moscardo G., Foster F. Factors Contributing to Successful Tourism Development in Peripheral Regions. Journal of Tourism Studies. 2004; 15(1):59–70. URL: https://search.informit.org/doi/abs/10.3316/ielapa.200501369 (accessed 15.04.2023) (In Eng.)

22. Banerjee O., Cicowiez M., Moreda A. Evaluating the economic viability of public investments in tourism. Journal of Benefit-Cost Analysis. 2019; 11(1):101–130. https://doi.org/10.1017/bca.2019.32 (In Eng.)

23. Fonotov A.G., Bergal O.E. Territorial Clusters as a Mechanism for Spatial Development of Russian Economy. Russian Journal of Economic Theory. 2019; 16(4):673–687. EDN: https://elibrary.ru/ypjpij. https://doi.org/10.31063/2073-6517/2019.16-4.6 (In Russ.)

24. Avanesov S.S., Magomedov A.M. The potential for the development of extreme tourism in Dagestan. Issues of structuring the economy. 2014; (1):294–296. EDN: https://elibrary.ru/skcrfr (In Russ.)

25. Lee Y.-J.A., Jang S., Kim J. Tourism clusters and peer-to-peer accommodation. Annals of Tourism Research. 2020; 83:102960. https://doi.org/10.1016/j.annals.2020.102960 (In Eng.)