Academic journal article Global Economic Observer

EU Travel and Tourism Industry - A Cluster Analysis of Impact and Competitiveness

Academic journal article Global Economic Observer

EU Travel and Tourism Industry - A Cluster Analysis of Impact and Competitiveness

Article excerpt

(ProQuest: ... denotes formulae omitted.)

1. Introduction

The economic importance of tourism was for many decades underappreciated, but nowadays we discover that the concept of "tourism activity" became "tourism industry". The European Union gives tourism a high importance, which contributes substantially to its economic and social objectives. Regarding the tourism, the EU has as main objective to achieve an optimal balance of tourism activities in member countries. In 2010 the Commission proposed a strategy for boosting European tourism, in order to maximize the potential of this sector. A total of 21 proposals, on the four main directions, are subject of the Commission's strategy on tourism in Europe - "Europe - the world's No 1 tourist destination - a new political framework for tourism in Europe": (1) Stimulate competitiveness in the European tourism sector (Promoting diversification of the supply of tourist services; Developing innovation in the tourism industry; Improving professional skills; Encouraging an extension of the tourist season ; Consolidating the socioeconomic knowledge base for tourism); (2) Promote the development of sustainable, responsible and high-quality tourism ; (3) Consolidate the image and profile of Europe as a collection of sustainable and high-quality tourist destinations; (4) Maximise the potential of EU financial policies and instruments for developing tourism.

This paper proposes an assessment of tourism in the European Union, starting from two types of information: the impact of tourism in the EU economy and the competitiveness of the tourism sector.

Based on statistics provided by the World Travel and Tourism Council and the World Economic Forum, we calculate multiplier coefficient for tourism, the tourism industry efficiency, the balance of payments in international tourism, and finally grouping EU countries based on these variables using cluster analysis. Related to the World Travel and Tourism Council analyses, the direct impact includes employees and the related value added for accommodation, recreation, transportation etc, while the indirect impact measures the supply chain impact, the induced impact measures the impacts of incomes earned directly and indirectly as they are spent in the local economy. Direct, indirect and induced impacts are equal with the total economic impact of tourism (World Travel and Tourism Council, 2013a).

World Economic Forum has calculated since 2008 (next editions were in 2009, 2011, 2013) a tourism competitiveness index. "The Travel & Tourism Competitiveness Index (TTCI) aims to measure the factors and policies that make it attractive to develop the T&T sector in different countries"('World Economic Forum, 2013). The index includes 14 criteria, on the three main pillars: A

- Regulatory framework (Policy rules and regulations, Environmental sustainability, Safety and security, Health and hygiene, Prioritization of Travel and Tourism);B - Business environment and infrastructure (Air transport infrastructure, Ground transport infrastructure, Tourism infrastructure, Information and Communications Technical infrastructure, Price competitiveness in T&T industry); C

- Human, cultural, and natural resources (Human resources, Affinity for Travel & Tourism, Natural resources, Cultural resources). The paper is structured as follows: literature review, research methodology, results and discussion, conclusions.

2. Literature review

The specialized literature has covered important stages in analyzing the impact and competitiveness of tourism destinations over the last few decades.

The impact of tourism (Sadler, 1975; Liu et al., 1984 Rita, 2000; Dwyer et al., 2004; Ivanov & Webster, 2007) or competitiveness of destinations (Gooroochurn & Sugiyarto, 2005; Kayar & Kozak, 2007; Leung & Bal oglu, 2013) were important directions for assessing the growing importance of tourism in the global economy. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed


An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.