The Spatial Model of Unification and Competition in the Regional Tourism Sector

Journal Title: Проблеми економіки - Year 2014, Vol 2014, Issue 3

Abstract

The article draws attention to accounted communication of regional tourism entities in combination with their inner potential, which is currently of particular relevance and of scientific interest in the aspect of modeling such relationships to form competitiveness of tourism facilities and the entire regional system of tourism. The article was aimed at building a model of spatial competition, taking into account interactions of regional tourism entities in the form of information exchange through partnership, co-operation, and coproduction. Considering the source for changes of competition level, the factors were grouped in the form of internal and external levers. The generalized measure tool of the efficiency of a complex of internal factors, is the development potential of the regional tourism entities, which is to be regarded as a resulted internal lever of the chosen price policy of such entities itself. A measurer of the effectiveness of external factors is the level of communication between the environmental subjects. In this study it is proposed to complete the model of Hotelling spatial competition, which includes centrifugal force (price competition), with centripetal forces (external factors). It is shown, that equilibrium prices and locations of tourist entities are determinated by the standardization and competition. Particularly, the balance can be achieved in a wide range of minimum to maximum differentiation depending on the relative strength of the external effect (unification) as compared with the internal effect (price competition). It is found, that the condition of the minimum differentiation is fulfilled, when co-operation (centripetal force) becomes the dominanting factor.

Authors and Affiliations

Lesia Dmytryshyn, Tetiana Pavljuk

Keywords

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  • EP ID EP163163
  • DOI -
  • Views 112
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How To Cite

Lesia Dmytryshyn, Tetiana Pavljuk (2014). The Spatial Model of Unification and Competition in the Regional Tourism Sector. Проблеми економіки, 2014(3), 335-340. https://europub.co.uk./articles/-A-163163